Despite being comfortable getting financial advice from robo advisors, the majority of Americans still want to consult a human, the latest Consumer Digital Demands report by Charles Schwab has found, according to WealthManagement.com.
Americans Prefer Humans for Most Tasks
The survey of 1,000 people, 391 of whom were using robos, found that 57% of respondents were comfortable with automation or a mix that included some interaction with humans when it came to day-to-day finances, according to the publication. However, when creating a financial plan or managing an investment portfolio, the majority of people wanted a human to play a role, WealthManagement.com writes. This wasn’t unique to finance, with 75% of respondents preferring more human assistance in surgery, 74% for driving a car, 73% when diagnosing a major health issue and 66% when flying a plane, the publication writes.
The report shows the importance of the human element, with “easy access to human customer service” being the second most important driver of trust for apps and online digital experiences, according to WealthManagement.com. In fact, 86% of those surveyed said that they favor brands that make it easy to contact a real person, the publication writes.
The only deciding factor found to be more important was ease of use, which is critical considering that Americans want financial planning to be “as easy as booking a hotel,” despite thinking that it is “at least as hard as training for a marathon,” WealthManagement.com writes.
Recently, traditional wealth managers and robo advisors have started to overlap in an attempt to stay abreast of consumer demand, according to the publication. Betterment, which began as a robo, now connects clients with human advisors. InvestmentNews writes. On the other hand, Betterment’s chief marketing officer was recently hired by Morgan Stanley, which is still investing heavily in both its digital solutions and traditional wealth management, WealthManagement.com writes.
