Threat-Opportunity

New Era of Digital Enablement / Beyond Advice – Enablement

On average, young investors don’t have the assets that thier elders have acquired over their lifetimes. Yes advisors often require clients to have a
minimum of assets in order to service their accounts. However, with the assistance of digital advice, that asset minimum is declining as productivity
gains make it feasible to serivce smaller accounts. In some all-digital situations, the asset level minimum has vanished completely.

More than half (54%) of investors agreed with this statement: “The investment advice most financial advisors offer is not worth 1% of the investor’s account value that many charge.

“According to consulting firm Booz Allen Hamilton, digital technology will transform every aspect of how work is done in an organization. “…If we apply this model to the advisory realm, it’s easy to see how robo-advice (essentially, smart digital tools) may ultimately emerge as an intelligent middle ground between human advisors and a simple database of preset responses to pre-imagined questions, or on-the-spot calculations in response to queries.

The challenge for humans  will be to optimze their value by carefully harnessing what tomorrow’s digital tools can do. Ignoring this trend is not an option.

READ MORE:  https://www.pershing.com/_global-assets/pdf/third-annual-study-of-advisory-success.pdf