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Will the investors of the future ever sit down with a financial advisor or will they rely on their mobile device or computer for investing?
Think about the savvy kid next door who is a gamer and the computer often wins. It’s easy to imagine a scenario when that kid believes a computer will do a better job investing than a human.
To dig into technology’s impact on investing, we asked a sample of 1,000 U.S. adults what they would do if they were given $100k to invest.
Professional advisors still win in our survey, but computers pose great competition.
Almost half (43%) would opt for a professional advisor, 37% would manage themselves, and 20% would trust their money to a computer-based algorithm. The number jumps to 25% when we look at tech-savvy Millennials. GenZ is arguably the generation most trusting of what computers can do, and they are most likely to further disrupt investing. When we ask 16-18 year-old GenZers whether a human or computer would provide better investment performance over time, computers win out 57% to 43%. For older generations, including Millennials, humans still win out—closer to 60:40, humans to computers.
Related: Money Engagement with the New Generation
It seems the marketplace may be poised for even more technology when it comes to investing. Just over a third of the general population claims to love new money management technologies. Millennials are feeling the most love with 54% agreeing that they love new money management technologies.
When it comes to money, people’s hearts are open to change.