https://koskiresearch.com

July 18, 2017

Future of Money: Investing

Humans or Computers: Future of Investing

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.

how people would invest, computer or human

 

Millennials and Gen Z

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. Gen Z is arguably the generation most trusting of what computers can do, and they are most likely to further disrupt investing.

When we also asked 16-18 year-old Gen Zers 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.

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.

how generations feel about money management technology

 

When it comes to money, people’s hearts are open to change.

 

Boost Your Engagement IQ

Koski would love to help you connect with your customers in a ways that sticks.

LET'S ENGAGE

Join the Conversation!

Subscribe to the Koski Research Report