When it comes to financial advice, Millennial investors are hesitant to put complete faith in human advisory services, preferring instead to go with a hybrid model, which includes a combination of digital tools and human advice, according to a survey from Accenture.
Indeed, Millennial (21-35) investors are more than twice as likely than Baby Boomer investors (52-70) to say they prefer hybrid advice (64% vs. 28%) and three times more likely than Boomers to say that they would never take the advice of their advisor without first consulting another source (52% vs. 18%). Indeed, our in-depth report on Millennials and financial services also reveals their greater willingness to use a robo-advisor and social networking platforms to manage their finances and investments than any preceding generation.
Young adults in this age bracket are also receptive to getting advice about money from non-financial companies such as Google, Facebook and Amazon (69%). A separate study confirms these findings, revealing that Millennials would consider such companies for banking, insurance and investment offerings.
Robo-advisors are generally perceived as a great supplemental, but not primary source of information. While more than half of the investors surveyed said they were pleased with the advice offered by their robo-advisors, almost as many said they would never rely solely on the advice of their robo-advisor and would consult another source as well. This reluctance to trust robo-only advice explains the popularity of hybrid advisors.
Hybrid advisory services attract investors through their multitude of benefits, including ease of money management, transparency of fees, low cost, customized services and digital tools. Investors who use hybrid services are also almost 50% more likely than others to be proactive about seeking assistance on financial planning.
About the Data: Accenture conducted an online survey of 1,354 active investors in the US (1,082) and Canada (272) in the fall of 2016. Respondents were between the ages of 21-70, across various levels of net worth and evenly split by gender.