Oleg and Joel discuss the bridging of the gap between financial services and software, the enhanced value proposition it enables and the need to get on board before its too late.

 

 

TRANSCRIPT

Moderator:
Suzanne Siracuse, CEO of Suzanne Siracuse Consulting

Panelists:
Oleg Tishkevich, CEO of INVENT.us
Joel Brukenstein, Founder of T3
Gavin Spitzner, President of Wealth Consulting Partners
Tim Welsh, President of Nexus Strategy

 

Suzanne: And Oleg, what are your thoughts – is remote here to stay? What are you seeing in the Pacific Northwest?

Oleg: I would say there’s just besides the remote work and what’s going on with Covid in the last few months, there are a number of different trends that are emerging, I think. And the result is pretty interesting because don’t forget, we’ve also been experiencing some fee compression pressure along all the different lines of the business. At the same time, Covid hits, this whole remote work, the technology. So I think all these different streams coming together point in an interesting direction that the advisory firms are becoming more tech savvy. They’re becoming more of a technology company.

If you think about how larger advisory firms have been successful. Firms like United Capital or Carson Group, they’ve adopted technology in a big way. There is technology to express their specific unique value proposition to their clients. So I think more and more I see that being the trend now that the clients could be reached across the globe, really, not just in the US, you have an opportunity to really focus your message, create your value proposition that’s backed by technology. And if you think about the legacy idea of advisory business has always been really a services business, right? To the consulting kind of services business. Those firms that are trying to make this more of a Saas business, of breaking that gap between pure services and software, are becoming more successful and frankly, their multiples we see going higher. So, I think these are interesting trends that are sort of coming together that are shaping our industry, that are forcing many firms to rethink what their value proposition of w the future looks like. What are they going to look like two or three years from now, if they’re even going to be there two or three years from now, depending on what path they choose.

Joel: You know, I think you make a good point. Only in another aspect to that is if you think about the whole value chain of financial services, the only ones who really haven’t been impacted much by margin compression are the advisors. If you look at the product manufacturers, you look at the custodians, the broker dealers, everybody’s getting squeezed. And it really hasn’t hit the advisors yet. So one of the aspects or one of the thoughts about technology going forward is – it’s better to get more efficient right now and be prepared for a day where the margins may get compressed rather than being reactive after the fact, because those are the firms that are ultimately going to go out of business, the ones that don’t change and adapt early enough.

Suzanne: Hundred percent, great, great points, everyone.

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Industry trends

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Advisor
Technology

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Digital
Advice

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Practice
Management

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Diversity
and Advocacy
Initiatives

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Executive Leadership