Accenture Wealth Management Rise of Robo Advice
Accenture Wealth Management Rise of Robo Advice
Accenture Wealth Management Rise of Robo Advice
RIA/Robo-advisor
Partnership
Discount Broker
Robo-advice
Full Service
Wealth Manager with
E-advisor Capabilities
Northwestern Mutual
acquires Learnvest
Jemstep launches
Portfolio Manager
Fidelity / Devonshire
invests in Future Advisor
Fidelity partners
with E-money
Fidelity acquires
E-money
Vanguard launches
Vanguard Personal
Services (PAS)
2013
2014
2015
Beyond
Leading wealth
managers reported
to launch robo
offerings in
2016/17
Fidelity partners
with Learnvest
Schwab launches
Intelligent Portfolios
Understand
Current Future
Quarterly or annual
performance reviews
Dashboards, status-alerts
Understand
Client Needs
Client-Advisor
Lifecycle
Implement
Current Future
Open accounts
Implement
Solutions
Propose
Solutions
Propose
Develop a financial plan
Transfer assets
Persuade to action
Provide validation
Generate proposals
Current Future
Synthesize custom
client solutions
Current Future
A Robo-Advice Offering:
Keys to Success
In our view, robo-advice will complement, rather than displace, financial
advisors. Some large firms will build their own offerings, while other
large and mid-sized firms might buy independent robo-advisory firms.
Smaller firms may offer white label services or incorporate a branded
industry solution.
Firms have been looking for years at how
to handle the different needs of different
types of clients. The robo-advice model is
ideal for clients with simple needs, or for
smaller entry level accounts. The low
fee structure for their services will push
traditional advisors to re-examine and
sharpen their fee structure.
To succeed with a robo-advice product,
however, firms will need to understand the
keys to success in attracting and keeping
investors. In particular, they have to make
important decisions about how to introduce
such offerings to their own clients. Do
they unveil a standalone product, or do
they attempt to provide robo-advice next
to other, more traditional offerings? What
distribution channels should be used to
introduce the new capabilities?
We see three main concerns for wealth
management firms to address today:
2. Developing an effective
distribution strategy.
Part of the excitement surrounding
robo-advice services is their appeal to
non-traditional clients, especially younger
clients with fewer assets to manage.
Robo-advice fills a void for millennials,
allowing them to start building wealth and
planning for the future. This is particularly
important at time when other entry
level investment vehicles such as savings
accounts and certificates of deposit no
longer deliver meaningful investment
returns. The new offerings may, therefore,
attract assets that are not currently
in-house at wealth management firms.
An important consideration for firms is
whether to use the firms own, established
brand for a robo-advice offering, or to roll
out the offering under a new brand.
Benefits
Product offering
through call center
based advisor channel
Product distributed
through full-service
advisors
Toolset embedded in
the platform supporting
a broad range of
advised products
Offering is aligned
with channels target
wealth tier
Provides robo
capabilities to advisors
whose clients ask for it
Seamlessly enhances
traditional advisor
platform
Provides greatest
scale and leverage
for the offering
Leverage capabilities
to benefit advisors
and clients
Large, complex
deployment
Considerations
Could be viewed as
competition by existing
advisor force
Revamp of call-center
advisor channel
repositioning for growth
Large, complex
deployment to
distributed advisor force
Change management/
cultural disruption
Significant platform
dependencies
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Conclusion
Despite the quick uptake of robo-advice services among wealth
management firms and individual investors, their share of assets under
management is quite small. Robo-advice will not suit every investor.
http://www.wsj.com/articles/putting-robo-advisers-to-the-test-1429887456
https://www.accenture.com/us-en/insight-generation-d-europe-investor-survey-wealth-management
11
Contacts
About Accenture
Charles Ludden
Senior Manager, Accenture Capital Markets
charles.ludden@accenture.com
15-4356
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