Top five challenges facing financial advisers around the world
By International Adviser, 14 Oct 16
Financial advisers name the challenges facing the future of their businesses, from poor market performance and a challenging regulatory environment, according to a survey by Natixis Global Asset Management, which questioned 2,550 advisers across 15 countries.
Advisers across the globe are feeling the effects of fee compression, with 62% reporting that they are pressured to deliver services at a lower cost, says Natixis.
In Hong Kong, 80% of the 150 advisers questioned in the asset manager’s Global Survey of Financial Advisors said they were feeling the pressure to lower fees, matched by 71% of the 300 US advisers it polled. Meanwhile, in the UK and Italy, nearly half (49%) said they were less challenged by fees.
“Now is a critical opportunity for advisers to be explicit in communicating their real value to clients, whether that is asset allocation and investment selection, education and communication, or specialized services such as estate planning,” explains the report.
Technology
Despite citing lower fees (56%) and convenience (46%) as the key advantages to suing online advice, investors also identified some key shortcomings of automation, which often fit with adviser’s views on robo services.
Investors raised concerns about robo-advisers lack of communication on investment strategy (16%) and customer service (13%).
Most advisers (78%) do not see automated advice as the future of the investment industry, nor do they worry that automated advice will make traditional advisors obsolete – 83% say it won’t.
However, advisory firms still need to provide services like an efficient platform to manage assets for lower-balance clients or the assets of clients’ children.
Tags: Natixis
