Envestnet Examines Keys to Unlocking Complicated Financial Relationships

Thu, 28 July 2022  |  financial advice 

Envestnet released the results of its first national study, "The Intelligent Financial Life: The Unexpected Intersection Between Technology, Clarity, and the Human Connection," which was conducted in collaboration with The Center for Generational Kinetics. The study revealed unexpected trends, attitudes, and behaviors that Americans across generations have regarding utilizing financial advisors and new technology to help them achieve their financial goals.

The study offers evidence-based perceptions about what's required to support people's accomplishments. The Intelligent Financial LifeTM is Envestnet's response to the anxiety and confusion investors experience over their finances, and it connects every aspect of their financial lives through an ecosystem of data-driven solutions, advice, intelligence, and technology.

In this paper, the major issues affecting the sector were analyzed from a fresh angle. The survey aimed to comprehend how investors regard each path, where they positively converge, and what that means for the industry, rather than comparing sentiments about technology-only solutions versus engaging with a human advisor.

According to Jason Dorsey, a generations and behavioral researcher and speaker with The Center for Generational Kinetics, LLC, "Americans across generations have a complicated financial relationship and they receive their information from many sources, including family, financial professionals, and technology." "Consumers don't want a "either/or" experience; all of these sources are important. They are using both human and digital resources to piece together their own experience."

The results of the study fell into three groups, demonstrating that American investors and potential investors:

• Strongly feel that their financial well-being is influenced by the human factor. The human element—financial advisers and professionals—remains a crucial and possibly more significant part in developing financial knowledge and earning financial confidence, even though usage and trust of digital financial instruments are expanding. Most Americans surveyed preferred human interaction for managing their personal finances to digital options, and it's noteworthy to see that Millennials share this preference with Gen X and Baby Boomers.
• Are unsure what to do with their money and yearn for clarification. When it comes to how people set up their short- and long-term finances and how frequently they check their net worth, Americans behave differently. Numerous Americans are failing to take steps to arrange their short-term personal finances. According to the study, 39 percent of Americans do not formally manage their short-term personal finances, and shockingly, 20 percent of wealthy Americans do not either. And while 51% of poll participants said they assess their overall net worth on a quarterly, annual, less often, or never basis, 25% have never done so!
• Are strongly established in their use of technology to get money. A growing number of Americans believe that technology can be used to engage with, manage, invest, and understand money. According to a study, 58% of Americans believe that financial apps, including investing apps, money management apps, banking apps, and more, are crucial for helping them reach their financial objectives. And curiously, when taking into account Americans who currently work with a financial advisor, this percentage jumps to 76 percent.

What is obvious is that our sector needs to provide a new digital human experience that is a well-balanced mix of human-centric support from dependable financial professionals, integrated technology engagement via financial applications, and embedded finance, continued Ms. Dugan. "We have a fantastic opportunity to learn what investors of all ages genuinely need, want, and expect will be delivered to help guide them on their journey toward financial wellbeing - allowing them to attain their full financial potential."

Source: Envestnet