How to embrace change and survive digital disruption
Digital disruption is a trend that’s here to stay and no industry is safe. Traditional industries like manufacturing, transport, retail, tourism and hospitality, print media and entertainment may have been hit first, and hit hard, but it’s only a matter of time before others, including the advice industry, feel the heat.
The banking and finance industry could lose almost a quarter of its revenue to fintech disrupters by 2021, based on a new report by PricewaterhouseCoopers.
The report, ‘Blurred lines: How Fintech is shaping financial services’, says the disruption of the financial sector is already underway. It’s currently reshaping the nature of consumer banking and payments, and a second wave of disruption is making inroads in insurance and wealth management.
According to PwC, the key to survival for businesses faced with disruptive technologies is to find a way to incorporate them into their practices.
It’s therefore critical for advice businesses, including dealer groups, to embrace change and aggressively seek out technology-based solutions that will make them more efficient, reduce costs and improve the client experience.
The next advice industry disruptor
Over the years, many solutions and ideas have been touted as the industry’s next major disruptor, including discretionary managed accounts, scaled advice, robo advice, Bitcoin and Blockchain.
Whether it’s one of those or something new, it’s clear that current advice models need to evolve in order to stay relevant and survive.