The CEO of LPL Financial, Mark Casady, is skeptical of the robo-advisors and believes only one or two of these companies will survive. Mark believes, “There ... is nothing like sitting with somebody and saying, let’s talk about your financial goals, what money means to you and how we can help you have better outcomes, that’s really what financial advice is, robo-advisors don’t offer that."
But though Casady doesn’t want to own a robo-advisor per se, he does want to provide a like service in terms of value proposition. “I do think we’ll want a response to robo-advice where we can empower advisors with some technological capabilities to help them with the next generation, their client’s children if you will or we have some practices that are focusing on millennials and some of our technologies today already cover what they need,” he says. “But we can do some more work the so-called robo-advice as a competitive response but we don’t see that as a major threat. We see it as an interesting development in the industry. And one in which, it really drives towards lowering your cost as being the right answer.”