There is some concern that the emergence of “robo-advisors” may pose a competitive disadvantage and will ultimately change the playing field for more traditional advisors as millennials in particular; will tend to choose more technology-centric services that directly connect investors with suites of analytic tools to create financial plans over traditional advisory practices.
The human contact may be the most important interaction between financial advisors and clients; yet the “personal touch” is increasingly downplayed. Financial advisory clients are increasingly turning to social media to streamline, and even help manage their investment portfolios. In a recent Accenture study of 400 U.S. financial advisors, 48% of advisors reported that they use social media to interact with investors on a daily basis; while 50% say they have “successfully used social media to convert prospects into clients.” While the benefits of using social media cannot be disputed; at the same time, clients are also looking for “personal communication”. The challenge is for Advisors to exploit the advantages of social media while making sure that the “personal communication” with clients is not ruled out completely.
President-elect Joe Biden’s proposed stimulus package is comprehensive and will likely help to move the economy forward, but direct payments could be better targeted to those in need, say Wharton experts.
In this opinion piece, David Erickson explores how the market for special purpose acquisition companies (SPACs) exploded in 2020 and what may happen in the future.
U.S. President-elect Joe Biden’s promise to forgive student debt might have the unintended consequence of worsening economic inequality, according to new research co-authored by Wharton’s Sylvain Catherine.