Guess who’s switching to robo-advisors?

By Staff | November 10, 2016 | Last updated on November 10, 2016
2 min read

After a rocky time on the markets following Trump’s victory, you may have experienced the fallout, fielding your share of calls from panicked clients.

Read: Nervous about Trump? Here’s what to watch

The upside? That kind of client management is proof positive that advisors need not fear competition from robo-advisors, despite projected market growth of more than US$83 billion for digital advice, reports global research firm Cerulli Associates.

And that growth might come from advisors themselves, as firms embrace digital platforms.

“Traditional financial advice providers [must] view digital advice delivery not as a force that will displace them, but instead as a way to broaden their opportunity to deliver deeper levels of advice to a wider client base,” says Scott Smith, director at Cerulli, in a release. Digital platforms must connect advisors and clients “in ways that highlight the value of advisory services beyond commodified aspects of portfolio management,” he says.

Read: OSC creating Fintech Advisory Committee

That’s key, because investors continue to value advisors who understand life’s complexities. Honesty and “overall relationship” exceed performance as reasons clients are satisfied with their advisors, reveals Cerulli research.

Further, “households’ perceived need for investment advice has increased since last year,” says Smith, in the release, referring to U.S. retail investors. “With ongoing geopolitical turmoil, households continue to seek advice from a professional who can help them manage the turbulent times by focusing on goals and staying the course versus making panicked decisions that will have a negative impact on a portfolio.”

Sounds like a recent day at the office, no?

Also read: Rethink risk tolerance questionnaires staff


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