The Client Advisor is dead - Long live the Client Advisor

Usually the more the majority thinks something will disappear the longer it stays. The client advisor has become more an administrator than a real strategic partner to the client. I am convinced the client advisor will rise like a phoenix from the ashes and will stand again on the top of the pyramid. What do you think. Here a more detailed view http://www.finews.ch/news/english-corner/23052-marc-lussy-finews-first-fintech-robo-advisers-uber-banking-trusted

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I agree. At a panel today somebody used the analgy of a doctor. You can have doctors who just use a stethoscope and others have modern tech. A tech empowered adviser should always be adding value, like a tech empowered doctor

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Doctors a great analgy for so many reasons in addition to the one you mentioned. For instance very often the “good” doctors do not offer things you can ot get elswhere. The quality and their experience is just better and the clients risk reduces. Like in asset management, Pretty much nobody is able to achieve a much much better result longterm, but the good managers have a structured apporoach and are very client oriented and therefore risk for client to loose money is much smaller. An other analgy: Would you go to a doctor who is on Novartis payroll? Rather nor right? Because you would believe that he will prefer to sell you Novartis products. Any reason why not same with an advisor being on banks payroll

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As a wealth management advisor to high net worth clients for over twenty five years, I have strong views on this subject. I see much talk of ¨tech¨, but not a word about ¨trust¨. High net worth clients in particular demand a human contact, and not just any human, but rather a person who has earned there trust over a long period of time. Once of the central problems in traditional ¨private banking¨ is the high rate of turnover of client relationship managers, as this turnover is very disruptive to the client´s. They want a single person to know the full picture as revealed to the institution of their wealth, (a very private matter) and this role I believe will never be replaced by technology alone. Long live client advisor indeed!

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@Jamesmlevy01 Fintech hasnt helped reduce the turnover rate of relationship managers. Has it?

Thomas Fortin, a Blackrock MD, said that “Digital Only advice, will only be a niche business”. Even though robo-advisors of all sorts will become mainstream, the “Can I reach you?” feature will prove be also mainstream.
See the last part of my review from the Swiss International Finance Conference.

@marclussy and Blackrock, are saying that “Digital Only in advice, will just become a niche”

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Man + Machine is the way forward. Technology as a tool to make humans smarter rather, than a replacement for them. Futurists of the the 1950’s would have us believe coffee was going to be by automatons and would never have predicted Starbucks. The future belongs to those making humans better rather than obsolete.

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Absolutely agree James. Replacing / switching client advisors on a regular base, that is where it went very wrong. It also went wrong when compensations were paid based on new assets under management instead of client retention and above all level of trust. With this approach trust has been rather destroyed. In addition with this apporach banks are forced to switch client advisors regularly because else they have the risk that the advisor changes the employer and taking the assets with him in order to increase compensation.

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I won’t be avove all the area to make money. I belive a bank has to provide it. No need to rush though. A robo is implemented quickly. Either way fees and comissions for creating/maintainging products will decrease sharply because value added by banks /asset advisors have become limited will all the technology and info we have in our days. It has become just a commodity. Focus needs to be on trust on beeing a strategic partner, a coach to the client. Thats where experts can add value and therefore clients are willing to pay…

The common positioning of human vs. “robo” is wrong
because it implies that there could only be one winner. I understand why “Robo-advisors” originally pushed this narrative (after all, they had to sell big dreams to investors to get funded), but there are no signs in the market to support this. There are too many different consumer segments with different needs and preferences so it’s very unlikely that they will all go just for one of the two extremes: “robo” or “human”.

The role of an advisor WILL change and lots of advisors who currently don’t bring much value (beyond what can be automated) will go out of business. But advisors will not go extinct.

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That is exactely what I wanted to express

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