How your peers view robo-advisers

In a study set to publish in the coming week, InvestmentNews Research, in partnership with BlackRock, surveyed over 400 advisers with the goal of identifying what separates the largest, fastest-growing firms from their peers on a host of issues affecting their businesses today.

In the report, titled “The Study of Elite RIAs”, there is a focus on adviser technology and marketing, as well as their intersection within the context of the recent upswing of the robo-advice model. Below, in a preview of the results, is how advisers responded to some of the most critical questions surrounding the robo-advice trend.

(Related read: Robo-advisers want to plan your clients’ future)

What would be your primary reasons for offering robo advice services?

Overwhelmingly, attracting a new segment of clients is the main reason advisers would offer robo-advice. This is a nod to the fact that the typical advisory client won’t be the primary beneficiary from robo-advisers — the young, burgeoning affluent will be. With so many robo-advisers and online investment platforms popping up, advisers also noted that a robo-advice offering would keep them competitive.

When it comes to my practice, I view the emergence of robo-advice technology as primarily:

Advisers are still grappling with how robo-technology will affect their businesses. While many advisers recognize robo-advice platforms as an opportunity – primarily as a marketing tool to attract clients – a surprising number said the new technology will have no impact on them.

Select the following statements with which you agree.

Many advisers said they believe they can demonstrate their value compared with robo-advice by providing more customized support for their clients. When it comes to complex, holistic wealth management, technology can support – but cannot replace – the value a human adviser provides. Nearly half of advisers were confident that if their clients were asked to identify the benefits of their services compared with that of a robo-adviser, they would be able to do so.

Source: InvestmentNews/BlackRock Study of Elite RIAs. A survey was distributed to InvestmentNews’ audience between February 6, 2015 and March 18th, 2015, receiving 410 completed survey responses. The data in the charts above consists of the 367 responses from the traditional advisory channels of wirehouses, independent broker-dealers, regional brokerages, RIAs and hybrid firms. The findings of this survey may be accepted as accurate, at a 95% confidence level, within a sampling tolerance of approximately +/- 3.4%.