March 29th, 2023, Kineree Shah
The financial industry has undergone major technological advancements, offering investors new ways to handle their investments. The emergence of robo-advisors in the US has played a role in this transformation, using advanced AI algorithms to analyze customer data and provide tailored investment suggestions.
A new YouGov survey dives into factors that influence the selection of robo-advisors, enabling brands to gain valuable insights into the current state of robo-advisory services and their potential for future expansion.
Our data shows that only a tiny share of consumers currently use a robo-advisor, while an equally small percentage of respondents have used a robo financial advisor in the past but do not currently use one (4% each). Most consumers are not aware of robo-advisors and are uninterested in using one (55%). However, it is worth noting that a tenth of consumers who were unaware of robo-advisors are interested in using one (10%). This indicates that there is potential for growth in the robo-advisory market by increasing awareness about the service among potential customers.
When it comes to trust, half of Americans who have used a robo-advisor or are interested in using one are more likely to trust a robo-advisor compared to a traditional financial advisor (49%). This suggests that there is a growing acceptance of this technology in the financial industry. A significant proportion are neutral (33%) towards both types.
Among Americans who have used a robo-advisor or are interested in using one, more than half of consumers polled say cost (54%) and security of investment (53%) was the most significant consideration. The level of customer support (41%), reputation of the financial advisor (38%), minimum investment amount (34%), personalized advice (32%), and access to ethical investments (31%) were also some other important factors.
Our findings reveal that brands offering robo-advisory services could benefit from taking a customer-centric approach that emphasizes low-cost and secure investment options to attract potential customers. In related news it may be worthwhile to understand Briton’s perception towards robo-advisors.
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Methodology
YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on 20th to 21st March 2023 with a nationally representative sample of 1,192 adults in the US (aged 18+ years), using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, education, region, and race to be representative of all adults in the US market (18 years or older) and reflect the latest US Statistical Authority population estimates. Learn more about YouGov Surveys: Serviced.