Top 3 Consumer Concerns About Financial Advisors

As technological advancements make their mark on the insurance industry, robo-advisors are becoming increasingly popular. To gauge consumer interests and concerns about working with robo-advisors versus human advisors, MDRT surveyed more than 1,100 U.S. adults who reported using human or robo-advisors.

Based on the survey results, the top three concerns when working with human advisors are: security breaches, inaccurate assessments, and response time. These findings shed light on what consumers would like to see when working with human advisors and how advisors can help proactively combat these potential concerns.

#1 Concern: Security Breaches
One of consumers’ main concerns when working with human advisors? Security. 37% of American consumers are anxious about personal or financial security breaches when working with humans. Robo-advisors are equipped with built-in cyber security tools, allowing consumers to feel more comfortable sharing their personal information.

It’s important to ensure that the information your clients share with you is not at risk. The remote environment has made financial advisors and their firms a target for hackers, as they are privy to a great deal of sensitive information. According to an IBM study, finance and insurance was the second most attacked industry in 2021, with 22.4% of attacks across all industries. Decreasing that vulnerability is imperative, so advisors should utilize cyber security tools, such as two-factor authentication, cloud technology, and encryption tools to protect clients’ information.

According to another MDRT survey from 2019, 80% of consumers want their advisors to use cloud technology for storage, yet only 28% of respondents had an advisor who used it. Utilizing more cyber security measures will help establish trust in your practice – and proactively communicating these changes to clients will reassure them that you’re taking the necessary precautions to keep their information confidential.

#2 Concern: Inaccurate Assessments
35% of Americans are worried about the accuracy of their financial assessments when working with human advisors. There’s a lot of detailed information that goes into a financial analysis, leaving room for advisors to overlook or lose data. The eliminated risk of human error when using a robo-advisor may lead consumers to believe they’re getting a more precise evaluation of their finances, even when that may not be the case.

To minimize the possibility of making mistakes during a financial assessment, advisors can reduce hands-on computations via the use of financial modeling software. According to the same 2019 MDRT survey, 94% of consumers want their advisors to use financial modeling software, but only 48% of respondents’ advisors did.

There are various types of financial modeling software available that can be tailored to the task at hand. For example, you can use a software that provides fast, accurate calculations of complex figures to determine clients’ financial needs. These types of software, such as MoneyGuidePro, can hold limitless data and refine the accuracy of analyses.

#3 Concern: Response Time
Clients often have financial needs that require immediate attention – but human advisors cannot always guarantee they’ll be available. In fact, 32% of Americans are concerned they won’t receive a quick response from human advisors. While advisors can’t be available 24/7, robo-advisors offer round-the-clock assistance.

To help service your clients at their convenience, provide them with an expectation of your daily availability via an online scheduling platform, and recommend that those with a robo-advisor utilize it when they need assistance outside your hours. The 2019 MDRT survey found that 72% of consumers want their advisor to use online scheduling platforms to easily book an appointment and access availability. Using a platform like this can allow clients to get their needs met at their leisure with robo-advisors and refer to you when you’re available. Instead of viewing clients’ robo-advisors as a threat to your practice, consider them an opportunity to help serve your clients at any given time.

Technological advancements within the insurance industry are creating the foundation for advisors to reach new heights in their careers. Giving clients the reassurance that their information is protected with cyber security tools, and providing them with faster, more exact assessments with new software will bolster your credibility. By implementing relevant tech into your practice, you can increase your efficiency and provide your clients best-in-class service.

Article provided by MDRT. For more information, visit and follow them on Twitter at @MDRtweet.