Despite the growing use of digital investment tools, investors continue to rely on human financial advice, according to the latest edition of Cerulli Edge – U.S. Advisor Edition. Even among younger, tech-savvy investors, demand for formal advice remains firm.
Online tools make it easier to track budgets and manage investments, but investors are still reluctant to fully delegate their financial decisions to these platforms. Cerulli’s research indicates that only 25% of investors in their 50s, and just 9% of those aged 70, prefer an exclusively online advisor.
Although younger households are more inclined to opt for digital interaction, only 36% of those who consider online tools essential for tracking their financial goals also prefer exclusively digital advice. By contrast, 46% state that they prefer to have a human advisor as part of their financial relationship.
“Affluent investors continue to value having a trained financial professional by their side with whom they can discuss their plans and goals. In addition, retail investors place great importance on their financial provider having a robust website that allows them to easily access and view their entire financial situation,” commented John McKenna, senior analyst at the consulting firm.
Among the most valued tools, account aggregation stands out as key. This resource, fundamental in financial planning programs for integrating external assets, is considered important by 72% of affluent investors. It is not only perceived as essential to the advisor relationship but is also actively used: 63% of these investors report having used online tools to better understand their financial situation.
Financial advisors who effectively integrate these digital tools, commonly used by their clients, will be better positioned to retain them and strengthen their relationships. “It is essential for advisors to ensure that their technology is comprehensive and easy to use, enabling in-depth conversations with clients and generating actionable and trackable insights,” concluded McKenna.
