A recent study by ComparisonAdviser has found that over 50% of Americans, across different age ranges, are willing to work with a financial advisor remotely. This indicates the increasing acceptance of virtual financial advice and may suggest changes in the client-advisor relationship, especially in response to the COVID-19 pandemic. The study analyzed data from respondents of varying age groups and explored their comfort levels with remote financial advice. The article also discusses why some people may or may not prefer remote financial advice and its impact on the future of financial advice.
Traditionally, financial advisor relationships require in-person interactions. However, many firms are shifting to remote arrangements to work with clients virtually through video chatting, robo-advisor tools, and phone calls. This shift is driven by clients with fewer assets under management (AUM), who may not have the option of in-person advice.
The study found that younger respondents were more accepting of remote financial advice. About 78% of people under the age of 30 were open to a remote arrangement, while 77% of respondents in their 30s and 71% in their 40s were comfortable with it. However, the openness to remote financial advice decreased with age, with 53% of people over 60 willing to hire a virtual advisor. Despite the lower acceptance among older age groups, more than half of them were still willing to try remote financial advice.
Finally, the study suggests that younger people’s increased familiarity with technology may make them more likely to pursue remote financial advice in the future. While remote arrangements may not replace traditional in-person interactions, they are likely to become a key part of offering financial advice.
