The Wealth Management of the Future Roundtable

Why advisers must rethink the level of advice they provide their clients

Nov 20, 2013 @ 12:00 am

Runtime: 2:57

Raghav Nandagopal of Broadridge Financial believes technology is a huge disruptor in the advisory space, and the business models and client-service approaches of advisers will need to change to accommodate a new set of demands from clients.

Video Transcript

The industry is undergoing a significant transformation in terms of adoption of technologies, what I call consumerization of technologies, be it on the prospecting side, be it on plan unboarding as well as how the clients use, for example, the mobile devices, the iPads, etc. Related to that is in terms of the wealth. There is also a huge amount of change that is happening in the transfer of wealth, inner generational wealth so the kind of services and the advice that an advisor would need to provide is very different compared to the traditional investment management model. Now fundamentally you have to rethink a holistic approach in what type of advice you provide not only investment, but also in terms of lifestyle, in terms of planning, financial planning, and some of the other capabilities. So, I see technology to be a huge disruptor. The business models of advisors would also have to change to accommodate those kind of changes. I think advisor role is very much to the core of this because they do have the relationship. It's a question of how do you serve and manage that relationship before it was driven by specific products, specific investment decisions. Now, it's more of a wholistic approach across multiple accounts, multiple capabilities. And analytics is a huge area that is of-- that is of importance. What I mean by that is we need to be in a position to understand what are the different needs of the clients by having some analytical tools and technologies. Analytics can come from managing existing clients, managing existing assets in terms of understanding how the assets are getting allocated, how the performance is being monitored in terms of alerts and some of the other stuff, but more important is how do you enable the advisor to prospect clients. For example, if you have the ability to look at a specific set of clients with specific profiles, then you have the ability to make some predictive capabilities and what kind of products, what kind of assets would they use, what kind of services would they require, what type of recommendations and advise would they need, so the advisor effectively sitting in the middle of it, but the role is changing in too much of a wholistic approach using these analytics capabilities.

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