DIY trend seen fuelling demand for advisors

By Staff | February 22, 2022 | Last updated on February 22, 2022
2 min read

As far as financial advisors are concerned, the rise of do-it-yourself investing is just fine. Most expect the trend to boost demand for their services in the long run, Coalition Greenwich reports.

According to the results of a recent study by the data analytics firm, more than two-thirds of advisors believe that the recent growth of DIY investing will have a neutral or positive effect on their businesses.

“Robo-advisory software and portfolio construction tools can suggest asset allocations, but for people not working in the financial markets full time, deciphering what the data suggest can be complicated, scary and, in some cases, emotionally draining. Hence the continued need for financial advisors,” said Kevin McPartland, head of research in Coalition Greenwich’s market structure and technology group, in a release.

Greenwich noted that, while technology has made investing more accessible, “the breadth and depth of investment choices available to individual investors have also created a market structure that is increasingly complex.”

As a result, the firm found that advisors are being sought out by investors for their insight on a variety of issues.

It reported that more than 80% said they discussed inflation expectations and tax policy with their clients in 2021.

Additionally, about two-thirds of advisors said they were asked about digital assets, almost half discussed ESG investments, and a third were consulted on private investments.

Technology has also helped advisors keep up with growing client demands, Greenwich said.

“Financial advisors increasingly feel that their technology is putting them on a more level playing field with institutional traders and investors, allowing them to compete for business based on the strength of their digital offerings as much as their track record,” said McPartland.

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.