Credit: 
(New York)
We wouldn't quite call it a war yet, but there is certainly a major battle going on between robo advisors and their human advisor competitors. Most advisors won't admit it, but competition from robos is hurting, and they are doing a number of things in response. The big changes appear to be significant fee cuts and the adoption of digital solutions to better compete. 64% of advisors are now offering fee discounts and many are starting to completely unbundle their fees. While growth has been strong the last few years, robos are really starting to hurt, with Fidelity Clearing commenting that "With revenue and client growth dropping, RIA firm leaders will have to ensure that they make up in volume what they are discounting in fees".
FINSUM : Robos were always going to drive fees down, but the way things have developed over the last few years, it looks like there is going to be continued robust demand for human advisors. Everything that is happening seems to be part of a general convergence, or hybridizing of the industry.
- RIAs
- robos
- fees
- unbundling
- discounts
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
