LAKE SUCCESS, N.Y.,
June 7, 2017 /PRNewswire/ -- A
new wave of robo-advisors, an increasing number of partnerships
between wealth managers and widespread usage of inorganic
intelligence will drive significant change and opportunities for
the wealth management industry in 2017 and beyond, according to a
new report developed by Broadridge Financial Solutions, Inc. (NYSE:
BR) in association with Aite Group.
The report, "The Digital Revolution Reshaping Wealth Management
and the Future of Financial Advisors," was released at a Broadridge
panel discussion addressing key strategic industry questions and
designed to help clients solve for today's business challenges and
be ready for tomorrow's. According to the report, client
assets on digital advice platforms are projected to more than
double from $65 billion in the first
half of 2016 to $160 billion by the
end of 2017. The sharp rise is expected to come as many wealth
managers roll out new offerings to prevent the potential erosion of
assets following the implementation of the Department of Labor's
Fiduciary Rule later this week. As a result, the robo-advisory
market is projected to cross $400
billion in assets by the end of 2018, with the majority of
assets managed by online brokerages and full-service wealth
management firms.
"Those firms that leverage digital advice to attract the
next-generation of clients, segment their existing client base by
behavior or profitability, and ultimately, bring a high-end wealth
management brand to the mass-affluent marketplace are the ones that
will ultimately harness the competitive advantages of these
innovative platforms," said Alois
Pirker, Research Director of Aite Group's Wealth Management
practice.
The report examines the major trends that are reshaping the
wealth management industry right now, identifying the technologies
and the evolution of business models that firms both need to be
aware of and adapt to in order to stay relevant.
As wealth managers continue to grapple with balance sheet
pressures, strict regulatory requirements, industry consolidation,
financial advisor attrition, and other competitive challenges,
inorganic intelligence – including artificial intelligence, machine
learning, among other advanced technological capabilities – will
continue to emerge as a key differentiator that enables firms to
digest various forms of data, analyze investor sentiment and
weigh potential behavioral probabilities.
"The future of wealth management is one in which investors will
increasingly demand that their financial advisors can quickly and
easily access and leverage technologies that will enable them to
analyze large data sets and provide actionable insights," said
Steve Scruton, President of
Broadridge Advisor Solutions. "Predictive analytics will play a key
role in helping advisors to learn more about their clients and
provide the appropriate products and services at the right
time."
Other key findings from the report include:
- Wealth managers will seek previously unheard of working
relationships with competitors amid the increasing sophistication
of the market, regulatory risks, the benefit and opportunity from
greater focus and specialization, and the continuing arrival of
sector-focused technologies and technology-enabled competition.
- Clients will increasingly have a far greater say in the
products and services they want, where the products come from, how
the products are delivered, and how they are charged.
- Successful firms will focus their efforts on finding the sweet
spot between high-tech and high-touch services, providing clients
with a hybrid advice model that is a diversified business
model.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR) is a leading
provider of investor communications and technology-driven solutions
for broker-dealers, banks, mutual funds and other corporations.
Broadridge's investor and customer communications, securities
processing and managed services solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With more than 50
years of experience, Broadridge' s infrastructure underpins proxy
voting services for over 90% of public companies and mutual funds
in North America and processes on
average $5 trillion in equity and
fixed income trades per day. Broadridge employs approximately
10,000 associates in 16 countries.
For more information about Broadridge, please visit
www.broadridge.com.
Contact Information:
Media:
Gregg Rosenberg
Head of Corporate Communications
+1 212-918-6966
gregg.rosenberg@broadridge.com
Brett Philbin
Edelman
+1 212-704-8263
brett.philbin@edelman.com
Investors:
W. Edings Thibault
Head of Investor Relations
+1 516-472-5129
edings.thibault@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.