Overwhelmed by Robo-Advisors? Focus on Humanness

A robo-advisor is any digital platform that provides automated investment and financial planning services conducted by an algorithm and without human supervision.These automated platforms are pulling more investor attention, especially from younger, tech-savvy clients who value speed, low cost, and convenience. According to one survey, 20% of affluent millennials use robo-advisors, compared to only 9% of investors aged 47 to 54. For operations teams and firm leaders, that means facing new expectations: faster processes, fewer errors, and seamless digital experiences. Future projections anticipate a robo-advisory CAGR of 29%, worth $72 billion, by 2032.

But here’s the good news, human advisors still have a major edge. Unlike robo-advisors, your firm can deliver something algorithms can’t: empathy, trust, and personalized service. The firms that win won’t compete by going fully digital. They’ll win by combining smart systems and real relationships.

If your team is looking to deliver scalable, high-touch service that sets you apart, here are three ways to lean into what makes your firm human.

Prioritize Trust and Relationships

Trust is the foundation of a strong client-advisor relationship. Unfortunately, one survey found that half of Americans are more likely to trust robo-advisors than traditional human advisors. Human advisors can combat the growing distrust by focusing on building relationships and showcasing their credibility and uniquely human skills. Robo-advisors are sterile — hands-off. Humans are adaptable and can showcase their skills and expertise by actively listening to clients and showing an in-depth knowledge of their needs.

Trust is demonstrated by understanding clients. Robo-advisors make product and investment recommendations based on algorithms and patterns. Many human advisors leverage the same technological resources, but they add a layer of human emotion and understanding to deliver personalized recommendations. Advisors can also adjust their offerings to meet client needs, such as adding tax or retirement planning tailored to each client’s circumstances.

A study from Vanguard found that 88% of clients using a robo-advisor say they would be willing to switch to a human advisor. Conversely, only 4% of clients using a human advisor said they would switch to a robo-advisor. The lesson? Clients connect with human advisors, especially those who prioritize human connection and things like understanding their goals and active listening.

Teach and Work Through Complex Problems

Financial advisors do more than just manage investments. They also educate clients, help plan their futures, and coach them through major life stages. One of the top things clients look for in an advisor is skills and expertise to help them understand complex financial situations.

Robo-advisors may be able to link to relevant articles, but they can’t teach like humans can. This is especially true for complex financial issues or questions. Advisors can provide context and personalized answers. They can tailor their education approach to each client’s needs.

Successful human advisors empower clients by answering their questions and explaining financial issues. They help simplify complex topics and demystify challenges that may seem overwhelming. By leaning into the educational side of advising and being a valuable resource for clients, advisors can stand out from robo-advisors.

Integrate Human Touch and TechEfficiencies

In today’s technology-driven world, the decision between robo-advisors and human advisors isn’t black and white. Most clients don’t want to rely completely on technology to reach their financial goals, but they also don’t want to rely totally on humans. The best solution: finding a balance between the human touch and the efficiencies of technology.

The wealth management experience for clients is often full of filling out repetitive forms, waiting to have questions answered, and not having an updated or accurate view of your investments. Integrations solve many of those issues and free up advisors' time to answer questions and provide personalized financial advice. Integrations, such as combining forms, utilizing digital signature services, and pulling data from multiple sources into financial planning software, enhance the client experience and provide the convenience of a robo-advisor with the personal touches of a human advisor. Human advisors who can prioritize their human characteristics while creating streamlined technology workflows can gain a strong competitive advantage.  

Advisors who want to offer more human service don’t need to choose between personalization and efficiency. With Hubly, you get both. Whether it’s tracking birthdays, milestones, money movement, or tapping into one of 100+ plug-and-play workflows, Hubly helps your team stay proactive and personal. It allows everyone, from advisors to admin, to support clients in a way that feels high-touch and scalable. You can even schedule service workflows months or years in advance, so nothing slips through the cracks. The result is a consistent, thoughtful experience that gives clients that warm, taken-care-of feeling.

Start your free 30-day trial of Hubly and build the kind of service that clients remember.