WEALTH IN THE DIGITAL AGE THE FUTURE OF ADVICE

Kendra Thompson

Global Head of Wealth Management

Accenture

@KennyT5

What do investors want?

What will they pay for?

How will today’s or

tomorrow’s players deliver

at scale for a profit?

Women today… are undervalued, underserved and

condescended to

Women tomorrow… will take the reins and seek out more control

Millennials today… are challenging the paradigm of the industry

Millennials tomorrow… will pick and choose what they want but

expect great service

Investors today… are told what advice they get based on how

much money they have

Investors tomorrow… will consume advice on their own terms

Before we go further,

Let’s dispel some common myths…

Digital and Human

Advisors Don’t Go

Together

Firms Need to

“Graduate” Their

Clients Through

Offerings

Advice Means

Having a Dedicated

Advisor

Millennials Don’t

Have Money

DEGREE OF DELEGATION

DEG

REE O

F IN

TERA

CTIO

N

PARTIALLY ASSISTED

“I use a robo platform but

have access to

a virtual advisor if

I need help”

DELEGATION

HIG

H

SELF-DIRECTION

LO

W

VALIDATION

AUTONOMOUS

“I handle investing

on my own”

VIRTUAL ADVISOR

“I use a DIY investment

platform but have access

to a virtual advisor when I

need help” ROBO ADVICE

“I use an automated

platform that manages

investments for me”

ZONE OF HYBRID ADVICE

DEDICATED ADVISOR

“I have a dedicated

advisor that I go to for all

of my investment needs”

Firms today are making their best attempt at hybrid advice

but how can they pivot to offer a fluid service that bridges

across all models?

What’s happening in

the industry?

Digital Wealth

Management

Advisor–led

Digital UHNW

Scaled

3 distinct value propositions

The demand for advice is not decreasing but the way investors

want to consume it and how they want to pay for it is changing

Greater focus on a holistic wealth offering Offerings are siloed by LOBs

Advice today… …Advice tomorrow

Based on a client’s assets under

management and net worth

Delivered by flexible value propositions

where clients can choose what advice they

want to pay for

Only available through an advisor Available on both human AND digital

platforms

So what is the future?

• PROVIDE FLUIDITY between

components of the value

proposition

• TRANSITION SEAMLESSLY

between dedicated, semi-

dedicated advice, or no advice

• Enabled by client and advisor

facing DIGITAL TOOLS

• Give more CONTROL to their

clients while emphasizing the role

of advisors as decision validators

• EXPAND FEE STRUCTURE to allow

for pay for service models

HYBRID

ADVICE

Hybrid is more than robo + human

Digital Tools Human Advice Flexible Fee

Structure

PARTIALLY ASSISTED

VIRTUAL ADVISOR

ROBO ADVICE

DEDICATED

ADVISOR

MVPs

The biggest question is how to get

…to there from here…

The complexity lies in how

it will all come together.

Things to keep in mind:

• It’s easier to add than to

change your core

• Fear of “cannibalization”

is limiting pace

Co-launched and

self-built

Hybrid Advice

Building Blocks of

Hybrid Advice

Models

Flexible Fee Options

Integrated &

Flexible Tech Stack

CHANNEL INTERACTIONS AND TOOLS

Scalable Advice

Capabilities

PRODUCTS AND SERVICES

ORGANIZATION AND PEOPLE

Digitally Enabled

and Fluid Workforce

Componentize the

Value Proposition

Deep Advice

Backbone

Collaboration

across Channels

New Performance

and Compensation

Model

Single Approach to

Clients

Thoughtful Data

Approach

Rich Digital

Experiences Robo as a Platform

How will you accelerate your push to

Hybrid Advice Models?

What needs

to be true

for firms to

make

money?

Market leaders

need to get rid

of internal

competition

Regulators need

to catch up

Cost to serve

must decrease

Advice needs to

be a product

What should

you do now?

3

Build on your strengths and

understand the relative importance

of gaps, what you can do yourself and

when you need a partner

1

Have a deliberate strategy,

acknowledge the platform leaders

and think about what position you

want to have in the market

2

Understand what sustainable

differentiation you have and what the

table stakes are

ADDITIONAL READING

1. The New Face of Wealth Management

Clients prefer the best of both worlds: humans and robots.

2. The Future of Wealth Management

A course change looms for all wealth management firms,

regardless of size or clientele.

3. Listening to the Voice of the Advisor: Insights for Wealth

Management Firms

To see how much financial advisors’ roles have changed,

Accenture surveyed 652 financial advisors in the United States and

Canada.

4. Wealth Management for the Modern Investor

Digital technology is transforming the client-advisor relationship.

5. Wealth Transfer: Is Your Firm’s Share Walking Out The Door?

Heir outreach, digitalization and a diverse advisor base are the

keys to success.

KENDRA THOMPSON Managing Director and North America Lead,

Accenture Wealth Management

With over 15 years of broker dealer and advisory industry

experience, Kendra is focused on wealth management

strategy. Based in Toronto, she leads Accenture Wealth

Management in globally.

kendra.thompson@accenture.com

https://www.linkedin.com/in/kendrathompson/

@kennyt5

http://capitalmarketsblog.accenture.com/wealth-

management