MARLBOROUGH, Mass.,
Nov. 24, 2020 /PRNewswire/ -- A
recent study released by DALBAR, Inc., entitled Investor
Insights: COVID-19 and Robo Advice, sheds light on digital
advice during the market turmoil of March and subsequent recovery.
The study examined the experiences of 500 investors who engaged a
robo-advisor in 2020, and found that investors were highly
satisfied with their robo-advisor in the wake of the market
crisis.
The study found human advisors were more diligent in terms of
client communication than robo-advisors, but less communication on
the part of robo-advisors did nothing to diminish the trust and
confidence of their investors. In fact, investors with
robo-advisors reported a significant increase in both trust and
confidence based on their experiences during the COVID-19 market
crisis.
"Investors engaged with robo-advisors appear to be a 'show me'
group, focused on higher returns and transparency around
performance. They are not as concerned with the customer service
aspects as those engaged with human advisors, who are held to a
higher standard in some respects in terms of communication," said
Cory Clark, Chief Marketing Officer
at DALBAR. "When you consider the profile of the average
robo-investor, along with the fact that most believe their account
balance is higher today because of the help of their robo-advisor,
it makes sense that trust and confidence would surge as a
result."
The study included investors engaged with firms such as Acorns,
Ally, Betterment, Blooom, Ellevest, E*TRADE Core Portfolios,
Fidelity Go, Financial Guard, SoFi, Personal Capital, Schwab
Intelligent Portfolios, TD Ameritrade Essential Portfolios,
Vanguard Personal Advisor Services and Wealthfront.
To learn more about Investor Insights: COVID-19 and Robo
Advice, email Cory Clark at
cclark@dalbar.com.
DALBAR, Inc. is the financial community's leading
independent expert for evaluating, auditing and rating business
practices, customer performance, and service. Launched in 1976,
DALBAR has earned the recognition for consistent and unbiased
evaluations of investment companies, registered investment
advisers, insurance companies, broker/dealers, retirement plan
providers and financial professionals. DALBAR has produced the
Quantitative Analysis of Investor Behavior ("QAIB") study annually
since 1994.
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SOURCE DALBAR, Inc.