Despite ongoing digital adoption en masse, retention of the human touch remains critical for wealth management clients, according to a study by Singlife with Aviva and EY.
Nearly three-quarters (72 percent) of investors prefer to retain the human touch in wealth advisory services, according to a report titled «Advancing the Art of Advisory: Is Advisory Still Relevant?» by EY and Navigator Investment Services – an integrated investment platform under Singlife with Aviva.
This consists of advisor-led relationships at 35 percent and hybrid relationships – a combination of digital and physical engagement – at 37 percent.
«While the rate of digital adoption has been increasing, the desire for a greater human touch continues to grow in tandem. Our report validates the value of advisory services as a highly trusted source of advice that will not be easily replaced by self-directed, digital investment options,» said Navigator chief executive Akhil Doegar.
Advisor Criteria
In terms of the criteria for the selection of a wealth management provider, respondents said that an advisor that acts in their best interest is the top attribute (34 percent). This was followed by the ability to achieve high returns (21 percent), commitment to ethical conduct (15 percent) and trustworthiness of the recommendation (15 percent). Fees were the least important at 7 percent.
In terms of the point of engagement, many investors said that this would likely occur during major life events such as starting a new business (61 percent), buying a home (60 percent) or wealth inheritance (59 percent).
«We believe that the role of advisory remains paramount – particularly in times of uncertainty,» said EY partner Han Wee Tan. «Financial advisors play important and diverse roles in their investors’ life: as a consultant across life milestones; a confidant during good and bad times; and a sentinel safeguarding them against emotional investment decisions.»
