Connect with us

Investing

Only 5% of UK millennial investors are using robo-advice services as human expertise is till preferred over AI technology, says GlobalData

Only 5% of UK millennial investors are using robo-advice services as human expertise is till preferred over AI technology, says GlobalData

Technology is a relatively new addition within the wealth management industry, from robo-advisors to AI-enabled chatbots. 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.

Digital services provides advantages for wealth managers, as a robo-advisor can reach new demographics such as the mass affluent, as well as offering operational efficiencies through automation of tasks.

Sergel Woldemichael, Wealth Management Analyst at GlobalData, comments, “The UK’s Digital Integration in Wealth Management 2019 conference explored this topic in detail. Needless to say, the wealth managers in the room found joy in the reassurance that the more digitally advanced younger generations will still require human expertise.”

globaldata-2019

Face-to-face communication, among all generations, still reigns supreme when arranging the buying and selling of investments. Email and telephone communication are in second and third place respectively. Meanwhile, only 5% of millennial investors favourrobo-advisors when arranging their investments, with the majority still relying on a human planner or advisor.

Despite all this, traditional wealth managers have experienced multiple recessions and periods of market volatility, proving they are able to weather a storm. With a potential market downturn on the horizon, robo-advisors may not be ready to tackle the risks to client investments that come with it.

Woldemichael adds, “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. Evidently, these digital natives are still seeking a human to collaborate with and gain valuable insight from.”

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now