what robo-advisors can teach us about focusing on the client
TRANSCRIPT
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What Robo-Advisors Can Teach Us About Focusing on the ClientBy Craig Iskowitz, CEO, Ezra Group, LLCOriginally posted on wmtoday.com
+ This is a summary of a TechOps Track Session titled, "Empowering Advisors: Delivering Tools that Support Today’s Client Needs" from theMoney Management Institute's 2014 Fall Solutions Conference.
The discussion was focused on by the threat of robo-advisors, areas where they have succeeded and how firms need to change to meet this challenge to the industry.
+Panel Members
Moderator: Gary Jones, Senior Director Financial Services at Collaborative Consulting
Vilas Mhatre, Managing Director at Morgan Stanley Wealth Management
Eric Lordi, Head of Cross-Platform Development at Barclay's
Heeren Pathak, Chief Technology Officer at Vestmark Mike Everett, VP, Business Development at MyVest
+Client experience should be the number one concern Robo-Advisors provide
simple solutions that clients understand
Traditional advisors try to sell complex programs and have to spend too much time explaining them
Online firms have received over $100mm in funding to build elegant and easy-to-use products
+Client experience should be the number one concern Baby Boomers are
currently retiring, but are mostly uninterested in their advisor’s technology
Millennials are just beginning their careers, but have different expectations about how advisors should interact with them
+Consumer technology has changed client expectations 24/7 online communication
has become ubiquitous Technology savvy investors
expect advisor communications to work like Facebook, Twitter, or Instagram
Advisors who wanted to own all client contact ten years ago, now are clamoring for online access
+Starting with a clean slate has its advantages Robo-advisors have an
advantage because they have no legacy infrastructure to support
They believe that client experience trumps investment proposition
Their new websites provide a better experience in terms of online and offline presentations of data
+Held-away assets must be part of the mix Firms must be able to
bring in assets wherever they are custodied in order to deliver holistic advice
A 401(k) plan can be a major portion of client’s retirement strategy, but if there is no visibility into external holdings, the advisor cannot include it
+Scalability is table stakes – necessary to stay in the game Scalability requires
advisor processes that require just a few mouse clicks to complete
Third party investment systems can provide scalability, for a price
A consolidated wealth management platform is something all firms should be investing in
+The low AUM client segment has tremendous potential Traditional investment
firms should not surrender the low AUM space to robo-advisors without a fight
Betterment recently partnered with Fidelity and launched an institutional product for RIA's who want a turnkey solution for low-touch, online clients
This year, Millennials passed Baby Boomers as a percentage of the working age population
+The low AUM client segment has tremendous potential Traditional investment
firms should not surrender the low AUM space to robo-advisors without a fight
Betterment recently partnered with Fidelity and launched an institutional product for RIA's who want a turnkey solution for low-touch, online clients
This year, Millennials passed Baby Boomers as a percentage of the working age population
+Thanks!
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