Daily Fintech Conversations

US Financial Advisors plucking diasies or Finteching?

I wrote a post in April (maybe already old) about RIAs in the US not acting, not adopting the Digital Wealth Mgt tools that are being developed. See https://dailyfintech.com/2016/04/11/us-financial-advisers-confused-and-plucking-diasies/

Today I read that a 60% increase has been reported in 2016, in the number of US advisors that provide advice fully digitally. The number reported was 126!

What is the total number of US FIs?
Hasn’t it been shrinking steadily?
Which of the large US firms that FIs use, is NOT buying the digital transformation underway and is keeping their network out of this? I only kow Raymond Jones.
They say publicly NO to robos but YES to a DIGITAL strategy

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Now this is another enticing offering for Financial advisors in the US. Orion (accounting focus) is launching a platform of integrate services.
Orion Advisor Services Simplifies Purchasing Top Financial Technology via Orion Connect

Through Orion Connect, advisors now get the benefit of a bundled, simplified purchasing process for select integration partners. These partners include Junxure, AdvisoryWorld, Morningstar (Morningstar® ByAllAccountsSM and Morningstar® Total Rebalance Expert), MoneyGuidePro®, Orchestrate, LLC, WealthSite Inc. Private Asset Platform, Quovo, Wealth Access, and Riskalyze.

@paolo.sironi SEI survey (from the end of last year) points to:

"Goals-Based Investment Strategy

Interestingly, 80 percent of advisors resolve to make enhancements to their businesses by exploring managed volatility investment strategies, which more effectively weather ups and downs in the markets. However, when asked to rank the resolutions in priority order for 2016, the number one investment-enhancement priority for advisors is to implement a goals-based approach to investing for their clients.
“True goals-based investing is setting goals and tracking against them, which helps redefine how a client measures success. It moves away from traditional benchmarks and towards a more meaningful one – progress toward specific client goals,” said Anderson. "In 2016, advisors will be focused on ways to keep existing clients happier by implementing longer-term, client-specific goals, rather than setting goals depending on the market, which will continue to fluctuate.“
Even though most advisors responded that “explore managed volatility investment strategies” is in their top three New Year’s resolutions, it is only a second priority for advisors in 2016, followed by implementing more tactical or dynamic investment options for clients.”

http://www.marketwired.com/press-release/sei-survey-reveals-financial-advisors-top-2016-new-years-resolutions-nasdaq-seic-2084608.htm

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The key aspect of Goal Based Investing is that it pushes Wealth Managers to the frontier of both asset allocation (probabilistic methods) and client engagement (graphical goal planning). GBI is where FIN innovation and TECH innovation can truly meet! Good pick @Efi, still very actual.

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