In a period of rising interest rates, market volatility, talk of recession, extensive central bank action and conflicting signals, the expertise and personal connection of a human advisor provides value to clients. In 2021, following the market disruptions of COVID, a survey found that 26% of Americans said financial advisors were their most trusted source for financial advice, compared with 22% in 2020. That 4% increase put financial advisors at the top of the list, bumping down “Yourself,” which went from 30% in 2020 to 20% in 2021.
Another survey by the Employee Benefit Research Institute found a marked drop in the number of people who relied on online resources and their own research for retirement planning advice, from 35% in 2021 to 29% in 2022, matching those who rely on professional financial advisors (which held steady.)
While robo-advisors and do-it-yourself investing get a lot of press, human financial advisors offer things no digital solution can. Many of these things are more emotionally driven: according to a recent Vanguard report, these include peace of mind, a perception of greater value added to their portfolios, and more nuanced personalized advice and broader financial planning services.
88% of robo-advised clients would consider switching to a human advisor
Earning customers’ loyalty through ongoing client engagement
If you’d like to learn more about how NexJ’s Integrated Advisor Desktop and the Nudge-AI Suite can help you serve your clients better and run your business more efficiently, contact us today to book a no-obligation demo.