What Advisors Think About Digital Advice 2016
Robo-advice or digital delivery of investment-related support for investors has been a prominent topic for the financial services industry. Much of the focus is on firms such as Betterment, Wealthfront, Schwab, and Vanguard that offer robo-advice solutions to individual retail investors and if these solutions are a competitive threat to traditional financial advisors. Less attention has been given to how robo-advice might be leveraged in intermediary channels. Questions remain including how interested are advisors in offering robo-advice, what sources will they likely turn to for help and support, what challenges do they face in taking advantage of digital advice capabilities, and what are their preferences as far as the features and capabilities that could comprise an advisor-focused digital advice offering.
It is with this context that Practical Perspectives, a leading consulting and research firm, examines the consideration of robo-advice from the specific perspective of practicing financial advisors. This new 81 page report offers detailed, data driven observations and insights on the needs, preferences, and requirements of advisors related to leveraging robo-advice. The analysis is based on proprietary research fielded in January 2016 and takes a broad looks at robo-advice and how advisors in key segments including RIA, full-service, and independent channels are approaching digital solutions. Input from more than 850 practicing advisors is the basis for the report.
Key Topic Areas – Robo-Advice from the Advisors Perspective
Interest and Focus on Robo-Advice
Delivering Robo-Advice: Approaches and Impact
Robo-Advice Implementation: Key Preferences
Ordering the Report
The study is available in PDF format for the subscription price of $5,450. To order the complete 81 page, 59 exhibit report or for more information, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and MethodologyRobo-advice or digital delivery of investment-related support for investors has been a prominent topic for the financial services industry in the past year. Significant attention has been focused on firms such as Betterment, Wealthfront, Schwab, and Vanguard in their launch of robo-advice solutions targeted to individual retail investors and how these solutions may be a competitive threat to traditional financial advisors. While several of these and other providers have also introduced capabilities designed to support financial advisors, less attention has been given to how robo-advice might be leveraged in intermediary channels. Questions remain including how interested are advisors in offering robo-advice, what sources will they likely turn to for help and support, what challenges do they face in taking advantage of digital advice capabilities, and what are their preferences as far as the features and capabilities that could comprise an advisor-focused digital advice offering. Our goal in this report is to provide a data driven view examining the consideration of robo-advice from the specific perspective of practicing financial advisors. This in-depth report combines distinct research insights with practical, consulting oriented analysis. The report offers relevant and actionable information for a variety of key constituents interested in understanding how advisors might leverage robo-advice as this market develops.
“Exploring Robo-Advice from the Advisors Perspective – What Advisors Think About Digital Advice 2016” examines advisors interest, needs, and expectations related to leveraging robo-advice solutions. The analysis looks in detail at specific elements of robo-advice from the advisors singular viewpoint including their awareness and consideration of leading providers and platforms, the key concerns or challenges in using robo-advice, the anticipated benefits and impact on their practices, the models, strategies, and tactics they expect to put in place, the audiences they perceive as key targets for robo-advice, and the key features and benefits most important in a robo-advice solution. The report provides a detailed analysis by major intermediary channels to help illustrate key differences in needs and expectations for robo-advice among RIAs, Independent advisors, and Full Service advisors (WIrehouse, Regional, and National firms).
Among the key questions addressed in this report are:
This report is based on input from a broad cross-section of advisors. In January 2016, advisors were asked to participate in an on-line survey regarding advice delivery. Advisors were randomly solicited across all delivery channels. More than 850 advisor responses were used as the basis for this report. Advisors did not receive any compensation for participation in the survey.
As appropriate, findings are shared for the overall research sample as well as for major distribution channels – Full Service, Independent, and RIA. In reviewing this report, note Given the confidential nature of the input, none of the respondents are disclosed.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Advisors Interest and Focus on Robo-Advice
A. How much of a priority is robo-advice for advisors?
B. To what extent are advisors aware of and focused on robo-advice?
C. How familiar are advisors with leading robo-advice providers and platforms?
D. What do advisors perceive as the key challenges in leveraging robo-advice?
E. What are advisors most important questions related to the consideration of robo-advice?
F. What are advisors are advisors most important goals in considering or offering robo-advice?
G. What are advisors key thoughts and perspectives on robo-advice?
Section IV: Delivering Robo-Advice: Approaches and Expected Impact
A. What model for delivery of robo-advice is of most interest to advisors?
B. How do advisors expect robo-advice will impact advice delivery?
C. How do advisors expect robo-advice will impact key practice metrics?
D. Who do advisors perceive as the target audience for robo-advice?
E. What strategy do advisors expect to employ in providing robo-advice?
F. How likely are advisors to offer robo-advice in the next 12 months?
G. What are the key barriers for advisors less likely to offer robo-advice and what must change for them to consider robo-advice?
