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Mixing it up: Report Finds Preference for Robo-Human Advice

A new report by DST kasina, LLC, finds that investors prefer some human perspective to go with their robo-advice – and by a striking margin.

According to the report, “Preparing Distribution Organizations For Digital Advice,” investors prefer a mix of human and digital advice over pure digital advice by a margin of 11 to 1, and that mix over purely human advice by at least 3 to 1.

The report also finds that while 65% of advisors see robo-advice as a technology that will endure, at least 73% of them need some level of guidance before they can participate in the benefits of digital advice.

According to the report, although some asset managers have bought, developed or invested in a robo-advisor, most have no digital advice strategy, potentially ceding control of the robo-advice conversation to more proactive competitors.

The report’s authors claim that most advisors are unsure or anxious about the impact of robo-advice on their business. Consequently, they opine that distribution teams that lead the robo-advice discussion with advisors will set themselves apart as subject-matter experts, while strengthening their relationships with their distribution clients in the process.

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