As investment management becomes commoditized, advisors need to expand their services to avoid fee compression. Clients will increasingly see value outside of investments in things like tax planning, estate planning, and life coaching. As society moves away from investment management, there is a movement toward wealth management. To implement this movement, technology will be instrumental in delivering these commoditized services.
See Dan Jamieson, Advisors Warned to Expand Beyond Investments, Financial Advisor, October 26, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
