Welcome!

Machine Learning Authors: Yeshim Deniz, Elizabeth White, Zakia Bouachraoui, Pat Romanski, Liz McMillan

News Feed Item

New Online Financial Advisor Startups Redefining the Traditional Relationship-Driven Advice Industry

Corporate Insight today released a new study – Transcending the Human Touch: Onboarding and Product Strategy for Automated Investment Advice – that offers a first-hand review of the account opening experience at several leading online advice startups and analyzes the key tactical and strategic questions that “robo-advisors” must answer if they hope to succeed in the increasingly competitive financial advice business.

Transcending the Human Touch offers Corporate Insight’s analysis of the challenges that companies face when delivering advice online without a human intermediary and provides recommendations for addressing these issues. This analysis is based on Corporate Insight’s hands-on experience using these new automated advice services, as well as nearly three years of research on the investing startup space, including interviews with dozens of industry leaders and entrepreneurs. Subjects covered include:

      Active versus passive investment products
Designing the optimal investor questionnaire
Effective electronic client communication
Establishing trust without human interaction
Pricing strategy

This comprehensive report also includes a detailed review of the account opening experience at a dozen innovative startups, including screen captures of the account opening experience and insights into the advantages and disadvantages of each firm’s approach. The companies included in the account opening section of the study are:

   

 

Betterment

     

 

iQuantifi

     

 

Motif Investing

Covestor

Jemstep

SigFig

Financial Guard

Kapitall

Wealthfront

FutureAdvisor

MarketRiders

WiseBanyan

“Onboarding new clients is one of the major challenges facing online investment advice providers, since they don’t have a human financial advisor to guide prospects through the enrollment process,” says Grant Easterbrook, Analyst at Corporate Insight. “Our study highlights the best practices employed by the firms, to ensure investors of all backgrounds and knowledge levels can serve themselves online without human intervention.”

Corporate Insight’s research shows that the business case for providing online investment advice to mass market investors continues to strengthen. In July 2014, the firm collected management numbers for 11 leading startups and found that they had $15.7 billion under management/advice. This represents a 36.5% growth rate since April 2014, when these startups reported $11.5 billion under management/advice.

Leading retail brokerage firms are beginning to take action in response to the challenge posed by these innovators. Charles Schwab, Scottrade and TradeKing are all in the process of rolling out new, lower-cost investment advice solutions and Vanguard is reportedly planning on lowering the minimum investment required to work with its financial advisors.

“The growth of the newcomers and the response of several industry leaders show that there is a significant market for low-cost, low-minimum investment advice solutions” says Michael Ellison, President of Corporate Insight. “Firms in the retail investment industry must have a strategy for contending with these lower-cost providers. Our study will give industry executives a clearer understanding of the competitive landscape in this space, as well as insights into the strengths and weaknesses of key emerging players.”

To download an in-depth preview of the study, click here: http://pages.corporateinsight.com/next-generation-finance-transcending-the-human-touch-study-preview-landing-page.

About Corporate Insight

Corporate Insight provides competitive intelligence, consulting and user experience research to the nation’s leading financial institutions. For over two decades, the firm has tracked technological developments in the financial services industry, identifying best practices in online banking and investing, online insurance, mobile finance, active trading platforms, social media and other emerging areas. The firm helps its clients to remain at the forefront of industry trends and improve their competitive position.

Further information on Corporate Insight is available at www.corporateinsight.com/about-us.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

CloudEXPO Stories
Automation is turning manual or repetitive IT tasks into a thing of the past-including in the datacenter. Nutanix not only provides a world-class user interface, but also a comprehensive set of APIs to allow the automation of provisioning, data collection, and other tasks. In this session, you'll explore Nutanix APIs-from provisioning to other Day 0, Day 1 operations. Come learn about how you can easily leverage Nutanix APIs for orchestration and automation of infrastructure, VMs, networking, and even backup/DR. We'll review available APIs and conduct live demonstrations of integrations and the automating common IT tasks.
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
It cannot be overseen or regulated by any one administrator, like a government or bank. Currently, there is no government regulation on them which also means there is no government safeguards over them. Although many are looking at Bitcoin to put money into, it would be wise to proceed with caution. Regular central banks are watching it and deciding whether or not to make them illegal (Criminalize them) and therefore make them worthless and eliminate them as competition. ICOs (Initial Coin Offerings) are something most have no idea as to what it means and how you utilize it. Where is the "Stamp of Approval" or "Stamp of Legitimacy" on some of these Bitcoin websites (how do you know you are not dealing with a scammer?)
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a member of the Society of Information Management (SIM) Atlanta Chapter. She received a Business and Economics degree with a minor in Computer Science from St. Andrews Presbyterian University (Laurinburg, North Carolina). She resides in metro-Atlanta (Georgia).