IW Capital: Human advisers trump Robo-advisers
19 June 2018 London
Image: Shutterstock
Investors retreat from e-investment platforms in favour of human advisers, a report from IW Capital has revealed.
The report by IW Capital, the debt and equity investment specialist, gives insight into the sentiments of investors, as well as consumers.
Titled ‘Investments in 2018: The Human Factor’, the report contains data, which represents 30.6 million investors nationwide, and 89 percent of that number (27 million) chose not to use the technology.
Over half of the sample (56 percent) said this is because they need human interaction to feel safe about an investment of any sort.
Of those asked, only 11 percent of investors said they would use robo-advisers in the future, and 38 percent of investors said they would not trust an online wealth manager to manage a proportion or all of their investable assets, the report found.
Other findings from the report revealed that almost a quarter of those surveyed have investable assets, but would seek financial advice from a person as opposed to an online wealth management platform, as they do not feel confident in the latter with their money.
Additionally, 17 percent of investors said that their risk appetite had increased in the last decade and did not feel online wealth managers would fulfil anticipated returns as they deemed them to be low-risk, the report revealed.
Meanwhile, 53 percent of respondents thought financial advice from a human was invaluable, as confidence in financial decisions are relationship based just as much as they are figures backed.
According to the report, only 9 percent of respondents intend to use robo-advisers over the next five years.
The report by IW Capital, the debt and equity investment specialist, gives insight into the sentiments of investors, as well as consumers.
Titled ‘Investments in 2018: The Human Factor’, the report contains data, which represents 30.6 million investors nationwide, and 89 percent of that number (27 million) chose not to use the technology.
Over half of the sample (56 percent) said this is because they need human interaction to feel safe about an investment of any sort.
Of those asked, only 11 percent of investors said they would use robo-advisers in the future, and 38 percent of investors said they would not trust an online wealth manager to manage a proportion or all of their investable assets, the report found.
Other findings from the report revealed that almost a quarter of those surveyed have investable assets, but would seek financial advice from a person as opposed to an online wealth management platform, as they do not feel confident in the latter with their money.
Additionally, 17 percent of investors said that their risk appetite had increased in the last decade and did not feel online wealth managers would fulfil anticipated returns as they deemed them to be low-risk, the report revealed.
Meanwhile, 53 percent of respondents thought financial advice from a human was invaluable, as confidence in financial decisions are relationship based just as much as they are figures backed.
According to the report, only 9 percent of respondents intend to use robo-advisers over the next five years.
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