Retail Investors Say Technology Has Had Greater Impact on How They Manage Money Than on How They Work, Commute, Watch TV or Travel

October 1, 2018

OMAHA, Neb.--(BUSINESS WIRE)--Oct 1, 2018--TD Ameritrade Holding Corporation (Nasdaq: AMTD) today published “The Tech Effect: How the Digital Age is Changing Investing,” a new research report illustrating technology’s vast impact on everyday life. The survey of 1,000 American investors found that a fifth believe technology’s greatest impact on everyday life has been on how they manage money (21 percent)—almost as many as the one quarter who say it’s been on how they shop (26 percent) and significantly more than those who say it’s been on how they work (15 percent), how they get around (10 percent) how they choose shows to watch (7 percent), and how they travel or meet people (both 5 percent).

Vijay Sankaran, chief information officer of TD Ameritrade, said, “Technology is closely intertwined with how people manage their financial lives, and it’s fundamentally changing their expectations and behaviors. We’re looking at a major shift in what investors expect from their finances because of how technology is being ingrained into everyday life. If you want a tax statement in the middle of the night, for example, you’ll expect to be able to ask Alexa to get that for you.”

Key findings include:

86 percent of respondents say technology makes some of their favorite activities possible; the same number say that if technology can make their lives easier, they want it. Three-quarters (74 percent) say they are excited to try new technologies and almost half (48 percent) call themselves early adopters. Nearly 90 percent say that technology is a part of (58 percent) or critical to (30 percent) managing their finances. The more investable assets they have, the more likely they are to say that technology is critical. Almost half of investors (46 percent) say technology has made managing their finances simpler compared to three years ago. But, millennial investors are more likely than any other generation to say technology has made managing finances more complex (20 percent of millennials vs.14 percent of Gen X and 14 percent of boomers). Investors want more simplicity throughout the investing experience and say they wish that managing finances on their smartphone was as easy as shopping online (44 percent) and getting directions (38 percent).

Investors are looking for tech-driven recommendations Consumers are comfortable with experiences like Amazon and Netflix using artificial intelligence (AI) and machine learning to offer suggestions based on their past purchases and viewing habits, and that familiarity is carrying over to investing:

Most investors say they’re completely fine with technology using previous behaviors and information about them to make recommendations (79 percent). Investors find the recommendations based on their past behaviors useful (with 58 percent saying they’re usually useful and 34 percent saying they’re occasionally useful).

Human vs. Computer Investors’ increasing comfort level with technology means they’re starting to prefer digital solutions for some things, but when they have concerns, they still turn to humans.

60 percent of investors say they trust humans to provide a better investing experience, vs. 40 percent who are more confident in computers.

“Investors are seeing the practical benefits of emerging technologies like AI and machine learning in their personal lives, and our data shows they are eager to adopt them into their financial lives,” noted Sankaran. “And while there’s a heightened expectation for these newer capabilities, our data also shows the continued reliance on human touch. Money is a very personal matter and the combination of empathy and technology will continue to be the ideal solution for most investors.”

About the Study The TD Ameritrade Financial Innovation & Technology Survey was conducted by Logica (formerly Koski) Research and designed to reveal how technology impacts the lives of investors and their desire for future innovations. The study was conducted online among 1,000 U.S. investors between the ages of 18 and 70 with over $10,000 in investable assets. The survey was fielded between January 16 and 25, 2018. The sample was balanced on age, gender, ethnicity, and region.

To view and download the full survey, visit: https://www.amtd.com/files/doc_downloads/research/2018/TDA_FinTech_ebook.pdf   

About TD Ameritrade Holding Corporation TD Ameritrade provides investing services and education to more than 11 million client accounts totaling more than $1.2 trillion in assets, and custodial services to more than 6,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of more than 780,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of nearly 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, or read our stories at Fresh Accounts.

Third party firms mentioned above are separate from and not affiliated with TD Ameritrade, which is not responsible for their services or policies.

About Logica Research Logica (formerly Koski) Research creates and delivers customized research designed to help our clients drive awareness, deepen brand engagement, and facilitate business growth. Logica Research clients include Fortune 1000 companies and leading marketing and PR agencies.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181001005176/en/

CONTACT: TD Ameritrade Holding Corporation

Christina Goethe

Corporate Communications





Jeff Goeser

Investor Relations





SOURCE: TD Ameritrade Holding Corporation

Copyright Business Wire 2018.

PUB: 10/01/2018 08:30 AM/DISC: 10/01/2018 08:30 AM


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