I was reading yesterday a very interesting article from Financial Planning saying that Motif is planning a shift in its commercial offer by launching a new subscription based prodyct. The new product according to the CEO Hardeep Walia would be called Motif blue and will imply a double shift: from the trading business to the wealth management business (yes, they will launch a robo) and from a fee based business to subscription based.
The move is aimed at capitalizing on rapidly changing client demands and capture a new generation of investors, the millenials that represent the largest share of Motif’s clients.
I personallly believe that the subscription based advisory model is the right choice, it is disrupting since it’s marking a distance from the traditional models offered by incumbent firms and most robo advisors.
We as AdviseOnly understood it years ago, and our advisory service has been based on a subscription model since inception. We recently launched AdviseOnlyTutor, a “pocketable” version of financial advice, that is going to become a chatbot as well, which makes a step forward in making financial advice accessible to everybody, and dramatically reduce the trust issues in robo-advisory.
At the end of the day subscriptions are transparent, easy-to-understand and democratic, all the features young clients are looking for as an alternative to traditional banks.
Our cell phone bill, Cable Tv, Amazon Prime and many other things we like and treat us well as customers, are subscription based. Maybe that’s the right approach to make something useful as financial advice a bit more sexy!!
Curious to hear opinion and thoughts from the experts around FintechGenome