Nearly 60 Percent of Americans Expect to Use Robo Advice by 2025 According to New Schwab Report

SAN FRANCISCO–(BUSINESS WIRE)–Charles Schwab has published a new report, “The
Rise of Robo: Americans’ Perspectives and Predictions on the use of
Digital Advice
,” that examines people’s outlook on robo advice, its
potential impact on how they invest, and its impact on the financial
services industry overall. According to the report, the expectation that
robo advice will play a significant role in shaping the investing
landscape spans generations from millennials to baby boomers. At the
same time, most investors also acknowledge the critical role human
advisors will play into the future.

“Robo advice is the ultimate equalizer – it democratizes investing by
improving the process and price,” says Cynthia
Loh
, Charles Schwab vice president of digital advice and innovation.
“But along with all the benefits of automation, the desire to use a
combination of technology and access to a professional when needed is
clear – and that desire is consistent across age groups and types of
investors.”

Key findings in the report include:

  • People see a significant opportunity for robo advice to change the
    way they invest

    • Fifty-eight percent of Americans expect to use a robo advisor by
      2025
    • Forty-five percent of Americans say robo advice will be the
      technology that ultimately has the biggest impact on financial
      services
  • Most people still want a robo advisor that lets them interact with
    a person

    • Seventy-one percent of people want a robo advisor that also has
      access to human advice
    • Among millennials nearly 80 percent want a robo advisor that
      provides access to a person
  • While millennials are the biggest power users today, baby boomers
    see significant appeal in robo advice

    • Nearly half of boomers using a robo-advisor (46 percent) say robo
      advice is perfect for their life stage
    • Forty-five percent of boomers overall expect to use a robo advisor
      by 2025
  • The current snapshot of U.S. robo advisor users cuts across a broad
    range of investor types

    • Sixty percent of current U.S. robo users are millennials; nearly a
      quarter are gen X
    • More than half of robo users are female
    • Current robo advice users are two-times more likely to say
      managing their investments is extremely easy (compared to
      non-users)

The full report is available here.

About Schwab’s Consumer Digital Demands Survey

This report is based on an online study conducted by independent
research firm Edelman Intelligence among 1,000 U.S. general population
adults and 391 robo advisor users over the age of 18 between July 25,
2018 and July 31, 2018. General population respondents were weighted to
be nationally representative based on most-recent U.S. Census data. Robo
advisor users were collected based on mix of natural fallout among
general population and oversample; users were identified through
self-selection of at least one robo advisory platform. The study has a
margin of error of ±3.1% at a 95% level of confidence.

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity. More information is
available at www.aboutschwab.com.
Follow us on Twitter,
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YouTube
and LinkedIn.

Disclosures

Through its operating subsidiaries, The Charles Schwab Corporation
(NYSE: SCHW) provides a full range of securities brokerage, banking,
money management and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC,
www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab
Bank (member FDIC and an Equal Housing Lender), provides banking and
lending services and products. Edelman Intelligence is not affiliated
with the Charles Schwab Corporation or its affiliates. More information
is available at www.schwab.com
and www.aboutschwab.com.

Investment Products: Not FDIC Insured • No Bank Guarantee • May Lose
Value.

© 2018 Charles Schwab & Co., Inc., All rights reserved. Member SIPC.

(1018-87ZU)

Contacts

Charles Schwab
Marianne Ahlmann, 415-667-1115
Marianne.ahlmann@schwab.com

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