US Financial advisers: confused and plucking daisies

April is underway and as I think of the digitization in wealth management for financial advisors, I see a confused and a low penetration segment.

A March month end report in the FT titled “US financial advisers give robo-advisers a frosty reception” points to single digit adaptation rates of online advice platfroms from advisers. Just 4% in the US!

Taking a closer look to those brave early adaptors, I question their motives and the ways they actually use these platforms.

Are they for serving the “poor” relatives of their existing HNW clients?

Are they essentially treating these tools as an add-on, a plug-in but not The platform to offer value to customers?

Are they just the Entry point for the younger prospects and with smaller amounts of wealth, who all actually intend to Cross-over to “full-service” as soon as possible?

Totum Wealth, that has sprung up recently. This Fintech CEO who cut her teeth at Nutmeg, is the other Fintech that claims to be an enabler for the online digital needs of RIAs. Very much focused on an alternative way for assessing client risk appetite. Very much preaching that traditional risk assessment questionnaires are missing the mark. Totum Wealth is in beta version and and has more than 30 firms singed up for a 3month trail.

Riskalyze and Totum Wealth, already show signs of being the Betterment-Wealthfronts of the robos for RIAs. They have started a kind of bras-de-fer on the social media about their hidden costs and their modeling assumptions etc.

Read more here.

 

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