H. How likely are advisors to rely on multiple robo-advice platforms or providers?
Section V: Robo-Advice Implementation: Key Preferences
A. What sources are advisors most likely to rely on for robo-advice support?
B. To what extent are advisors familiar with the robo-advice capabilities available from their custodian or broker-dealer?
C. How likely are advisors to rely on robo-advice capabilities not delivered through their custodian or broker-dealer?
D. To what extent do advisors expect robo-advice will be integrated with other aspects of their practice?
E. How much do advisors expect to charge for robo-advice?
F. How do advisors expect to brand their robo-advice offering?
G. What investment vehicles do advisors prefer to have access to through a robo-advice platform?
H. Which features and capabilities are most important to be included within a robo-advice solution?
I. To what extent do advisors expect to provide personalized support to robo-advice clients?
Section VI: Characteristics Of Advisors
Section X: Implications And Outlook
List of Exhibits
Exhibit 1: Priority of Developing and Offering Robo-Advice in Next 12 to 24 Months
Exhibit 2: Priority of Developing and Offering Robo-Advice in Next 12 to 24 Months by Channel
Exhibit 3: Current Status in Considering Digital Advice
Exhibit 4: Current Status in Considering Digital Advice by Channel
Exhibit 5: Awareness and Consideration of Leading Robo-Advice Platforms
Exhibit 6: Awareness and Consideration of Leading Robo-Advice Platforms – Full Service Advisors
Exhibit 7: Awareness and Consideration of Leading Robo-Advice Platforms – Independent Advisors
Exhibit 8: Awareness and Consideration of Leading Robo-Advice Platforms - RIAs
Exhibit 9: Perceived Challenges to Leveraging Robo-Advice
Exhibit 10: Perceived Challenges to Leveraging Robo-Advice by Channel
Exhibit 11: Most Important Questions Regarding to Robo-Advice
Exhibit 12: Most Important Questions Regarding to Robo-Advice by Channel
Exhibit 13: Main Goals in Considering or Offering Robo-Advice
Exhibit 14: Main Goals in Considering or Offering Robo-Advice by Channel
Exhibit 15: Preferred Model for Robo-Advice Delivery
Exhibit 16: Preferred Model for Robo-Advice Delivery by Channel
Exhibit 17: Likely Impact of Robo-Advice on Industry
Exhibit 18: Likely Impact of Robo-Advice on Industry by Channel
Exhibit 19: Expected Impact of Robo-Advice on Advisors Practice Over Time
Exhibit 20: Positive Impact of Robo-Advice on Advisors Practice Over Time by Channel
Exhibit 21: Expected Impact of Robo-Advice on Key Practice Metrics
Exhibit 22: Expect Robo-Advice to Represent More Than 10% of Key Practice Metrics by Channel
Exhibit 23: Expected Target Audience for Robo-Advice
Exhibit 24: Expected Target Audience for Robo-Advice by Channel
Exhibit 25: Strategy to Employ Robo-Advice
Exhibit 26: Strategy to Employ Robo-Advice by Channel
Exhibit 27: Likelihood of Offering Robo-Advice in Next 12 Months
Exhibit 28: Likelihood of Offering Robo-Advice in Next 12 Months by Channel
Exhibit 29: Key Barriers to Offering Robo-Advice in Next 12 Months
Exhibit 30: Key Barriers to Offering Robo-Advice in Next 12 Months by Channel
Exhibit 31: Changes to Drive Higher Interest in Offering Robo-Advice
Exhibit 32: Changes to Drive Higher Interest in Offering Robo-Advice by Channel
Exhibit 33: Number of Robo-Advice Platforms/Providers Expect to Use
Exhibit 34: Number of Robo-Advice Platforms/Providers Expect to Use by Channel
Exhibit 35: Expected Sources for Robo-Advice Support
Exhibit 36: Expected Sources for Robo-Advice Support by Channel
Exhibit 37: Availability of Robo-Advice Through Custodian or Broker-Dealer
Exhibit 38: Availability of Robo-Advice Through Custodian or Broker-Dealer by Channel
Exhibit 39: Likely Rely On Robo-Advice Capability Not Integrated with Custodian/Broker-Dealer
Exhibit 40: Likely Rely On Robo-Advice Capability Not Integrated with Custodian/Broker-Dealer by Channel
Exhibit 41: Integration of Robo-Advice with Other Aspects of an Advisors Practice
Exhibit 42: Integration of Robo-Advice with Other Aspects of an Advisors Practice by Channel
Exhibit 43: How Much Advisors Expect to Charge for a Robo-Advice Solution
Exhibit 44: How Much Advisors Expect to Charge for a Robo-Advice Solution by Channel
Exhibit 45: Approach to Branding Robo-Advice
Exhibit 46: Approach to Branding Robo-Advice by Channel
Exhibit 47: Preferred Investment Vehicles within Robo-Advice Platform
Exhibit 48: Preferred Investment Vehicles within Robo-Advice Platform by Channel
Exhibit 49: Importance of New Account Opening Features and Capabilities
Exhibit 50: Very Important New Account Opening Features and Capabilities by Channel
Exhibit 51: Importance of Account Servicing Features and Capabilities
Exhibit 52: Very Important Account Servicing Features and Capabilities by Channel
Exhibit 53: Importance of Portfolio Management Features and Capabilities
Exhibit 54: Very Important Portfolio Management Features and Capabilities by Channel
