Practice Management

Disruptors Poised For Success in Retirement Space

Nearly one-third of investors globally say they would switch to Google, Amazon or Facebook for banking, insurance and financial advisory services. 

By John Manganaro editors@strategic-i.com | January 12, 2017
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A new survey by Accenture looking at the investment preferences among global consumers shows seven in 10 people would welcome more robo-advisory services in the areas of banking, insurance and investment advice.

For purposes of the survey robo-advice was defined as “computer-generated advice and services that are independent of a human adviser.”

Important to note, however, is that a large number of consumers still want human interaction for their more complex needs—in deciding how to optimally combine banking, insurance and advice, for instance. It’s a situation that has left firms feeling challenged, facing the task of blending a physical presence with an advanced digital user-experience.

At a high level, consumers globally expect strategies that “seamlessly integrate technology, branch networks and staff to provide service that combines physical and digital capabilities and gives consumers a choice.”

Specific findings show consumers are now open to robo-advice to help determine which bank account to open (71%), which insurance coverage to purchase (74%), and how to plan for retirement (68%). Nearly four out of five (78%) consumers said they would welcome robo-advice for traditional investing, where the technology first emerged.

The Accenture study shows that nearly two-thirds of consumers still want human interaction in financial services, especially to deal with complaints (68%) and advice about complex products such as mortgages (61%).

“We found strong consumer demand exists today for robo-advice in all areas of financial services—banking, insurance and financial advice,” notes Piercarlo Gera, senior managing director, Accenture Financial Services. “While financial institutions may expect to benefit from internal cost reduction by providing customers with a ‘robo’ option, our research found that consumers also expect first-class human interaction. Successful financial services firms will therefore need a ‘phygital’ strategy that seamlessly integrates technology, branch networks and staff to provide a service that combines physical and digital capabilities and gives consumers a choice.”

NEXT: Pursuing ‘first-class’ human interaction