Nine in 10 human advised clients say they would not consider switching to digital advice while 88% of robo-advised clients would consider switching to a human adviser in the future, according to research.
Vanguard’s survey of 1,500 US investors who reported having a human adviser, digital service or both, found clients perceived human-delivered advice to add 5% more value to portfolios compared to digital advice which was perceived to add 3% more.
Vanguard Australia’s head of intermediary, Rebecca Pope, said: “It’s evident that clients are deriving significant value from advice and benefitting from the investment expertise and coaching that professional guidance can offer.
“From improving investment returns to achieving individual goals to emotional reassurance, advisers are here to help.”
The study found human and digital advice played different roles with clients preferring the emotional support of human advisers and the tax optimisation and diversification offered by digital advice.
While 84% of human-advised clients were satisfied with their advice arrangements, compared to 77% of those digitally advised, digitally-advised clients reported higher levels of time, willingness, and ability to manage their own investments.
Pope said understanding advice delivery preferences was crucial for Australian advisers, many of whom were time-poor and resource-constrained.
"If advisers can segment their business to understand what delivery method their clients prefer for what tasks, they can then use digital advice to automate particular services to help save time and costs, and ultimately bridge the gap between advice supply and demand”.
The study concluded advisers were not under threat from robo-services as client loyalty to human advisers is durable, and robo-advised clients were open to working with humans in the future.
“Overall, our results provide evidence that human advisers should leverage technology to scale their business while strengthening their uniquely human value proposition to address investors’ emotional needs,” the report said.
Comments
But we are under threat, from politicians and government bureaucrats, who continue to shut us down in favour of robo-sales. Here's another stat - 100% of robo-advisers DON'T VOTE!!!
Well, a review of the profile of the cited person at Vanguard suggests;
- no prior FS experience before Vanguard
- no advice experience, and
- no qualifications whatsoever
So, clearly an expert on the subject matter.
Yeah… I’d say they realised that bringing advice into the market place is going to see outflow from their funds from the IFA market. So their marketing department goes and conjures up a thinly veiled olive branch attempt, meanwhile they actually don’t care about cannibalising the very reason for their inflow in this country. BetaShares must be licking their lips.
This is hillarious.....Concerns my business is under threat by Robo Advice is number 200 on my list of problems. Most Australians have now used that Chat bot, used that App, made that phone call to that Call Centre and are now begging for Human Lead Advice. 5,10 15 years ago I would not have thought the ability to have a Human deal with a firm for you, would be such a valuable commodity that people are prepared to pay thousands and are literally begging me to be their Adviser because they're so frustrated with "robo advice".
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