Young people – namely millennials – love technology. They don’t care any more about personal service. They’d rather interact with a screen than a person. In particular, when it comes to their finances, they’d rather work with a “robo-advisor” than a human advisor. Right?

Well, not so fast. A recent study illustrates otherwise. The summary article posed this question: “For tech-savvy millennials eager to grow their portfolio and their bank account, robo-advisors seem like a match made in heaven, right?” It answered its own question: “Wrong. We found that, when it comes to their hard-earned money, millennials still want a human-being handling it.”

When you think about the need for your employees to receive the human touch on matters relating to their finances, keep in mind the following findings from a survey of millennials:

  • Traditional advisors are nearly two times more prevalent among millennials than robo-advisors.
  • 62% think robos are more likely to lose their money than human advisors.
  • 69% think humans can get them better returns on their investments than robos.
  • 52% think robos are more likely to make mistakes managing their money.

Despite technology being a major selling point for robo-advisors, only 12% of respondents who use robo-advisors indicated this as a benefit.

This serves as a good reminder of the perils of painting with a broad brush across large groups of employees. It appears that even with a greater dependence on technology, people continue to want to work with people, particularly when it comes to money.

Matt Eickman

Matt Eickman

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Matthew loves to write. He also loves to think, though he’s probably a better writer than a thinker. He does not like to be on camera or in videos. This blog will allow him to write, challenge his ability to think, and, from time to time, test him with video blog entries.
Matt Eickman
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