Exhibit 55: Importance of Operations and Support Features and Capabilities
Exhibit 56: Very Important Operations and Support Features and Capabilities by Channel
Exhibit 57: Extent of Offering Personalized Support to Robo-Advice Clients
Exhibit 58: Extent of Offering Personalized Support to Robo-Advice Clients by Channel
Exhibit 59: Profile of Advisors by Key Characteristics
Robo-advice or digital delivery of investment-related support for investors has been a prominent topic for the financial services industry. Much of the focus is on firms such as Betterment, Wealthfront, Schwab, and Vanguard that offer robo-advice solutions to individual retail investors and if these solutions are a competitive threat to traditional financial advisors. Less attention has been given to how robo-advice might be leveraged in intermediary channels. Questions remain including how interested are advisors in offering robo-advice, what sources will they likely turn to for help and support, what challenges do they face in taking advantage of digital advice capabilities, and what are their preferences as far as the features and capabilities that could comprise an advisor-focused digital advice offering.
It is with this context that Practical Perspectives, a leading consulting and research firm, examines the consideration of robo-advice from the specific perspective of practicing financial advisors. This new 81 page report offers detailed, data driven observations and insights on the needs, preferences, and requirements of advisors related to leveraging robo-advice. The analysis is based on proprietary research fielded in January 2016 and takes a broad looks at robo-advice and how advisors in key segments including RIA, full-service, and independent channels are approaching digital solutions. Input from more than 850 practicing advisors is the basis for the report.
Key Topic Areas – Robo-Advice from the Advisors Perspective
Interest and Focus on Robo-Advice
- How much of a priority is robo-advice for advisors?
- To what extent are advisors aware of and focused on robo-advice?
- How familiar are advisors with leading robo-advice providers and platforms?
- What do advisors perceive as the key challenges in leveraging robo-advice?
- What are advisors most important questions related to the consideration of robo-advice?
- What are advisors are advisors most important goals in considering or offering robo-advice?
Delivering Robo-Advice: Approaches and Impact
- What model for delivery of robo-advice is of most interest to advisors?
- Who do advisors perceive as the target audience for robo-advice?
- How likely are advisors to offer robo-advice in the next 12 months?
- How do advisors expect robo-advice will impact advice delivery and key practice metrics?
- What are the key barriers for advisors less likely to offer robo-advice and what must change for them to consider robo-advice?
Robo-Advice Implementation: Key Preferences
- How much do advisors expect to charge for robo-advice?
- How do advisors expect to brand their robo-advice offering?
- What investment vehicles do advisors prefer to have access to through a robo-advice platform?
- Which features and capabilities are most important to be included within a robo-advice solution?
- To what extent do advisors expect to provide personalized support to robo-advice clients?
Ordering the Report
The study is available in PDF format for the subscription price of $5,450. To order the complete 81 page, 59 exhibit report or for more information, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and MethodologyRobo-advice or digital delivery of investment-related support for investors has been a prominent topic for the financial services industry in the past year. Significant attention has been focused on firms such as Betterment, Wealthfront, Schwab, and Vanguard in their launch of robo-advice solutions targeted to individual retail investors and how these solutions may be a competitive threat to traditional financial advisors. While several of these and other providers have also introduced capabilities designed to support financial advisors, less attention has been given to how robo-advice might be leveraged in intermediary channels. Questions remain including how interested are advisors in offering robo-advice, what sources will they likely turn to for help and support, what challenges do they face in taking advantage of digital advice capabilities, and what are their preferences as far as the features and capabilities that could comprise an advisor-focused digital advice offering. Our goal in this report is to provide a data driven view examining the consideration of robo-advice from the specific perspective of practicing financial advisors. This in-depth report combines distinct research insights with practical, consulting oriented analysis. The report offers relevant and actionable information for a variety of key constituents interested in understanding how advisors might leverage robo-advice as this market develops.
