Over 50% of Americans in Varying Age Groups Say They are Open to Working With a Remote Financial Advisor in Recent Survey
REDMOND, Wash., March 4, 2024 (Newswire.com)
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In its recent study, ComparisonAdviser found that over 50% of Americans across various age ranges are open to working with a financial advisor remotely. The purpose is to assess clients’ comfort with the rising prevalence of virtual financial advice. Additionally, it may indicate how client and advisor relationships may change moving forward, especially in response to the recent COVID-19 pandemic, which made remote work more prominent. Click this link to access the article: https://comparisonadviser.com/news-and-studies/open-to-remote-study/.
Traditionally, financial advisor relationships require in-person interaction; however, many firms are shifting to a remote arrangement. This allows professionals to work with clients virtually via video chatting, robo-advisor tools, and phone calls, if necessary. And, for clients with fewer assets under management (AUM), this may be their only option, depending on the firm.
In the study, ComparisonAdviser analyzed data from respondents of varying age groups looking for a financial advisor (more information on methodology is present in the study). Unsurprisingly, 78% of people under the age of 30 were open to a remote arrangement. Similarly, 77% of respondents in their 30s and 71% in their 40s were accepting of asynchronous financial advice. According to Sean Canonica, the study’s author, this may be due to “an existing familiarity with technology” and, if an investor is just starting, “the need for cheaper options.”
For respondents in older age groups, the openness to remote financial advice drops significantly but remains over 50%. For instance, 53% of people 60 and over said they would be willing to hire a virtual advisor. While elderly clients are not as accepting of a digital relationship as their younger counterparts, more than half of them are still willing to try it.
Also present in the study is a breakdown of why people may or may not prefer remote financial advice. For some, it could feel less personal, making it harder to build trust. However, the article also points out its convenience. To add multiple perspectives, Canonica added insights from two financial advisors who have experience managing registered investment advisor (RIA) firms, Andrew Bellak and Tyler Meyer, CFP. Meyer also contributed by fact-checking the article for ComparisonAdviser.
Finally, the study adds commentary on the future of financial advice. More specifically, it touches on whether traditional in-person relationships will become obsolete. A key point it adds is that “as younger people who have grown up with increased technology get older, they may be more likely to pursue remote financial advice rather than in-person.” It concludes that, whether as a hybrid or as the primary means of offering financial advice, remote arrangements are going to “stick around” for years to come.
Source: ComparisonAdviser
