The vast majority of UK investors now want to receive advice with a "human touch" but are concerned about higher fees, according to research collated in the aftermath of the coronavirus crisis.
According to a survey of more than 1,000 UK investors in June, most believed the disparity between high-cost but bespoke investment services and low-cost and automated advice had grown too big.
The research, conducted on behalf of fintech firm Diaman Partners, found the demand for a hybrid advice service was greater than ever before as a result of the market volatility seen at the height of the pandemic.
Of the investors surveyed, 74 per cent now placed more importance on retaining a human-touch within advisory services and only 9 per cent said they wanted to use a robo-adviser with no human involvement.
Daniele Bernardi, chief executive of Diaman, said: "Over the last decade, digital tools have been used to drive down costs for investors, but at the cost of less human interaction, impacting investor returns and risk exposure as a result.
"The global pandemic is acting as a catalyst for the wealth management industry to re-evaluate current advisory services and structures.
"The findings show that Covid-19 has accelerated already shifting expectations among investors, creating further demand for a hybrid approach to investment advice."
When asked about their current adviser, 28 per cent of investors said they struggled to find fees which reflected value for service.
A recent survey of 179 advisers conducted by FTAdviser found a quarter of advisers believed remote contact with clients would account for a significant number of meetings even when life gets back to normal following the pandemic.
In total, more than half of the advisers polled (52 per cent) said at least a quarter of their meetings would shift to remote working even after lockdown measures are fully lifted.
rachel.mortimer@ft.com
What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.
