Securities Study 2022: Hybrid Advisory Models Are the Future of Retail Investment Advice (Simon-Kucher)

Summary

• Of the 1,071 consumers surveyed in Germany, Austria and Switzerland, 26 percent never used investment advice and don't plan to, while 49 percent make occasional or constant use of advisory services.§1
• 24 percent never sought advice before but would consider it in the future, as would 29 percent of investors under 30 years of age.§1
• 65 percent of customers with an affinity for advice would like proactive investment advice from their financial services provider.§2
• 49 percent of customers with an affinity for advice are dissatisfied with the digital user experience of their investment advice.§2
• 45 percent of customers with an affinity for advice and 64 percent of those with low affinity would like hybrid advisory approaches.§3
• 34 percent of customers would pay a premium purely for digital advice, while up to 55 percent would pay more for in-person advice.§3
• 82 percent of respondents see running costs as a decision-relevant criterion when selecting ETFs and funds, and 79 percent see order fees as key.§3

Key insights

1. Hybrid advisory models are the future of retail investment advice services.§1
2. Face-to-face advice is unscalable, so proactive advice is rarely offered in the retail sector today.§2
3. Banks can learn from robo-advisors: ease of use, intuitive interfaces and a feeling of customization.§2
4. Hybrid advice digitizes the existing advisory process so customers can theoretically go through it online without a personal advisor.§3
5. 59 percent of customers would like to always be supported by the same advisor, while 41 percent could be helped by different advisors.§4
6. Advisors who use hybrid advice solutions invest more than twice as much time in analyzing further customer needs and cross-selling.§4