According to a recent survey conducted by Voth Nixon Group financial advisors are almost equally divided regarding their opinions on the subject of digital advisors.
The survey polled financial consultants’ points of view regarding so called ‘robo-advisors’ in an attempt to find out if they are perceived as a threat or if they would prove to be useful and even complement the trading efforts of their human counterparts. Surprisingly enough only 21% of advisors believe digital advice would prove to be beneficial in their endeavors.
“It comes as no surprise that even our industry falls under the influence of a digitized world that seeks faster and better solutions” says Abigail Nixon, Managing Director of Voth Nixon Group “While most advisors are knowledgeable regarding automated and digital advice the truth is that only a small number are making use of this technology which can prove beneficial in automating low-value tasks and thus broaden their reach and worth”.
The study also found that approximately one quarter of advisors consider digital advice to be irrelevant to their occupation while 28% of those surveyed consider it to represent competition. Interestingly enough younger advisors consider this technology to represent competition while the older generation does not consider it to be as much of a threat to their practice.
As a general theme pricing was the factor most commonly cited as the most threatening aspect of digital advice. Approximately 60% of advisors believe that the low cost of such technology can prove to be problematic to their occupation.
“While the results suggest that half of those surveyed are concerned for their jobs as technology continues to develop at a very fast pace this can also be simply attributed to age and experience. The 25 to 35 age group view it as more of a threat while industry veterans seem to be more confident that it cannot replace human advisors and even consider it beneficial in complementing their efforts” added Abigail Nixon.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us. We understand the financial challenges that make it difficult to achieve your targets, and we’re qualified to provide the assistance you need. We believe your financial progress, regardless of your present situation or economic condition is achievable.
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