"The problem with financial services is the distribution challenge. How do you get your product to market? The typical approach involves leveraging a bank's foot soldiers or partnering with a broker in a pay-to-pay arrangement. The distribution challenge creates a problem: Good ideas and strategies are unable to get to market because the intermediary channel can't maximaze profits. A potential solution: disintermediate financial services! Fortunately, improved investor education, cloud-based advisor technologies, and smart social media marketing efforts are facilitating the disintermediation revolution.
That's why we love the robo-advisor concept. Any asset manager, advisor, or innovator can take their idea, leverage technology, and provide a comprehensive direct-to-consumer solution, cutting out the middle man along the way. Moreover, even if you don't have millions in marketing dollars, your product has an opportunity to sell itself - drumroll please - on merit.
Hat Tip ~ Wesley Gray, PhD, Enterprising Investor, CFA Institute Publication, 09.23.2015
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