An emerging “Generation D” (for digital) is not only embracing technology, but those tools are influencing their relationship with their advisors, a new survey by Accenture found.
Accenture explains that Generation D consists of:
- 27% of all Millennial investors
- 39% of all Gen X investors
- 64% of all Baby Boomer investors
According to the report, members of Generation D are heavy users of digital technology in all aspects of their lives, including their investing habits. Seventy-seven percent use social media more than once daily, and 80% log on routinely for simple services such as online bill pay and other banking services.
The study focused on European investors. It follows up on Accenture’s 2013 Generation D study about the impact of digital tools on the behaviors of U.S. investors.
A New Role for Advisors
While the majority of the investors surveyed still prefer more traditional communication channels when interacting with their advisor, the Accenture report shows that the relationship between Generation D investors and their advisors is evolving into a “counselor” approach as investors become more comfortable conducting their own investment research, rather than the advisor creating an investment portfolio that the client simply signs off on.
Digital Preferences
The survey also showed that digital tools which offer education on long-term goals, retirement planning, estate planning, auto asset allocation and a 360-degree account view are considered “difference makers” that may drive an investor’s decision on which firm to select. Among the high-net-worth investors who were surveyed, a quarter said they would consider switching their institution if they did not receive a desired online tool or service — and 27% of investors say they have already switched firms to receive a new digital tool or service.
The most popular digital tools among investors are those that:
- reduce the cost of transactions and fees (60%);
- improve access to their account (50%); and
- improve access to their advisor (32%).
Regardless of the various digital options available to them, 71% of survey respondents said they prefer face-to-face meetings with their financial advisor, while 68% prefer phone communication over digital and social media channels. More than two-thirds of investors (68%) do not agree that a digital-only relationship with their advisor would be effective.
Accenture commissioned an online survey of 1,200 middle- and high-income, tech-savvy investors located in the United Kingdom, Germany, France, Switzerland, Spain, Italy and Turkey regarding their relationships with financial advisors as part of an integrated quantitative and qualitative study of investor attitudes and behaviors.
