Main points of discussion
- Pricing for all aspects of the value chain will come under pressure within the next 10 years. We have seen price pressure in the US and that is a trend that’s expected to continue. What happens in the US definitely doesn’t necessarily follow into the UK market but, there are concerns on pricing where we have already seen pressure on asset management and platform pricing as a result of MiFID II disclosure of costs to clients.
- Technology is a recurring theme and there is no doubt that technology will have its role in driving pricing to clients down but, advisers do not see any threat from robo-advisors and their ability to engage with clients. However, all advisory firms see technology playing a big role in client communication and increasing productivity within their businesses.
- We are seeing an increased level of trust in financial technology, evidenced by the huge increase in usage of Banking mobile apps over the last few years. We cannot be blinkered and clients will want a similar interaction with all their financial products.
- Improving the asset weighted average age of client books to have a younger demographic is seen as a key challenge over the next 10 years. Retired clients are obviously in decumulation and the challenge is to attract new/younger clients that are accumulating. Interacting through technology will be a communication method of choice for millennials but, research has shown that millennials will pay for advice.
- Developing an inter-generational advice strategy is key.
- A strategy to remove legacy assets and focus purely on platform assets that will enhance the client experience.
- Long-term health care will become a key product with ageing client banks and providing relevant tax advice.
Expert: Julia Rees, Goldman Sachs Asset Management
Facilitator: John Chapman, Orion Consultancy