Charles Schwab has published a new report, “The Rise of Robo: Americans’ Perspectives and Predictions on the use of Digital Advice,” that examines people’s outlook on robo advice, its potential impact on how they invest, and its impact on the financial services industry overall.
According to the report, the expectation that robo advice will play a significant role in shaping the investing landscape spans generations from Millennials to baby boomers. At the same time, most investors also acknowledge the critical role human advisors will play into the future.
Key findings in the report include:
- People see a significant opportunity for robo advice to change the way they invest.
- 58% of Americans expect to use a robo advisor by 2025.
- 45% of Americans say robo advice will be the technology that ultimately has the biggest impact on financial services.
- Most people still want a robo advisor that lets them interact with a person.
- 71% of people want a robo advisor that also has access to human advice.
- Among Millennials nearly 80% want a robo advisor that provides access to a person.
- While Millennials are the biggest power users today, baby boomers see significant appeal in robo advice.
- Nearly half of boomers using a robo-advisor (46%) say robo advice is perfect for their life stage.
- 45% of boomers overall expect to use a robo advisor by 2025.
- The current snapshot of US robo advisor users cuts across a broad range of investor types.
- 60% of current U.S. robo users are Millennials; nearly 25% are Gen X.
- More than half of robo users are female.
- Current robo advice users are twice as likely to say managing their investments is extremely easy (compared to non-users).
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