Our new report on investors’ attitudes towards robo-advisors is based on a survey covering (mass-)affluent and HNWI in the UK and the US. The 600 respondents answered questions with regard to their awareness of robo advice, benefits and risks of automated investing, awareness of existing players and many others.
One of the main findings is that investors are generally very open to the new technology as more than 70% believe that automated advisory tools can positively influence their wealth manager’s advice and decision-making process. Particularly when it comes to onboarding processes, investors see huge benefits in automated online tools – 74% think that the technology is likely to speed up registration and, hence, lead to an increased efficiency and convenience.
Similarly encouraging, investors’ awareness of the robo technology is surprisingly high: 45% of the entire sample already heard or read about the concept of robo-advisors and 20% state to know quite a lot about it or even know it in detail. At the same time, the share of people saying that they don’t think to be using robo advice in the future is 20%, which is mainly driven by the older age segment with 55 years and above. Interestingly, the share of the hesitant appears to be more than twice as high in the US (28%) than in the UK (12%).
In the US, the largest share of respondents selected Charles Schwab Intelligent Portfolios as the brand they associate most with robo advice (43%) while in the UK, it is Nutmeg that leads the field, with the same share. This is quite interesting since original robo providers such as Betterment (18%) or Wealthfront (13%) seem to be far less known – this is a strong sign that it is a lot easier for established wealth management brands to promote their automated services.
Our new survey report elaborates on these and a lot more findings that draw a very clear picture of wealthy investors’ adoption of the robo advice technology. In addition to the general results, the report describes the main differences among the two focus countries, UK and USA, different wealth segments (mass affluent, affluent, and high-net-worth) as well as different age segments in order to derive valuable recommendations and learning points dedicated to wealth managers’ target client groups.