UK millennials are embracing robo-advice more enthusiastically than their counterparts around the world, placing almost as much trust in the online channel as face-to-face advice.
According to Legg Mason Global Asset Management’s 2016 Global Investment Study, which surveyed more than 1,000 investors aged between 18 and 39, young UK investors are the keenest globally on online advice solutions.
In total, 85% of UK-based millennials in the survey said they were comfortable with robo-advice, while 80% said they would trust their advice, ahead of all other investors around the world (except US Millennials – 82%). On average, 59% of millennials globally expressed comfort with robo-advice, with 63% trusting it; within Europe, 70% were comfortable with robo-advice, with 65% trusting it.
Overall, professional financial advisers scored more highly among UK millennials (with 91% feeling comfortable with their financial adviser, and 88% having trust in them), although the narrow gap between the different channels shows the extent to which robo-advice is taking off among the younger generation.
Adam Gent, Head of UK Sales, Legg Mason Global Asset Management said: “Robo-advice remains a relatively new concept in the UK compared to the US, where it is more established, but the levels of support for this new advice channel suggests it is far more than a passing fad.
“Indeed, with such trust being placed in online advice by younger investors, many of whom will have grown up with the internet, it would appear the future looks bright for robo-advisers as they seek to establish footholds in the UK advice market.”