NEW YORK, Sept. 13, 2016 /PRNewswire/ -- A new survey released by Investopedia, the web's premier source of trusted financial content, reveals that financial advisors in the U.S. are increasingly incorporating robo-advisory services – automated, algorithm based wealth management advice – and similar new technologies into their practices. The survey of financial advisors throughout the U.S. revealed that 46% of traditional advisors already use or are in the process of implementing a robo-advisory into their practice.
"Robo-advisors and other fintech startups are disrupting the industry and traditional advisors need to adapt to the changing landscape," comments David Siegel, CEO of Investopedia. "A growing number of advisors are already beginning to incorporate new technologies into their practice. We'll hopefully see this trend continue as a growing number of advisors may begin to struggle in an increasingly digital environment."
The Investopedia survey data also shows the specific impact robo-advising has had on the space, however, some advisors remain unconcerned:
- 78% of advisors expect technology to greatly impact their practice in the next five years
- 42% are somewhat concerned that robo-advising will negatively affect traditional financial advisors
- 66% say new technology is greatly involved in their practice
- 54% have no plans to implement robo-advisory service
Despite the growing trend of advisors implementing new technologies, 51% of respondents claim they are still not concerned that robo-advising will negatively affect traditional advisors.
"Most traditional advisors should be concerned about the impact robos and other disruptive technology will have on their business," comments Stephen Rischall, co-founder at 1080 Financial Group. "Technology is rapidly changing the way people invest and manage their finances. Clients should expect more from their advisors and a modern fiduciary approach is a step in the right direction. At 1080, we see clear benefits of using technology in our practice to be more efficient with our time and create a better client experience. Ultimately people value personal relationships. That's why blending smart technology with personal service is the smart choice."
Seventy-eight percent of advisors expect technology to greatly impact their practice in the next five years while less than 2% claimed it will have little to no impact. Twenty-seven percent of advisors stated that they are considering adding robo-advising to their practice or have already begun implementing these capabilities.
Wholly owned by IAC (NASDAQ: IAC), Investopedia is the world's leading source of financial content on the web, with more than 23 million unique visitors and 75 million page views each month. Powered by a team of data scientists and financial experts, Investopedia offers timely, trusted and actionable financial information for every investor, from early investors to financial advisors to high net worth individuals. Investopedia is operated by IAC Publishing, a collection of some of the web's largest and most trusted digital media brands. For the latest in financial news and information, visit http://www.investopedia.com.
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