mans hand writing on avatar filled screen Just five percent of savers studied prefer tech-onlyadvice. (Photo: Shutterstock)

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Financial advisors are worried about being supplanted byrobo-advice, but according to a new study byMDRT, they should instead prepare to share thefield with robos—since consumers want both humans and tech.

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Study results find that while 88 percent of respondents wanttech to complement humans, rather than replace them, 85 percentwould rather deal with a human financial advisor than a robo-advisor.

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However, 95 percent say that human advisors need to be techsavvy and to use tech tools in their practices—so there's nododging the tech bullet.

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Just five percent weigh in in favor of tech-only advice, while36 percent strongly disagree that robos can completely replacehumans when it comes to financial planning.

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And even though 71 percent say that financial planning should behandled by a mix of people and tech tools, only 36 percent wouldtrust a robo to manage their financial plan effectively, comparedwith 83 percent who would trust a human.

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They see the chief advantage of robos as cutting down on humanerror (49 percent), and also cite the cost of humans (47 percent)as a major disadvantage to sticking with a flesh-and-bloodadvisor.

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However, they do worry about potential data breaches from robos(46 percent fear loss of personal data, while 44 percent worryabout financial data going astray).

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With 68 percent relying on advisors for retirement advice, it'sperhaps understandable that 31 percent say human advisors might notmake accurate financial predictions; advisors using software tomodel financial outcomes, the report says, can mitigate thesefears.

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But while 94 percent of respondents say it's at least somewhatimportant that their advisor use software for financial outcomemodeling, just 48 percent say those advisors actually do rely onsoftware.

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There are similar disparities between what clients expect ofadvisors in using cloud technology to store financial plans—80percent expect it, while just 28 percent say it's a reality—and theuse of e-mail and/or social media to improve communication, with 71percent saying it should happen and only 33 percent saying itdoes.

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READ MORE:

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.