RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

Bill Crager: I've got your back against the attack of the killer robo-advisors

Bringing the wood at the Envestnet Advisor Summit, the president allows that online advisors are crackerjack at providing account views 24-7 but human advisors can close that gap

Author Lisa Shidler May 16, 2014 at 2:57 AM
Admin:
no description available
Bill Crager: We're not going to be a robo advisor. We're not going direct to consumers.

Syephen Winnks

Syephen Winnks

May 19, 2014 — 6:47 PM

What Bill is saying is EnvestNet will not compete directly with advisors yet, to stay competitive, EnvestNet will advance modern technology that will electronically manage values and portfolio detail in real time that is otherwise not humanly possible to manage. There is no denying the human three dimensional limitation to reason, thus modern technology is the only way to manage an unlimited number of custom portfolios which incorporates important technologies (that also drive robo advice).

Utilizing advanced technology Envestnet will empower brokers to address and manage a broad range of investment and administrative values in greater detail with a far higher degree of technical competency than is humanly possible which minimizes any competitive Robo Advisor advantage. Yet cost will be a major factor which can only be mitigated through a more modern approach to portfolio construction. The days of expensive retail package advice products which do not constitute individualized advice required for professional (fiduciary ) standing are numbered in a highly competitive marketplace.

Envestnet will not compete directly with advisors as a robo advisor, but it will afford all the technical, cost and pricing benefits of robo advice.

SCW


Related Moves

Envestnet shares popped -- up 8% today -- after Wall Street filtered out bad news and staked its bet on confidence in a new team

The Berwyn, Pa., firm sugar-coated nothing but ended up with a sweet stock price result as analysts see good outweighing bad.

February 24, 2024 at 3:33 AM

Bill Crager is dropping CEO role after multiple shoes dropped; the company insists it was his 'decision' but vision, Yodlee future uncertain

The co-founder of the $5.3-trillion AUA outsourcer of software and investments was pressed to take the job under the most adverse circumstances, then second-guessed by stakeholders as he managed the cards he was dealt.

January 9, 2024 at 4:09 AM

Bill Crager makes critical hire of 'step back from the numbers,' Joshua Warren, replacing 'brother' Pete D'Arrigo at CFO; Warren had a big role at BlackRock -- Envestnet's biggest stakeholder

The Envestnet CEO gets 'very, very impressive' 43 year-old BlackRock exec; the New York asset manager happens to be Envestnet's largest stakeholder.

September 27, 2023 at 2:48 AM

Bill Crager shuffles the deck on management team created just seven months ago: Tony Leal is out of 'Big Three' inner circle, replaced by Morgan Stanley vet Rose Palazzo

The RIA software 'trailblazer' and co-founder of MoneyGuidePro has been working on departure for a year; will transition to a 'consultant,' company says

January 7, 2023 at 1:50 AM

See more related moves

Mentioned in this article:

Fidelity
Asset Custodian
Top Executive: Sanjiv Mirchandani

TD Ameritrade
Asset Custodian
Top Executive: Tom Nally

Envestnet Inc
TAMP
Top Executive: Jud Bergman



RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo