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Are FAs Over 40 Missing a Trick -- Or Will Experience Prove Them Right?

January 3, 2019

While millennial and younger Gen X financial advisors view technology as a driving force in the future of the wealth management industry, advisors over 40 aren’t convinced, according to a recent survey.

Over three-quarters of financial advisors under 40 believe technology will level the advice industry playing field in just five years, according to a survey of more than 375 advice professionals by iCapital Networks cited by FA magazine.

But only 27% of advisors over 40 think so, the survey found, according to the publication.

Younger advisors are also more likely to believe that technology would help them focus on prospecting and face time with clients, in large part by eliminating the need for them to conduct portfolio management in the future, according to iCapital, FA magazine writes.

Meanwhile, less than 5% of advisors over 40 believe that tech interfaces could help them build client interfaces — and just 11% of the older advisors think technology could significantly cut investment management costs, the survey found, according to the publication.

It’s perhaps not surprising, then, that while more than half of advisors under 40 intend to include a robo-advisor among their offerings, less than 13% of those over 40 plan to do so, according to iCapital data cited by FA magazine.

Nonetheless, regardless of age, financial advisors believe they’re indispensable when it comes to doling out advice: none of the respondents, young or old, thought that robos could ever replace human financial advisors, the survey found, according to the publication.

By Alex Padalka
  • To read the FA Magazine article cited in this story, click here.