A Refinitiv wealth management study says technology has proven it will not replace advisors - but for how long?
Refinitiv gets personal in its recently released study of the wealth management industry by trying to answer the question as to how firms can attract and retain the modern investor.
One of its key findings is that the human touch remains important even against the background of an extended pandemic that has brought travel worldwide to a standstill and consigned many face-to-face meetings between advisors and their clients more or less permanently to the virtual realm.
«Technology has proven it will not replace human wealth advisors, but instead make them more effective and leave clients more satisfied when deployed smartly», the report indicated.
Much in Common
Refinitiv surveyed over 1,500 mass affluent and high-net worth investors across numerous demographics, including gender and age in 13 different countries and they were surprised to find out that clients had more common than generally understood.
When it came to digital capabilities, it said that 72 percent of millennials used mobile apps for account information, higher than the 56% who did the same in the 35-54 age bracket.
Despite that, 64% of those same millennials are willing to pay more for personalized investments and services, far more than the 51 percent in the 35-54 age bracket.
The Importance of the Advisor
Possibly the most surprising finding from the report is that 47 percent of millennials believe that technology will make financial advisors even more important in the future.
«An advisor’s understanding of clients’ emotional needs can’t be replaced with technology,» a high net worth investor was cited in the report as saying.
As a result, it looks like client advisors, bankers and relationship managers don't have to worry about being replaced by a robo-advisor anytime soon. But they should get comfortable with TikTok, Twitter handles - and maybe even selfie sticks.
