How to hold 1,000 hands: Robo CEOs lay out a stark choice for traditional advisors at MarketCounsel Summit
RIAs who comfort themselves with the thought that automated advice caters to their 'non-core' clients are in for a rude shock
Advisors who provide financial planning advice have stronger value propositions today – tomorrow they will be the ones who survive. And to really thrive advisors will need to adopt robo-technologies for their back office. The AUM model is incredibly profitable and margins will decline because of competition from digital platforms. There are exciting times ahead for advisors who adopt new ideas and adapt their businesses and hard times for those who ignore them and stick by their old way of doing business. There is another good reference to this idea in your review of the discussion among the custodial chiefs and the reference to clients no longer wanting to sit in a meeting and review their statement – they want to review it standing on line for coffee. My additional thoughts here: http://www.theclientdrivenpractice.com/checklistblog/how-to-defeat-the-robo-advisor.html
I wish there would be more discussion around how well these models serve clients. I expect that robos will move up-market over time and I do see them as a force that will change how we do business and a threat to the traditional model. But a very positive threat. Maybe they are showing us a better path, at least for some clients. Who are those clients? Perhaps those the traditional industry is not focused on. Or, maybe those who need a simpler solution. As the algorithms become increasingly sophisticated the robos will move upstream and hopefully change the discussion to what model will provide what client seqments with the highest quality and most appropriate advice. The robos biggest benefit may be that inform us as to the weaknesses of our current models.
We need to change the focus back to serving clients in the best possible ways. Focus on the costs and expenses of doing is important but serving clients needs to come first. If we do that I believe we will grow and become a strong industry.
Jon Stein ousts himself as Betterment CEO and taps Sarah Levy, who joins an exclusive club of top women executives, with a mission -- an IPO
The co-founder of the New York robo-advisor headhunted the ex-Viacom brass through Harvard professors on the down low to ostensibly scale operations.
December 8, 2020 at 5:27 PM
Joe Duran's second RIA act is rocking with eight staff, four co-founders and a conspicuously anti-United Capital concept that will flip RIA stakes 'eventually' as a minority investor
The United Capital founder paradoxically promises to 'passively' buy minority stakes as a backdrop for going hyper-active with quick-strike capability to apply super-consulting and technology to create explosive growth as a prelude to a sale.
November 29, 2023 at 3:23 AM
Joe Duran will co-develop Goldman Sachs unit aimed at outsourcing to non-Goldman RIAs after 'magic' never materialized for direct-to-consumer RIA
The Newport Beach, Calif. RIA legend plans to shift from B2C to B2B to fix Goldman's disconnect with RIAs and play to the strengths for him and the bank
February 8, 2023 at 3:03 AM
Elliot S. Weissbluth, Hightower Advisors mastermind, cashes out and vacates chairman role as Pershing's ex-CEO Lisa Dolly takes a board seat
The Chicago rollup's founder got paid better by doing the second-stage exit and the new cast on the Board also includes Bob Oros ascending to chair and Darrell Horn of Green Square Wealth Management joining
February 19, 2021 at 8:58 PM
See more related moves