78% of wealth advisers think robo-advisers threaten their business
A survey has found that 60% of financial advisers would trust a robo-adviser to manage and oversee client assets; however 78% of advisers were found to believe that robo-advisers represented a significant threat to their business in the future. Meanwhile, a separate study has found that three quarters of Gen X and baby boomer investors would prefer an online broker to provide a variety of helpful tools, rather than to primarily give advice. Two-thirds of Gen X’ers and over 50% of baby boomers said mobile trading is “critical,” and many said they already use an investing or trading app at least once a week.
Can't live with them, can't live without them. | pxel66/iStock/Thinkstock

Apparently even advisors trust an algorithm to manage investments. In a recent survey of 134 independent financial advisors, 60 percent said they would trust a so-called robo-advisor to help manage and oversee client assets. And a vast majority (almost 98 percent) said they believed human and robo advisors can coexist together within the industry, according to CLS Investments’ survey. Yet 78 percent of advisors surveyed felt robo advisors were a "potential" to "significant" threat to their business going forward. But at least one robo won’t be around to create problems. Plumvo, a website aimed at helping consumers build and maintain financial plans, emailed users this week to let them know it plans to shut down the site on Sept. 15.

Older Investors Want R2D2, Not C3PO

Are these the droids you're looking for? | Copyright Kevin Winter, Getty Images

The latest StreetWise study from E-Trade provided more evidence rejecting the idea that online financial tools are just for millennials. Instead, E-Trade found older generations actually prefer online tools to in-person advice when it comes to saving for the long term. Three-quarters of Gen X and baby boomer investors surveyed said they would prefer an online broker to be like R2D2, who aids with a variety of helpful tools, rather than like C3PO, who primarily gives advice. What they want is mobile connectivity. Two-thirds of Gen X’ers and more than half of baby boomers said mobile trading is “critical,” and many said they already use an investing or trading app at least once a week.

Bad Week for BNY Mellon

What's next?

First BNY Mellon suffered a computer glitch that erased the prices of 1,200 mutual funds and exchange-traded funds in the midst of the market selloff, and now it is being accused of leaking private client personal and financial information. The leak occurred in the discovery phase of ongoing litigation between the bank and the sons of renowned sculptor Norman Mercer over his estate. The bank released information including client names, account numbers, personal and family financial information, as well as requests for trust distributions and the bank's decisions on each request. Upon realizing they received the incorrect information, the attorneys for the Mercers immediately notified the bank's outside legal counsel. The bank had also previously had another accidental data breach when it released the social security numbers, bank account numbers and financial information about its co-fiduciaries in the Mercer's estate.

People More Willing to Discuss Their Sex Lives Than Their Finances

Discomfort around financial conversations is leading to a lot of outstanding IOUs between friends and family members, according to a new study from PayPal regarding money habits. The survey took a look at 4,000 people in the U.S., Canada, Germany and Australia and determined that respondents were owed an average of $450 per person. More than half of the study's participants said that it's awkward to ask friends or family to pay them back, with 55 percent admitting they felt embarrassed to ask friends or family to loan them cash. “People are more willing to discuss their sex lives than their finances,” said Dr. Ryan Howell, an associate professor at San Francisco State University and an expert on the psychology of spending. “Money is still considered an incredibly private, personal topic for many people due to deep-seated cross-cultural stigmas around money.”

Want The Daily Brief delivered directly to your inbox? Sign up for WealthManagement.com's Morning Memo newsletter.