Covid-19 has accelerated a shift in expectations for investment advice, with 74% of investors now calling for increased human interaction around financial advisory services, according to a new survey
The survey - commissioned by International investment fintech company Diaman - points that as the UK cautiously returns to aspects of 'normal' life, people's views on investment advice have altered and are unlikely to return to pre-lockdown attitudes.
As a result, a new hybrid approach to advice, blending a form of robo-advice and face-to-face could be set to emerge.
67% of investors are calling for a digital experience, but shunning robo-advice for something that also enables interaction with a human advisor.."
In the wake of ongoing market uncertainty, investors are placing more importance on retaining a human-touch within advisory services (74%), with only 9% of respondents saying they want to use a robo-adviser with no human involvement, the study found.
67% of investors are calling for a digital experience, but shunning robo-advice for something that also enables interaction with a human advisor - but without the fees associated with bespoke services, the Diaman study found.
The survey was carried out in the UK between 23- 29 June 2020 by Censuswide and completed by 1,011 respondents who previously had or currently have investments.
According to the majority of UK investors (52%), the disparity between high-cost, bespoke investment services and low-cost, automated advice has grown too big, something that Diaman believes leaves a gap in the marketplace.
Daniele Bernardi, CEO of Diaman, said: "Over the last decade, digital tools have been used to drive down costs for investors, but at the cost of less human interaction, impacting investor returns and risk exposure as a result.
"The global pandemic is acting as a catalyst for the wealth management industry to re-evaluate current advisory services and structures. The findings show that covid-19 has accelerated already shifting expectations among investors, creating further demand for a hybrid approach to investment advice."
The research also shows that lower investor returns have accelerated higher client expectations around advisory fees. When asked what, if anything, are you struggling to get from your current investment adviser right now, fees that reflect value for service was ranked the top consideration (28%).
Diaman is an Italian and Malta-based international WealthTech Company providing investment services to retail and professional clients.
Founded in Venice (Italy) twenty years ago, it specialises in quantitative methodologies, operating from offices based in Italy and Malta.
22% of adults have lost or unclaimed assets
Lowest Q3 payout since 2010