Only five per cent of UK millennial investors use robo-advice services, with human expertise being preferred over AI technology.
Results from GlobalData’s recent ‘UK Investors Survey’ showed face-to-face communication is the primary method for arranging the buying and selling of investments.
Using an independent financial advisor is the most preferred method, accounting for 37 per cent, with a financial planner with their main bank/financial institution accounting for 27 per cent.
Wealth Management Analyst at GlobalData, Sergal Woldemichael said digital services provided advantages for wealth managers, but pigeonholing millennials as the digital generation isn’t accurate.
“Robo-advisors can reach new demographics such as the mass affluent, as well as offering operational efficiencies through the automation of tasks,” Woldemichael says.
“However, our survey data shows that the vast majority of the more digitally advanced younger generations still require human interaction and expertise before they will make an investment decision.’’