NEW YORK, Aug. 25, 2021 /PRNewswire/ -- An
overwhelming majority (96%) of investors who work with a financial
advisor are satisfied (very or somewhat) with their advisor,
according to a new survey of 1,000 U.S. investors released today
from Broadridge Financial Solutions, Inc. (NYSE: BR), a global
Fintech leader.
Of those who do not work with a financial advisor, 44% of all
investors and 65% of the millennial investors say that they are
likely (very or somewhat) to begin working with an advisor over the
next two years.
Of the millennial investors who do not work with a financial
advisor, but plan to, 53% state that they are likely to work with
an advisor due to the concern of not being on track to meet
financial goals. Further, almost half (46%) of all investors who do
not work with a financial advisor, but plan to, state that they are
likely to work with an advisor to reduce financial stress,
demonstrating that working with a financial advisor can help
investors feel more confident about their financial goals and
provide peace of mind.
"The last year in finance has been defined by a high-touch,
high-tech experience, with technology making markets increasingly
accessible. Everyday investors are demanding a say in when and how
they invest and are increasing their focus on financial planning,
especially in the wake of unprecedented market volatility.
Financial advisors now sit at a critical juncture where they need
to directly demonstrate their value by providing client-centric
tools, products and advice," said Andrew
Guillette, Vice President of Distribution Insights, Americas
at Broadridge. "Asset and wealth managers have a prime opportunity
to provide the most up-to-date technology tools and new products to
help advisors meet this shifting demand."
While financial advisors remain highly relevant, preferences for
interacting with financial providers are evolving. Across all
generations, investors indicate a preference for online or mobile
access for financial education, buying and selling investments,
reviewing their financial accounts and day-to-day banking,
illuminating the fact that many investors now seek a digital-first
experience.
Investor-Directed Trading Expected to Increase
Half (52%) of all investors and two-thirds (65%) of millennials
now use a self-directed brokerage account. Self-directed brokerage
account usage is highest among high-net-worth investors (64%),
followed by mass affluent (52%) and mass market (49%)
investors.
Self-directed trading is expected to increase in the next 12
months, with one third of investors planning to increase trade
frequency, while only 5% plan to decrease.
Over a quarter (28%) of investors use both a financial advisor
and a self-directed brokerage account, showcasing investor demand
for longer-term financial planning advice coupled with the ability
to invest on demand. Of these investors, 57% report that they also
use a self-directed brokerage account because they enjoy investing,
while 33% cite diversification.
Self-directed brokerage accounts remain more popular than
robo-advisors, as only 33% of investors are familiar with the
concept of robo-advisors, and only 6% currently use one. However,
demand among younger investors appears high. Among millennials
familiar with but not currently using a robo-advisor, 76% are
likely (very or somewhat) to begin using a robo-advisor in the next
12 months.
Investors Express Positive Outlook Despite Volatile
Year
Sixty-six percent of investors report having a positive (very or
somewhat) outlook about their personal financial situation over the
next year (compared to 13% with a negative outlook), and 39% of
investors feel better (somewhat or much) about their financial
situation today compared to 12 months ago (compared to 17% who feel
worse).
About half (49%) of investors have a positive (very or somewhat)
outlook on the U.S. economy, and 53% have a positive outlook (very
or somewhat) on the stock market for the next 12 months. Sixty-one
percent report that they are open (very or somewhat) to investing
in the stock market.
Methodology
The Broadridge survey was conducted by 8 Acre Perspective to
assess the current sentiment of U.S. investors. A total of 1,000
U.S. investors with investable assets of $10K+ and a household
income of $25K+ completed the survey, which was fielded in April
and May 2021. Wealth tier
definitions: High Net Worth ($1M+ investable assets), Mass Affluent
($100-999K), Mass Market (<$100K). For further details on survey
methodology, please contact a Broadridge media representative.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with $5 billion in revenues,
provides the critical infrastructure that powers investing,
corporate governance and communications to enable better financial
lives. We deliver technology-driven solutions to banks,
broker-dealers, asset and wealth managers and public companies.
Broadridge's infrastructure serves as a global communications hub
enabling corporate governance by linking thousands of public
companies and mutual funds to tens of millions of individual and
institutional investors around the world. In addition, Broadridge's
technology and operations platforms underpin the daily trading of
on average more than U.S. $9 trillion
of equities, fixed income and other securities globally. A
certified Great Place to Work®, Broadridge is a part of the S&P
500® Index, employing over 13,000 associates in 21 countries.
For more information about Broadridge, please visit
www.broadridge.com
Media Contacts:
Matthew Luongo
Prosek Partners
+1 646-818-9279
mluongo@prosek.com
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SOURCE Broadridge Financial Solutions, Inc.