What does the future hold in store for financial services? What trends will have the biggest impact on how to invest and plan? What do financial advisors need to do to win the future of advice?
As part of Loring Ward’s recent 2015 National Education Conference, we sat down with one of financial services’ great visionaries and forward thinkers, Chip Roame, Managing Partner, Tiburon Strategic Partners, for his insights on these critical questions.
Here are some of the highlights:
Robo Advisors & Planning:
I think what the robo advisors have done is shine the light that the narrow offering of investment management just simply isn’t worth 1% and 2% per year …..I think what you’ll see is that financial advisors will focus more on what I will broadly call financial planning. Advisors who do something bigger than investment planning, bigger than investment management… I think you define yourself from the robo advisors and from the discount brokerage firms ….through service. Do one-on-one personal service. Whether that’s taking calls 24 hours a day or that’s connecting with their clients over Skype calls and video, whether that’s meeting with clients, driving to their homes, getting to know/living in their communities.
How Investors Are Changing
There isn’t a whole lot of information that a financial advisor has today that a consumer can’t have today. That changes the paradigm on why would I still use a financial advisor, and it’s either one of two things: It’s either I don’t have the time and/or I don’t trust myself. Those two things become big client service features of a financial advisor going forward. How can you make it easy for the client, make their time more efficient and/or how can you help that investor — through a personal relationship — make the right decisions, make the right calls for their portfolio?
Women Investors & Younger Generations
It’s interesting that women and the younger generations have a lot in common. They feel underserved by financial advisors….The money is going to flow to the women, the money is going to flow to the younger generations and those people have different service needs. They want more technology, they want more hand-holding, they want more social impact SRI than impact investing products, they have a whole lot of different needs than dad had in the traditional manage-my-stock-portfolio-for-me.
Winning the Future
Where the world is going is lower cost investing, more people utilizing turnkey asset management programs, more savvy marketing, more digital marketing, even old school marketing methods like seminars and all, more target marketing…. I think the utilization of TAMPs will become common, I think it’ll be a low-cost way to run one’s business1. If I’m going to be in business for 10 or 20 years, I’d think hard about better deployment of technology.…and I’d think about the thing called succession planning but maybe not just simply selling, maybe other ways of affiliating and ways to make one have the benefits of largeness.
To watch the complete 8-minute video interview with Chip Roame, click here.

1These are the opinions of Chip Roame, Managing Partner, Tiburon Strategic Partners