‘Vast Majority’ of Consumers Welcome Robo-Advice — Should You?

Better Investing

What's Hot

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

Trump Scraps FHA Rate Cut — What Does It Mean for You?Borrow

Where to Sell Your Stuff for Top DollarAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

8 Tuition-Free U.S. CollegesCollege

10 Overlooked Expenses That Ruin Your BudgetFamily

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

20 Simple Hacks to Make Your Stuff Last LongerAround The House

12 Surprising Ways to Wreck Your Credit ScoreBorrow

Worldwide, 78 percent of consumers would rely entirely on computer-generated guidance for their investing portfolio. But is that a good idea?

The “vast majority” of consumers are now open to receiving automated servicing — or “robo-advice” — for multiple financial products, a recent study from Accenture shows.

For the study, nearly 33,000 consumers across 18 countries or regions were surveyed. Worldwide, as much as 78 percent of consumers welcome robo-advice.

Accenture defines “robo-advice” as “computer-generated advice and services that are independent of a human advisor,” noting that the technology first emerged as an alternative to traditional investment advice.

Examples of today’s investment robo-advisors include Betterment and FutureAdvisor.

Investing is also the arena in which the most consumers are open to receiving robo-advice. The survey found that:

  • For investing, 78 percent of consumers worldwide — and 79 percent of consumers in the U.S. — would use entirely computer-generated support.
  • For insurance, 74 percent of consumers worldwide and in the U.S. would use such support.
  • For banking, 71 percent of consumers worldwide — and 72 percent of consumers in the U.S. — would use such support.

So why do humans prefer computerized guidance over human input? As Accenture puts it in the study, robo-advice “is clearly viewed as a route to greater control over [consumers’] service experience.”

Specifically, the survey found that robo-advice is preferred primarily because of:

  • The prospect of faster services (cited by 39 percent of consumers)
  • The prospect of less expensive services (31 percent)
  • Consumers’ belief that computers and artificial intelligence are more impartial and analytical than humans (26 percent)

If you’ve been considering robo-advice — or are considering it now that you’ve read this — be sure to start by checking out “7 Questions to Ask Before Paying a Robo-Adviser.” The article, by Money Talks News founder Stacy Johnson, breaks down everything you need to know.

If you’re interested in exploring other alternatives to traditional investment advice, also check out “5 Simple Ways to Invest Your Retirement Savings.”

What’s you ever used robo-advice? Share your experience below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 8 Ways to Get Your FICO Score for Free

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,840 more deals!