How advisors interact with clients and the firms they expect to be competing against will change dramatically due primarily to technology, according to a Schwab survey of 821 smaller independent wealth management firms. Half of the advisors polled expect online advisors to be one of three types of firms vying for their clients’ business, along with national firms and wire houses.
Advisors believe that the next generation of investors will value independence more and will have greater involvement with decisions. That will require education. At the same time, 36% of advisors expect that fewer clients will want face-to-face meetings, with many demanding “anytime, anywhere” access to their advisor through Facebook and Skype.
But the demise of personal advice from a live advisor is greatly exaggerated, Michael Kitces notes in an Investment News video — just as supermarkets have seemed to survive online sites that deliver groceries. A vast majority of people will want a financial planner acting as a coach to help them with certain services, while the use of online advice will grow for more commoditized, core functions such as rebalancing passive investment strategies.
