Robo-Advisors gain popularity with High-Net-Worth investors
May. 09, 2016
The majority of affluent and high-net-worth individuals recognize the potential of robo-advisors and automated investment services to add value to their wealth management services. This is a main finding of MyPrivateBanking’s recent quantitative panel survey report “Investors’ Attitudes towards Robo-Advisors – Evidence from the US and the UK", with insights from 600 affluent and wealthy investors in the US and the UK. The report analyzes in depth the views and opinions of individual investors with regard to the robo-advisor topic. Besides exploring investors’ attitudes towards specific features of online investment platforms, the survey tests brand awareness and the target market’s level of openness towards innovation in this field. In addition to the comprehensive analysis all results are detailed in extensive data appendices.
High-net-worth individuals use online investment tools more than other investors
More than 70% of overall respondents think that such tools can positively influence their wealth manager’s advice and decision-making process and that automated advice potentially speeds up onboarding processes such as registration and account opening, making these processes more efficient and convenient. This underlines how the young and the wealthy are especially showing a great openness, awareness and knowledge about robo advice.
Interestingly, the adoption of automated wealth advice is happening faster in the high-net-worth segment than mass affluent with current usage of online wealth management tools at 43% and 17%, respectively. The report also identifies the major concerns investors have in respect to robo-advisors and how the respondents rate the quality of human advice compared to that of robo’s.
UK and US Investors are both open to robo-advice, but differ in their sensitivity to price
Overall, investors on both sides of the Atlantic show strong similarities in their awareness and openness towards automated / robo advice, which are detailed in the report. Despite the trends both countries have in common, some striking differences were also observed. Among them, this includes the finding that UK investors would pay more for robo (and human-only) advice and in the US, a much higher share of respondents state that they don’t think they will use robo advice tools in the future. The report identifies the price point investors would pay and also the various levels of brand awareness current leading robo-advisors have with investors in the US and UK.
Wealth management industry’s future will be in automated advisory services
The report provides clear, empirical evidence on why automated advice and robo services are a significant part of every wealth manager’s future. It shows how automation can enhance client satisfaction throughout the different stages of the advisory process and which channels investors like to use to contact their wealth managers. The report also identifies the most important value-added services investors would like to see in a robo-advisor tool and to which target segments automated services appeal most.
About the Report:
The report “Investors’ Attitudes towards Robo-Advisors – Evidence from the US and the UK” identifies and analyzes in depth the views and opinions of individual investors with regard to the robo-advisor topic. Besides exploring investors’ attitudes towards specific features of online investment platforms, the survey tests brand awareness and the target market’s level of openness towards innovation in this field. The report is based on a a quantitative panel survey launched in March 2016, targeting mass affluent, affluent and high-net-worth individuals in the UK and the US, with a total of 600 randomly selected participants. More information on the report you will find here.