How many times have you heard something like this: “Advisors need to demonstrate value beyond just investing, or drop their fees to compete with robo-advisors.”
It’s true, but there’s a parallel problem. Many advisors already provide tons of services, from planning to family governance to bend-over-backward-level things like travel planning. But clients don’t understand the value because it’s not quantified. The only reporting they see has to do with investment performance.
However, look at what Carson Group, the big indy firm, is doing. It provides clients with a “Value of Relationship” timeline. It “includes any and all activity that might not show up in a performance report, but is still critical to the client-advisor relationship – such as the sale of a business or the analysis of expected Social Security benefits,” CEO Ron Carson tells FintekNews. “With our new technology, we’re now able to demonstrate and expose the true value an advisor brings to the table and the alpha beyond investment management.”
Carson is a Barron’s Hall of Fame wealth advisor, and his forward thinking is a big reason why. The industry is changing rapidly, and it faces a real challenge updating its client reporting.
Mark Tibergien, CEO of Pershing Advisor Solutions, noted this the other day. “There’s opportunity for fintek innovators to be thinking about a different type of reporting to the marketplace,” he told me. “They can help advisors demonstrate their value.”
Seems like there’s money to be made there, no? And a fintek entrepreneur might start by looking at what Carson is doing. Do you know of a firm that’s got a jump on the reporting challenge we’re talking about? Let me know at firstname.lastname@example.org.