Robo Solutions Lose Out to Human Advisors In Wealth Management Sector Finds Navigator

A recent wealth management survey found that most investors prefer personal advisors over robo and digital solutions.

Navigator Investment Servicean integrated investment platform under its umbrella Single life with Avivalaunched an advisory report in collaboration with stingray (Ernst & Young Advisory Pte Ltd) takes a closer look at the global wealth management industry amid disruptive change.

with title Advancing Advisory Technology: Is Advisory Still Valid?the report examines the major wealth trends that are redefining how financial advisors engage and serve clients, and how they relate to the digital-first era.

As wealth management becomes more and more digital in response to the growth of the affluent youth segment, the changing landscape has resulted in many considerations and opportunities covered by this report. Report highlights include:

young and wealthy new generation

In Asia, the younger generation is expected to inherit $2.5 trillion (S$3.36 trillion) of family wealth by 2030. Due to changing tastes of digitally savvy younger generations and increased competition from self-service digital asset platforms. It’s a question of how much pie is left in the advisory business.

Human contact is still essential

According to the report, 72% of investors are in advisor-driven relationships (35%) and hybrid physical (a combination of both digital and physical) relationships (37%).

This correlates with a 2022 CFA Institute survey, which found that 66% of retail investors consider their primary financial advisor the most trusted source for wealth management advice. This far surpasses online surveys (9%) and friends and family (7%).

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Achill Doegger, CEO, Navigator said: Our report validates the value of advisory services as a highly trusted source of advice that cannot be easily replaced by self-directed digital investment options. These observations bode well for Financial His Advisors, but to remain competitive they need to address significant blind spots to truly enhance their clients’ value propositions. “

Sharpen your advisory skills

Investors said trusting advisors to act in their best interests was the top attribute for choosing a wealth management provider (34%). This was followed by ability to achieve high returns (21%), commitment to ethical behavior (15%) and whether it was a credible recommendation (15%). Fees were the least important consideration (7%) suggesting that investors are actively seeking to engage advisors.

The report also found that investors are more likely to use advisors during major life events. Starting a new business (61%), buying a house (60%) and inheriting money (59%).

Han Wee TanErnst & Young Advisory, a partner at Financial advisors play an important and diverse role in an investor’s life. As a consultant beyond the milestones of life. A best friend in good times and bad. and a sentinel that protects them from emotional investment decisions. Advisory requires dedication, diligence and communication to not only deliver excellent returns, but most importantly, earn the trust of investors. “