Robo-advising will likely never take over wealth management, but there are certain elements it could replace. For example, tax-loss harvesting and digital account opening can be streamlined through technology and automation. Any tasks that serve as barriers to receiving services should be accomplished by machine. Financial advisors should instead do more of what they do […]
Financial Services
Despite Headlines, Banks Continue To Open Physical Branches
Several months ago, I mentioned how Bank of America Chairman and CEO Brian Moynihan believes that the need to be omni-channel is one of the keys to success for a bank that operates today. He said, “Despite people saying ‘I never go into a branch,’ they all do.” While there’s a lot of talk about […]
What It Costs To Comply With The DOL Fiduciary Rule
The new U.S. Department of Labor (DOL) fiduciary rule is quickly revealing itself to be the most impactful regulation in the financial services industry in a long time. The investments that companies are needing to make in order to comply with the rule, which focuses on conflict of interest, are making the impact painfully clear. […]
The Relationship Between Wealth Management Companies And Robo-Advisors
Many robo-advisors are thriving with growing customer bases. Not only are they flourishing, they’re partnering with – and in some cases being acquired by – traditional institutions that offer wealth management services. Take UBS, for example. The company’s wealth management division recently formed a strategic alliance with SigFig, a robo-advisor that will help develop solutions […]
How We Know J.P. Morgan Is Serious About The Cloud
I love headlines like this: J.P. Morgan Creates Executive Role to Lead Cloud Services. It helps me understand what’s important to a company and tells me that a company’s focus area is real. As financial services companies continue their efforts to become more efficient in a time in which regulatory demands and low interest rates […]
Stress Tests: What Bank Bosses Worry About Most
If you work in financial services, you may have noticed that your executives aren’t getting enough sleep. They’re most likely tossing and turning at night, thinking about the shift to digital, stringent regulations, and, as The Financial Times recently said: “Bank bosses perhaps are worried most about not being publically humiliated by a failing grade.” […]
How Traditional Wealth Management Companies View Robo-Advisors
As much as they are disruptors of sorts, traditional banks view robo-advisors as healthy. They represent a challenge for incumbents, one that will ultimately result in better customer experiences. Financial institutions believe that the foundation of what they do is not going to go away; however, it puts pressure on them to focus on the […]
Financial And Insurance Advisors, Tech Is the Gateway To Success
“To stay relevant, financial advisors are recognizing that technology has to be a big piece of their pitch to this generation.” That statement came from a CNBC article that discussed the critical role technology plays in the financial services industry. The author, Ilana Polyak, points to a recent report from Fidelity, which indicates that financial […]
Gartner: By 2020, “No-Cloud” Policy Like Today’s “No-Internet” Policy
Gartner recently put out a press release that is quite memorable. It begins with: “By 2020, a corporate “no-cloud” policy will be as rare as a “no-internet” policy is today.” While I personally have never encountered a company that has such a success-hindering policy, I’m sure there are companies out there who are ultra-slow adopters, […]
The Robo-Advisor Climate
The benefits of robo-advisors are clear: trustworthy and affordable financial advice for everyone, regardless of net worth. Although some may debate what role robo-advising will play in wealth management, we’ve reached a point where it’s hard to imagine a world without it. Ever since the evolution of the internet and the widespread adoption of digital […]
What Are Robo-Advisors?
While your clients may have never obtained advice from traditional wealth management companies, the times are changing through the introduction of robo-advisors. Unlike traditional human-to-human financial advice, robo-advisors provide personalized, automated financial advice based on algorithms. They work without the need for human intervention, making such advice cost-friendly and ultimately eliminating common high-net-worth membership figures. […]
A Brief Review Of Wealth Management
According to Investopedia, wealth management is a “service that combines financial/investment advice, accounting/tax services, retirement planning, and legal/estate planning for one fee.” While that definition is an oversimplification of the term, it’s safe to say that wealth management has historically been a service for high-net-worth individuals. For purposes of our conversation, note that Investopedia indicates […]