Archive for April, 2016

Robo-Advisors: Threat Or Opportunity?

Wednesday, April 20th, 2016

Over the past few years, billions of dollars have been invested through Robo-Advisors, a relatively new type of internet-based investment intermediary. These automated systems offer investment management (and in some cases financial planning) at dramatically reduced fees by cutting out the middle man – the traditional broker/advisor.

Should the multi-trillion dollar advisory industry view robos as a business threat? Or should advisors view their emergence as an opportunity? We believe that rather than fight the robo-advisor trend, advisors will be better served by incorporating the philosophy into their business as they see appropriate.

In our estimation, the early growth and success of robo-advisors is evidence that they are here to stay. Advisors can fight them and stick with the line that nothing can replace personalized and individualized advice, or advisors can ask themselves the question, how can I utilize the emergence of robo-advisors and their technology to my advantage? Here are three ways:

  • Assist in client segmentation
  • Attract family members of clients
  • Attract millenials

Want more details? Click here to see the entire White Paper.