Digital Advice – The Hybrid Model

Platform automation streamlines the workflow, resulting in lower operating and on-boarding costs and the overall client experience is enhanced.

Digital Advice – The Hybrid Model

Platform automation streamlines the workflow, resulting in lower operating and on-boarding costs and the overall client experience is enhanced.
course By FINTECH Books Contributor, Tobias Henry Follow: @tobiashenry An industry long recognized by its conventional approach, the suit-and-tie financial advisor is finally getting a fresh look. But the truth is, this change has been long overdue. For decades, momentum has been building with mounting regulations, cost pressures, and rising client expectations yet methods for providing financial advice have gone staggeringly unchanged. The collision course between traditional human advisors and digital robo advisors has been set, but success will be determined as wealth management gravitates towards the new centre, the hybrid advisor model. In early 2015, a surge of acquisitions and partnerships began as wealth managers sought the best digital advice platforms for modernizing their business. This new medium for financial advice automates core functions of investment and account management, enabling the advisor to focus on holistic financial planning and building relationships with clients. Under the hybrid model, increased advisor scalability and the flexibility of multiple business strategies allow for serving more clients, across all stages of their life, in a cost efficient way. Platform automation streamlines the workflow, resulting in lower operating and on-boarding costs. And overall client experience is enhanced driven by the customization and collaboration inherent in the hybrid approach. For an industry so averse to change, the pivot towards digital financial advice has been swift. Digital advisors who were first to market with a hybrid model are swallowing their direct to customer competitors, capturing client assets at 10x the pace. And the majority of direct to customer digital advisors are now seen shifting to hybrid. Although the future is bright for wealth managers who are successful in completing this shift, the pressure is on for continued innovation as non-financial services companies such as Uber, Alibaba, and Facebook recognize the opportunity at hand, start offering their own form of financial services, and begin a new battle. If you would like to learn more about FinTech please look at our video courses at FINTECHCircleInstitute.com