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

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.