Blog
In the past decade, we’ve seen a huge shift in the ways people access and use financial services. Banks are more focused on serving customers through digital experiences than brick-and-mortar branches. Today, many non financial services brands are embedding various financial products within their platforms and leveraging APIs to provide customers with access to innovative and new banking, credit, savings and payments solutions. As a result, today’s consumers have more flexibility, control and options than ever before.
This is true even in wealth management, a sector that typically relies on human relationships. With robo-advisors and direct-to-consumer investing platforms, it’s now easier for people to access services. They can take an active role in managing their finances from the comfort of their own homes. They may not even need to talk to a human advisor.
So, what does this mean for traditional advisor firms that have historically emphasized human relationships? What can smaller firms do if they don’t have the technology budget to compete with new age players? Are client-advisor relationships a thing of the past? Not at all. Advisor firms can embrace innovation by partnering with tech players. And they can become even more indispensable to their clients.
It’s easy to worry about new technologies. After all, tech is already changing the way people invest. Advisors will have to adapt and grow to serve their clients. But that doesn’t mean algorithms and AI will make human advisors obsolete. When it comes to wealth management, the interpersonal is irreplaceable.
Just look at venture capital for proof. VC-backed companies are developing proprietary technology to support human-led RIA firms. Why? Because they understand how vital relationships are. They know instinctively that trust is the one thing you can’t automate.
This human element is one reason the industry is so competitive. It may be large—with over $7 trillion in assets—but many RIA firms are still competing for their own slice of the pie.
In such a competitive industry, larger firms have a built-in advantage: support staff. These employees give advisors at larger firms more time to spend with clients. Perhaps it’s no surprise big players tend to dominate the industry. So what can smaller firms do to compete? The answer might be simpler than you think: partnerships.
Don’t have the resources to hire insurance professionals? Partner with an insurtech instead. Want to give clients more banking and savings options? Work with a fintech to
offer more innovative banking and savings products to clients. Firms can go even further using APIs to create tailored digital experiences. They can also broaden their offerings with white-labeled financial products. These custom-branded products are a powerful tool for increasing retention.
Strategic partnerships can help small firms compete with larger ones. They won’t need deep pockets or a huge staff. And they’ll be able to target specific segments. For example, some firms cater to an older demographic. They can offer curated retirement annuities, as well as estate planning. Firms focused on affluent customers might offer income-generating products, such as structured notes.
The right partners can even help with the administrative burden. They don't just empower firms to launch new products. They also assist with management, servicing and reporting. This levels the playing field. Small firms can diversify their offerings and focus on customer experience without adding overhead.
Ultimately, RIA firms want the same thing as consumer fintechs and wealthtechs. It’s the same thing consumers want, too: more value for their money. Everybody benefits when firms can do more for their clients.
So at Gainbridge, we’re not just shaping the next generation of annuities. We’re empowering advisors to take part. Our platform allows RIA firms to meet their clients’ needs like never
before—with tailored offerings, a seamless digital experience, and better returns. So you can deliver more value with less stress.
Jayant Walia
Jayant is a director of business development at Gainbridge®.
