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According to a new industry report, by using digital platforms to deliver advice at scale, firms can convert a service they have already been providing for little compensation — financial planning — into a revenue stream. Furthermore, the new digital financial planning and coaching offerings from firms like Schwab will trigger a business model innovation in the industry.
Results of the survey found the high-income millennials and Gen Xers who work with a human financial advisor through a digital platform — even if the advisor was virtual — would pay for the service. Aite noted that these results were “an encouraging sign for wealth management firms to monetize their investments in digital platforms.” In fact, the report stated that there was a revenue opportunity of $3 billion to $4 billion for subscription-based services for roughly 22 million Gen X and millennial households earning at least $100,000 — based on a $30 a month subscription price and U.S. census and income data.
https://www.thinkadvisor.com/2020/07/02/next-gen-clients-want-more-than-robo-advisors/
