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Economy
In reply to the discussion: Weekend Economists Simplify Everything! October 25-27, 2013 [View all]xchrom
(108,903 posts)15. What The Financial Services Industry Could Look Like In 17 Years
http://www.businessinsider.com/financial-advisor-insights-october-25-2013-10
The size of the financial markets hasn't grown in the last six years even as the industry has tried to grow, reports Matt Lynch of the Tiburon Strategic Advisors. This has been complicated by other industry trends like 1. Increased expectation for a fiduciary standard. 2. Shrinking pool of advisors that has to deal with "intergenerational transfer of wealth." 3. The growth of "women as a major market" when women advisors market up only 30% of the industry. 70% of widows change financial advisors within a year of their husbands' deaths. 4. Increasing social diversity. 5. Changing technology.
This leads Lynch to posit two 2030 growth scenarios. The first is the "continued growth in the wealth management business" that is "driven by independent advisors, online tools and advice companies, and emerging international markets." The financial industry will have consolidated through mergers and acquisitions. The second sees the industry lose the trust of consumers, prompting them to turn to a self-service model that excludes "advisors and major financial institutions."
He projects four major outcomes. 1. "Leading fee-based financial advisors increasingly will dominate the market. 2. "Retail banks will continue to lose power." 3. "Wirehouses will embrace the fee-based channel and direct resources into acquisition and organic growth of registered investment advisors." 4 "Direct distribution models are also likely to grow as consumers continue to embrace technology to help them meet their financial services needs."
***i think financial outlook scenarios should be given from behind bars.
Read more: http://www.businessinsider.com/financial-advisor-insights-october-25-2013-10#ixzz2ip3UlKXi
The size of the financial markets hasn't grown in the last six years even as the industry has tried to grow, reports Matt Lynch of the Tiburon Strategic Advisors. This has been complicated by other industry trends like 1. Increased expectation for a fiduciary standard. 2. Shrinking pool of advisors that has to deal with "intergenerational transfer of wealth." 3. The growth of "women as a major market" when women advisors market up only 30% of the industry. 70% of widows change financial advisors within a year of their husbands' deaths. 4. Increasing social diversity. 5. Changing technology.
This leads Lynch to posit two 2030 growth scenarios. The first is the "continued growth in the wealth management business" that is "driven by independent advisors, online tools and advice companies, and emerging international markets." The financial industry will have consolidated through mergers and acquisitions. The second sees the industry lose the trust of consumers, prompting them to turn to a self-service model that excludes "advisors and major financial institutions."
He projects four major outcomes. 1. "Leading fee-based financial advisors increasingly will dominate the market. 2. "Retail banks will continue to lose power." 3. "Wirehouses will embrace the fee-based channel and direct resources into acquisition and organic growth of registered investment advisors." 4 "Direct distribution models are also likely to grow as consumers continue to embrace technology to help them meet their financial services needs."
***i think financial outlook scenarios should be given from behind bars.
Read more: http://www.businessinsider.com/financial-advisor-insights-october-25-2013-10#ixzz2ip3UlKXi
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