Bringing you live news and features since 2006 

Report finds that investors want the human touch


Cerulli Associates’ latest report finds that a personal connection is still needed for US investment managers to close a sale.

Looking at the rise of the so-called ‘robo-adviser’, the firm finds that using technology to uncover what US investors want is helpful, but personal interaction is needed to close the sale.
"There has been an explosive increase in the attention devoted to the evolving role of technology within the realm of retail investor relationships," states Scott Smith, director at Cerulli. "Virtually all stakeholders, from advisory practices to asset managers to custodians and other service providers, feel the threat of disruption through disintermediation."
Many observers assume that ongoing advances in technology will empower investors to handle their financial affairs without the assistance of traditional financial advisors, Cerulli says. However, the firm believes that while technology innovations will transform how services are delivered, there will be an ongoing, and potentially increasing, demand for personalised advice delivered by humans.
"Since 2010, there has been a continuous stream of developments in the technology available for investors to monitor and manage their portfolios. However, during this period the self-directed investor segment declined from 45 per cent to 33 per cent across all households," Smith explains. "At the same time, those households Cerulli terms 'Advisor-Reliant', who regularly consult with a financial advisor, increased from 34 per cent to 43 per cent."
"We believe that unique elements of financial advice relationships will prove resistant to being cast aside in favour of purely self-service electronic relationships," Smith continues.
"Data can help marketers understand what investors think and want relative to their finances, but wealth managers need to complement this insight with human interaction, predictive analytics, and communication," Smith adds.

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by