Minority of Millennial Investors in U.K. Favor Robo-Advisors
The digitalization of the wealth management industry will not render the need for human expertise obsolete, according to the latest findings from Global Data.
From robo-advisors to AI-enabled chatbots, technology is a relatively new addition within the wealth management industry. However, the need for human financial advice will not be pushed to the side any time soon, says GlobalData, a leading data, and analytics company. Face-to-face communication, among all generations, remains the top priority when arranging the buying and selling of investments.
«The wealth managers found joy in the reassurance that the more digitally advanced younger generations will still require human expertise.» Sergel Woldemichael, Wealth Management Analyst at GlobalData said in a statement.
Email and telephone communication are in second and third place respectively. Meanwhile, only 5% of millennial investors favor robo-advisors when arranging their investments, with the majority still relying on a human planner or advisor.
Two-prong approach
With a potential market downturn on the horizon, robo-advisors may not be ready to tackle the risks that client investments have, however. On the other hand, traditional wealth managers have shown flexibility and adaptability when dealing with recessions and periods of market volatility
«Pigeonholing the next generation into a digital chamber is the wrong way to view millennials. Mobile investment apps are unable to cater to the emotional needs of humans relating to financial advice. A hybrid model is the best bet for the moment, and for the near future,» Woldemichael adds.
