This view is supported by a paper recently published by Insider Intelligence - The hybrid robo-advisor report - which illustrates how hybrid robo-adviser products have been met with exponential growth over the years, and how it is anticipated that the pandemic and millennial wealth transfer will further accelerate growth in this business model.
Hybrid offerings are likely attractive to consumers amid the pandemic because financial advisers can provide additional support and reassurance that a technology solution just cannot do.
In addition, hybrid “robo” models can cut costs along the value chain by using technology, which means they can be offered at a lower price and potentially be attractive to younger clients who will remain clients for many years to come.
When considering how to tap into the unadvised market of the clients of the future it is important to have a client journey that is supportive of their needs which is typically one that is focused on getting them into the savings habit and providing them with understanding of what they need to do with their finances to support their goals and aspirations
Accessibility
>It is often talked about that we have seen five years’ worth of change in five months.
Working in the gig economy means that working hours can vary significantly and therefore the traditional ‘9 – 5’ office hours for meetings on finances don not work for the clients of the future.
There needs to be flexibility as to when they can interact with their finances, be that through technology and/or with a human.
Technology helps for sure. It enables them to check their position or interact with their finances at a time that suits them.
The other key aspect is that it is also important that financial advice is accessible through the language and terminology used.
Within the profession we use a tremendous amount of jargon which for clients is hard to understand.
If we are going to appeal to the unadvised market, we need to speak the language of the clients to make it clear and easy to understand, thereby making it more accessible.
Value
We need to be able to demonstrate how we deliver value for the fees charged for a professional service, therefore the approach taken and solutions available need to address the client need in a cost-effective way.
Clients of the future have not accumulated their wealth and therefore do not have the level of assets that make a percentage of assets fee model commercially viable for either the client or business.
Instead, it needs to be looked at through a different lens - more of a Netflix model.
