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

Better Investing

What's Hot

2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

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

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

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 2,053 more deals!