Financial advisers catering to Indian clients may want to up their game in the next three years, if a survey by the CFA Institute is anything to go by.
Respondents from 15 countries were asked which of the following will be more important to them in three years:
- Having access to the latest technology platforms and tools to executive my retail investment, or
- Having a person to help navigate what is best for me and executive on my retail investment strategy.
Indians voted very much in favour of the former – by a staggering 92% vs 8%.
Still time
Despite the expectation that they will flock to technology, Indian retail investors currently still prefer speaking to human advisers.
Respondents were asked about their preferred source of trusted advice. They were given three options: a human adviser, a robo-adviser, or both are equal.
India marginally pipped several other countries to the post by declaring that 82% prefer a human adviser; while 5% would go the pure robo-route.
The US, Canada and Australia all came in at 81%, while Mexico was 80%.
Mainland Chinese investors were the most divided. Only 34% would prefer a human adviser, while 26% wanted a robo-adviser. The remaining 40% are looking for a hybrid model.
The report, however, notes that the responses indicate that, “in challenging times, there is a visceral need for someone to blame rather than something”.
Have a little faith
The CFA Institute study focused on the concept of trust in financial services.
Of the 15 countries surveyed, Indian retail investors had the most faith in their local industry with 87%. China came second with 69%.
The UAE and South Africa were in joint third with 60% of respondents having trust in financial services.
Those most wary were in Japan (27%).
Trouble to come
Despite this apparent show of faith, 78% of Indians believe a financial crisis is very or extremely likely in the next three years.
This compares with 76% of Emiratis and 67% of South Africans.
Despite their lack of trust in financial services, on 34% of Japanese respondents are worried about a looming financial crisis.
