Investors Racing Ever Faster to Tech, but They Still Crave Human Advice: Schwab

"People are used to doing everything on their phones, and they expect managing their finances to be as easy as one-click online shopping or hailing a ride share," said Zack Gipson, managing director of Schwab's digital investor solutions, in the statement. 

"This sets a high bar for financial services companies to deliver easy, modern digital experiences that rival digitally native companies consumers trust, while differentiating through seamlessly integrating the best of technology and people." 

Many survey participants said they will continue to conduct a range of financial activities digitally after the pandemic subsides, including using payment apps, online tools and apps to manage personal finances and virtual meetings to connect with a financial advisor. 

In contrast, more than half of respondents said it is very important to have access to a professional when they have questions, or need periodic or ongoing guidance or when the stock market has large gains or drops. 

In fact, 40% of investors said they would seek guidance from a financial advisor over any other resource — e.g,, financial websites, influencers, family/friends — if the stock market should drop significantly. Moreover, investors' trust in a financial firm is also influenced by whether they have access to service in person, such as at a branch. 

A majority of investors in the survey also feel that human financial professionals deal best with complex tasks such as giving financial advice, providing customer support on account questions, understanding an investor's entire financial situation, and creating a personalized investment portfolio or a financial plan. 

Generation Investor

During the uncertainty of the global pandemic and waves of market volatility in 2020, an influx of first-time investors got into the market. Schwab dubbed this cohort Generation Investor. The group accounts for 15% of U.S. stock market investors, according to previous Schwab data. 

The new study affirms that Gen I is a rapid adopter of technology compared with more seasoned investors — i.e., those who began investing before 2020. Seventy-four percent of these new investors think they can have a personal relationship with a financial company by interacting only through a mobile app or online, and they rely on technology to manage their finances in many ways. 

At the same time, Gen I prefers access to human financial professionals when it comes to other aspects of money management, feeling that professionals manage the following activities better than technology: 

• Giving financial advice: 64%.
• Understanding their entire financial situation: 63%.
• Providing support on account questions: 61%.
• Creating a personalized investment portfolio: 56%.
• Answering questions about their financial situation: 56%.
• Creating a financial plan: 55%.
• Doing taxes: 54%.
• Maximizing investment returns: 51%. 

And 83% of Gen I said that when finances become complex, such as when the stock market experiences a significant gain or downturn, they want access to a person to discuss their situation.