Is client centric portfolio management the ONLY sustainable advice business model ?

Plenty of discussion post Royal Commission Question of viability for fee for service advice model without conflicted remuneration Questions of advice renewal, whether see value of it Question of whether consumers will pay for advice in it's raw form, Productised offers, very little money for advisers, any many questions Client tailored portfolios blend advice and [...]

By | October 9th, 2019|Business Model Considerations|0 Comments

The Multiple Benefits of Automated Portfolio Management

A lot of people ask us why Financial Simplicity’s entirely automated and personalised portfolio modelling process is something to sing about. Well the answer lies in the simultaneous benefits that this gives our clients in: Creating value for their clients – by enabling firms to create repeatable and rules based experiences around clients to address a [...]

By | August 16th, 2019|Business Model Considerations|0 Comments

Everything between the customer and their money in a fee for service basis means you are being expected to put pressure downstream and you are being evaluated yourself on value add.

How does this impact wholesale service providers ? Increasingly it is becoming clear that the focus for every service provider between investors and their investments has to combine value for the customer combined with how they interact with adjacent players in the eco system. The trend is increasing that the sustainability of every service provider [...]

By | June 20th, 2019|Business Model Considerations|0 Comments

Full circle, stockbroking being the future of the industry

Are we heading full circle back to broader stockbroking based servicing of private clients?

By | June 10th, 2019|Business Model Considerations|0 Comments

How Fees Can Destroy Your Wealth

A well researched paper from our friends at InvestSMART on the long term impact of fees. Our sense is that as this is better understood that there will be intense pressure to not only justify fees for services, but intense scrutiny of fees associated with investment products and the platforms that they sometimes require [...]

By | October 23rd, 2018|Business Model Considerations|0 Comments

What is defining the new ‘right to serve’ in wealth management

Globally, the reputation of the wealth management industry is under some fire right now, and I cannot see it letting up. In Australia, we are having a Banking Royal Commission into financial services, and wealth management is taking quite some heat. The very public shortfalls from large institutions is now a matter of public record, [...]

By | August 24th, 2018|Business Model Considerations|0 Comments

What is the optimal mind machine balance in wealth management

We are starting to hear a lot about mind machine balance in this rapidly evolving world of AI (artificial intelligence), and the wealth management industry is not immune from such. In short what I understand appears to be generally accepted across the board is: all functions that are operational processes with little or no judgement required [...]

By | August 24th, 2018|Business Model Considerations|0 Comments

Best interest considerations in platform choice for investors

Much debate in Australia at the moment around platform pricing, and with the royal commission going on, the whole subject of what platforms are in relation to the client's best interest is kicking up. My observation is that a lot of this discussion is naturally coming from an industry centric perspective, and incremental improvements from [...]

By | July 26th, 2018|Business Model Considerations|0 Comments

Advisory and Discretionary Portfolio Propositions

One the most read articles on our blog is about the pros and cons of advisory and discretionary portfolio services, and the decision to go one way or the other (or both) continues to be one of the first questions I get asked about by advisers and licensees in our engagement process to help them. [...]

By | October 26th, 2017|Business Model Considerations|0 Comments

Financial advisers set to become the new fund managers

I really like the opening sentence on this article of 'Technology is enabling financial planners to climb the value ladder, but at the same time it is kicking out the rungs behind them as they go.' The growing trend of management margin and service moving to advisers described well here. Financial Simplicity's Nudge service is [...]

By | August 29th, 2017|Business Model Considerations|0 Comments