Have COVID-19 lockdowns driven robo-advice use?

robo-advice/financial-planning/covid-19/

6 July 2020
| By Mike |
image
image image
expand image

Companies providing robo-advice solutions may be amongst the winners of changing practices resulting from the COVID-19 pandemic, according to new research out of the US.

A survey by GlobalData has revealed that the use of robo-advice has been increasing across all age groups even amongst baby boomers.

It said that in the US, the number of baby boomers using a robo-advisor rose from 7.2% in 2019 to 7.8% this year, while amongst Generation Z, it rose from 13.6% to 16.4%

The analysis said that the appetite for digital investment platforms was clearly on the rise and that it was likely the COVID-19 crisis in the US would prove that electronic advisers could successfully navigate an economic downturn.

GlobalDate Wealth Management analyst, Sergel Woldemichael said the COVID-19 pandemic had put the spotlight on all things digital.

“For example, Wealthfromt saw account openings rise 68% during the crisis, while, from a returns perspective, Wealthsimple’s mutual funds have outperformed traditional Canadian funds,” he said. “Meanwhile, traditional players are seeing significant reductions in assets under management and are playing catchup in terms of utilizing technology to keep their business alive.”

He said lockdown measures had accelerated the wealth management industry’s shift to digital which had benefited robo-advice.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 week 3 days ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

1 month ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month 1 week ago

AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies. ...

2 days 21 hours ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 5 days ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Powered by MOMENTUM MEDIA
moneymanagement logo