Advisor Assisted Robos

If you’ve noticed a change to more hipster-targeted advertising from financial service companies, it’s part of an industry-wide chase to connect with the next generation of clients. They’re coming into their own as mature adults and will inherit a tremendous amount of the wealth in the United States, and all within the next ten years. They’re less formal, more tech savvy, and they want access to tools that enable them to interact efficiently and on their own time.   

This coveted group of clients, called the “millennials,” are increasingly attracted to the new batch of robo-advisor platforms to help them manage their finances. If you intend to build a financial advisory practice over the next 20 years, it’s imperative to understand the advantages of these technologies to make your practice more competitive. Your firm will need to integrate new technology to capture and service the emerging affluent with increased efficiency.

Memphis Planning and Wealth is embracing a new online platform, Guided Wealth Portfolios (GWP), which is powered by Future Advisor. GWP is an advisor-assisted robo that enables our clients to see their entire financial picture in one place, have their investment strategies analyzed and managed, and gives them access to our personal advice.

Our new offering compliments our steadfast belief that we are in the holistic advice and service business. While we can add value with individualized asset management, we don’t believe that investing money is more than 15% of the value of a true wealth manager. It’s because of how we define our value proposition that we don’t hang our hats on outperforming, being more tax efficient, or being cheaper. In fact, if you ever say those things or put them in writing your compliance department will promptly put you back on the right track.

Because we provide strategic advice that requires the coordination of various local professionals, we don’t believe that robo advisors will ever be a replacement for a personal relationship with a true wealth manager. However, the robos are wise enough to expand their profitability models to include human advice and even local CFP access (which we applaud).  

In summary, a survey of the competitive landscape of financial services reveals that while the robos are adding advice, the brick-and-mortar advice business is adding robos. No matter which side of the industry you are from, the advisor-assisted robo is the point of convergence where the quality of advice will be the differentiator. The race is on to enhance your intellectual capital and modernize your business.