Tue, 09 March 2021 | technology
An Edward Jones survey on the digital client experience showed that 95 percent of the investors polled feel it's important that their financial advisors use the latest technology and tools when advising them. The financial-services firm's survey of more than 1,200 investors analyzed the impact of technology on financial advisor selection and in creating a financial strategy.
Despite the digital shift brought on by the COVID-19 pandemic, more than four in five respondents (83%) noted they would prefer to work with a human financial advisor, compared to just 17% who say they would prefer consulting a robo-advisor. Of those respondents who consult a financial advisor, 43% consult a human financial advisor vs. only 9% that consult a robo-advisor.
"Human-centered relationships are at the core of our business," said Frank LaQuinta, Chief Information Officer at Edward Jones. "State-of-the art technology is critically important to support the relationship and experience between our clients and branch teams. When we asked clients and investors about what they wanted out of technology they told us they wanted to know if they are okay, how did they get to where they are and where are they headed. "
Like other financial firms responding to investors' growing acceptance of technology in their financial relationships, Edward Jones announced a suite of new and enhanced tools to help clients track their financial goals. The new tools include improved communication with their advisor, linking to non-Edward Jones accounts, and managing money transfers, bill paying and depositing checks.
Many investors are seeking a human financial advisor who can leverage the latest tools and technology as part of the financial advisor relationship. Thirty-three percent of survey respondents noted that they work with a financial advisor to manage their overall financial health, while one in four respondents (23%) noted they do so to track financial health and to make sure they are meeting financial goals.
Investors across the board noted the importance of the latest financial technology and tools, including:
"Clients are looking for a financial advisor to be a guide, someone who can understand them and help them achieve their financial goals," LaQuinta said. "As clients' and investors' expectations change, technology will play an important role in supporting the evolving health, family, purpose and financial needs – helping them feel informed, understood, secure and in control about their future."
In 2020, Edward Jones announced a $500 million, multi-year investment into its digital transformation and the roll-out of new financial advisor tools to work with clients and prospective clients. The firm also ranked No. 5 in KPMG's U.S. customer experience excellent report.
Source: Edward Jones