Should RIAs offer an automated investing Robo-Advisor service? What are the pros and cons? How should you price the service? Will it cannibalize your existing clients?
In today’s show, Tina Powell and I discuss how she launched automated investing Robo-Advisor SheCapital and why they kept it separately branded from the large RIA that she was affiliated with. We also discuss the difficulties in gaining traction with a Robo-Advisor and how that led to her shutting down SheCapital after just about one year in business.
This whole idea of Robo-Advisors and FinTech is an important one. Many advisors are trying to figure out exactly what clients want when it comes to using automated investing tools like Robo-Advisors and other client-facing technology. In an earlier podcast, I discussed how clients place little value on their advisors technology offering, yet the industry talks non-stop about the importance of advisors having a robust tech stack.
Listen to the Robo-Advisor Conversation
Unquestionably, technology is an important part of an advisor’s practice. Automating as much as you can in the back office is a no-brainer. The tricker part is to figure out what you should offer in client-facing technology. For example, everybody talks about the importance of having a client portal, yet a recent InvestmentNews article pointed out that only 5% to 7% of clients access them.
You can waste a lot of money by chasing ineffective technology. This podcast will help you understand how to approach technology, such as automated investing, in a way that benefits your clients and is cost-effective.
I am available to consult with your firm on the issues raised in this podcast and other strategic issues facing your firm. To learn more, click here to send me an email inquiry.
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