“Exploring Robo-Advice from the Advisors Perspective – What Advisors Think About Digital Advice 2016” examines advisors interest, needs, and expectations related to leveraging robo-advice solutions. The analysis looks in detail at specific elements of robo-advice from the advisors singular viewpoint including their awareness and consideration of leading providers and platforms, the key concerns or challenges in using robo-advice, the anticipated benefits and impact on their practices, the models, strategies, and tactics they expect to put in place, the audiences they perceive as key targets for robo-advice, and the key features and benefits most important in a robo-advice solution. The report provides a detailed analysis by major intermediary channels to help illustrate key differences in needs and expectations for robo-advice among RIAs, Independent advisors, and Full Service advisors (WIrehouse, Regional, and National firms).
Among the key questions addressed in this report are:
- How much of a priority is robo-advice for advisors?
- To what extent are advisors focusing on robo-advice?
- How familiar are advisors with leading robo-advice providers and solutions?
- What do advisors perceive as the key challenges in leveraging robo-advice?
- What are advisors most important questions related to robo-advice?
- What model for delivery of robo-advice is of most interest to advisors?
- How do advisors believe robo-advice will impact advice delivery and key practice metrics such as clients served and assets under management?
- What strategy do most advisors expect to employ in offering robo-advice?
- How likely are advisors to offer robo-advice in the next 12 months and what are the barriers that must be overcome?
- What sources are advisors most likely to rely on for robo-advice?
- How do advisors expect to brand a robo-advice offering?
- How much do advisors expect to charge for robo-advice?
- What investment vehicles do advisors prefer to be included within a robo-advice offering?
- Which features and capabilities are most important to have within a robo-advice solution including those related to account opening, portfolio management, and client servicing?
- To what extent do advisors expect to provide personalized support to robo-advice clients?
This report is based on input from a broad cross-section of advisors. In January 2016, advisors were asked to participate in an on-line survey regarding advice delivery. Advisors were randomly solicited across all delivery channels. More than 850 advisor responses were used as the basis for this report. Advisors did not receive any compensation for participation in the survey.
As appropriate, findings are shared for the overall research sample as well as for major distribution channels – Full Service, Independent, and RIA. In reviewing this report, note Given the confidential nature of the input, none of the respondents are disclosed.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Advisors Interest and Focus on Robo-Advice
A. How much of a priority is robo-advice for advisors?
B. To what extent are advisors aware of and focused on robo-advice?
C. How familiar are advisors with leading robo-advice providers and platforms?
D. What do advisors perceive as the key challenges in leveraging robo-advice?
E. What are advisors most important questions related to the consideration of robo-advice?
F. What are advisors are advisors most important goals in considering or offering robo-advice?
G. What are advisors key thoughts and perspectives on robo-advice?
Section IV: Delivering Robo-Advice: Approaches and Expected Impact
A. What model for delivery of robo-advice is of most interest to advisors?
B. How do advisors expect robo-advice will impact advice delivery?
C. How do advisors expect robo-advice will impact key practice metrics?
D. Who do advisors perceive as the target audience for robo-advice?
E. What strategy do advisors expect to employ in providing robo-advice?
F. How likely are advisors to offer robo-advice in the next 12 months?
G. What are the key barriers for advisors less likely to offer robo-advice and what must change for them to consider robo-advice?
H. How likely are advisors to rely on multiple robo-advice platforms or providers?
Section V: Robo-Advice Implementation: Key Preferences
A. What sources are advisors most likely to rely on for robo-advice support?
B. To what extent are advisors familiar with the robo-advice capabilities available from their custodian or broker-dealer?
