Prosper as a Breakout Advisor

Valuable information and assets provided by Broadridge, this season's sponsor of Practice Makeover.

Nov 3, 2015 @ 9:15 am

By Andrew Besheer, President of Advisor Solutions at Broadridge Financial Solutions

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The principals of Archer Investment Management, based in Raleigh, NC, took notice when robo-advising achieved triple-digit growth over the past year. Now they're tackling the critical question that's on the mind of today's advisory firms: is robo-advising right for me?

It's easy to see why robo-advisors have a place in the market—and why they make some traditional financial advisors so nervous. That's why Broadridge is pleased to sponsor the new season of Investment News' Practice Makeover.

Matt Archer and Nina O'Neal really highlight the dichotomy of views on Robo-Advice in the advisor community; caution and a measure of skepticism from Matt and excitement and enthusiasm from Nina. I believe the answer, for most advisors, will be somewhere in the middle.

Keep watching, and you'll find that this isn't the man vs. machine quandary many perceive it to be. Our CEO Rich Daly explains it this way: the future will require a hybrid approach—part human, part robot. In his latest article, he lays out the reasons firms need to focus on striking the best balance between man and machine.

Tech efficiency, human insight

When you offer algorithm-driven advice, you can add 24/7 convenience and cost-effectively serve clients with smaller amounts to invest or very straightforward requirements. With robo-advising, you'll be equipped to engage younger investors, and meet their tech-savvy expectations. According to the research firm Aite, more than one third of young investors who use financial advisors feel there needs to be better technology to help them manage their money. Robo-advising is a natural fit.

On the other hand, the human side of the equation won't disappear. People still want someone to talk with about their finances. Algorithms may accommodate simpler transactions. However, human advisors will help investors to define longer-term financial strategies as they navigate the ups-and-downs and nuances of the markets.

Going hybrid: Key considerations

In Episode 1 of Practice Makeover, Matt Archer lists his chief concerns about introducing robo-technology at his firm: compliance, implementation, the quality of the technology, and the impact the technology will have on his staff.

Underlying all of these is the issue of client experience: investors will expect seamless, reliable quality and consistency whether they are interacting person-to-person or person-to-robot. This extends beyond trading, to every element of engagement. Breakout advisors recognize how important experience is to attracting and retaining clients.

As you weigh different robo-advising technologies, it's the ideal time to assess your opportunities to take better advantage of technology as well. Clients who want robo-advice may also prefer to interact with your firm digitally in other ways. Plus, the overall quality of your clients' experience depends on ensuring that systems and processes, old and new, smoothly and efficiently work together.

Broadridge can help

Building trust and rapport with clients is key to your success. With Broadridge, you'll uncover new ways to target, network and market more effectively. Achieve more every time you engage clients and prospects—whether through your website, social media, email, newsletters or seminars. That's the smart way to grow.

For more insight into the bionic future for advising, be sure to check out Broadridge CEO Rich Daly's article Why the Future of Financial Advising Will Be Bionic. And, to learn more on how Broadridge can help you be a breakout advisor, contact us today.


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