Wealth management has traditionally meant a dedicated human financial advisor, providing tailored investment advice to primarily high-net-worth and ultra-high-net-worth clients. Over the past 10 years, innovations in financial technology, increased regulation, and changing generational expectations have challenged our understanding of the client-advisor relationship, and the wealth management industry as a whole.
The rapid growth and proliferation of financial services technology firms has caused a shift in the market. The digital first, low-cost alternatives they provide have opened wealth management to a broader base of retail, affluent, and mass affluent customers.
While the wealth management debate has focused on digital advisor versus human advisor, a third option has emerged, the hybrid advisor model, which combines the best aspects of both traditional human advice and automated digital platforms.
Firms that successfully employ the hybrid advisor model will be empowered to evolve their business, attract a new generation of customers, and serve them in a flexible and cost-effective manner, while realizing greater agility in their business models, technology, and product offerings.