C. How likely are advisors to rely on robo-advice capabilities not delivered through their custodian or broker-dealer?
D. To what extent do advisors expect robo-advice will be integrated with other aspects of their practice?
E. How much do advisors expect to charge for robo-advice?
F. How do advisors expect to brand their robo-advice offering?
G. What investment vehicles do advisors prefer to have access to through a robo-advice platform?
H. Which features and capabilities are most important to be included within a robo-advice solution?
I. To what extent do advisors expect to provide personalized support to robo-advice clients?
Section VI: Characteristics Of Advisors
Section X: Implications And Outlook
List of Exhibits
Exhibit 1: Priority of Developing and Offering Robo-Advice in Next 12 to 24 Months
Exhibit 2: Priority of Developing and Offering Robo-Advice in Next 12 to 24 Months by Channel
Exhibit 3: Current Status in Considering Digital Advice
Exhibit 4: Current Status in Considering Digital Advice by Channel
Exhibit 5: Awareness and Consideration of Leading Robo-Advice Platforms
Exhibit 6: Awareness and Consideration of Leading Robo-Advice Platforms – Full Service Advisors
Exhibit 7: Awareness and Consideration of Leading Robo-Advice Platforms – Independent Advisors
Exhibit 8: Awareness and Consideration of Leading Robo-Advice Platforms - RIAs
Exhibit 9: Perceived Challenges to Leveraging Robo-Advice
Exhibit 10: Perceived Challenges to Leveraging Robo-Advice by Channel
Exhibit 11: Most Important Questions Regarding to Robo-Advice
Exhibit 12: Most Important Questions Regarding to Robo-Advice by Channel
Exhibit 13: Main Goals in Considering or Offering Robo-Advice
Exhibit 14: Main Goals in Considering or Offering Robo-Advice by Channel
Exhibit 15: Preferred Model for Robo-Advice Delivery
Exhibit 16: Preferred Model for Robo-Advice Delivery by Channel
Exhibit 17: Likely Impact of Robo-Advice on Industry
Exhibit 18: Likely Impact of Robo-Advice on Industry by Channel
Exhibit 19: Expected Impact of Robo-Advice on Advisors Practice Over Time
Exhibit 20: Positive Impact of Robo-Advice on Advisors Practice Over Time by Channel
Exhibit 21: Expected Impact of Robo-Advice on Key Practice Metrics
Exhibit 22: Expect Robo-Advice to Represent More Than 10% of Key Practice Metrics by Channel
Exhibit 23: Expected Target Audience for Robo-Advice
Exhibit 24: Expected Target Audience for Robo-Advice by Channel
Exhibit 25: Strategy to Employ Robo-Advice
Exhibit 26: Strategy to Employ Robo-Advice by Channel
Exhibit 27: Likelihood of Offering Robo-Advice in Next 12 Months
Exhibit 28: Likelihood of Offering Robo-Advice in Next 12 Months by Channel
Exhibit 29: Key Barriers to Offering Robo-Advice in Next 12 Months
Exhibit 30: Key Barriers to Offering Robo-Advice in Next 12 Months by Channel
Exhibit 31: Changes to Drive Higher Interest in Offering Robo-Advice
Exhibit 32: Changes to Drive Higher Interest in Offering Robo-Advice by Channel
Exhibit 33: Number of Robo-Advice Platforms/Providers Expect to Use
Exhibit 34: Number of Robo-Advice Platforms/Providers Expect to Use by Channel
Exhibit 35: Expected Sources for Robo-Advice Support
Exhibit 36: Expected Sources for Robo-Advice Support by Channel
Exhibit 37: Availability of Robo-Advice Through Custodian or Broker-Dealer
Exhibit 38: Availability of Robo-Advice Through Custodian or Broker-Dealer by Channel
Exhibit 39: Likely Rely On Robo-Advice Capability Not Integrated with Custodian/Broker-Dealer
Exhibit 40: Likely Rely On Robo-Advice Capability Not Integrated with Custodian/Broker-Dealer by Channel
Exhibit 41: Integration of Robo-Advice with Other Aspects of an Advisors Practice
Exhibit 42: Integration of Robo-Advice with Other Aspects of an Advisors Practice by Channel
Exhibit 43: How Much Advisors Expect to Charge for a Robo-Advice Solution
Exhibit 44: How Much Advisors Expect to Charge for a Robo-Advice Solution by Channel
Exhibit 45: Approach to Branding Robo-Advice
Exhibit 46: Approach to Branding Robo-Advice by Channel
Exhibit 47: Preferred Investment Vehicles within Robo-Advice Platform
Exhibit 48: Preferred Investment Vehicles within Robo-Advice Platform by Channel
Exhibit 49: Importance of New Account Opening Features and Capabilities
Exhibit 50: Very Important New Account Opening Features and Capabilities by Channel
Exhibit 51: Importance of Account Servicing Features and Capabilities
Exhibit 52: Very Important Account Servicing Features and Capabilities by Channel
Exhibit 53: Importance of Portfolio Management Features and Capabilities
Exhibit 54: Very Important Portfolio Management Features and Capabilities by Channel
Exhibit 55: Importance of Operations and Support Features and Capabilities
Exhibit 56: Very Important Operations and Support Features and Capabilities by Channel
Exhibit 57: Extent of Offering Personalized Support to Robo-Advice Clients
Exhibit 58: Extent of Offering Personalized Support to Robo-Advice Clients by Channel
Exhibit 59: Profile of Advisors by Key Characteristics
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