Millennials like blend of robo and human advice, though skeptical of advice generally

Whether guided by human or robo, many won't act without consulting someone else first

Mar 30, 2017 @ 1:02 pm

By InvestmentNews

Younger investors increasingly prefer a blend of robo and human advice, even though many don't trust computers or human advisers enough to take their advice without consulting someone else first.

According to a survey of 1,300 investors by the professional services firm Accenture, 64% of millennials say they prefer hybrid investment advice over either a dedicated human adviser or conventional robo-advisory services, compared with just 28% of baby boomers. .

Users of hybrids say they like the ease of money management, digital tools, fee transparency, customized services and low-cost products that hybrid models make possible. Still, 52% said they would never take the advice of a robo-adviser without first consulting someone else. And while hybrid customers said they like being able to speak with a human adviser, 38% said they would never take the advice of their adviser without first consulting another source.

More disturbing for advisers, perhaps, is that 72% of investors with a net worth of more than $10 million and 56% of those with a net worth between $1.5 million and $10 million said they believe human advisers don't provide sufficient value — and 69% of millennials say are amenable to receiving investment advice from Google, Facebook, Amazon and other non-financial companies.

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