Cloudcamp Chicago Nov 2104 Fintech - Aziz Lalljee
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Transcript of Cloudcamp Chicago Nov 2104 Fintech - Aziz Lalljee
"Trends and Transparency in Investment Advisory" !
Aziz Lalljee, Co-founder of Finom !!Tweet: @FinomInc #cloudcamp
#cloudcamp @CloudCamp_CHI
Sponsored by
Hosted by
Aziz Lalljee Co-CEO & Co-Founder
Trends and Transparency in
Independent Investment Advisory
CloudCamp Chicago
November 3rd, 2014
Investment Advisory Industry
Technology as Enabler: Independents
Technology as “Disruptor”: Robo-Advisers
Technology MIA: Adviser Selection and Analytics
Finom: Transparency and Personalization
Total US Household Investable Assets ($27.4 T)
$500K - $2M:
$8.1 T
$100K - $500K:
$4.6 T
< $100K:
$1.6 T
> $20M:
$2.1 T $10M - $20M:
$2.1 T
$5M - $10M:
$3.1 T
$2M - $5M:
$5.7 T
TO ADD:
All Households
$27.4 T
US GDP:
$16.8 T
Source: Cerulli Associates, 2012; Morningstar, 2013 Source: WorldBank.org
The Managers
Other (9%)
Independents (17%)
Broker/Dealers (34%)
Wirehouses (40%)
UBS, Wells Fargo, Morgan
Stanley, Merryl Lynch
LPL, Raymond James, etc.
Registered Investment
Advisers
Insurance and Bank
Broker/Dealers
Source: Cerulli Associates, 2012; Morningstar, 2013
The Independents
$2.2 - $3.1 T Double Digit
Growth
Growth Drivers
Owner v. Employee
Asset Management v.
Asset Gathering
Fees v. Commissions
(Services v. Products)
Independent, Fee-only
Fiduciary: Gold Standard
Large Institutions:
Integrated, Mainframe
Legacy Systems
Independents:
Dispersed, Smaller,
Fragmented, Early
Adopters
Source: RIA Database; Morningstar, 2013
Structural
Tailwinds
Technological
Implications
Technology As Enabler of Independents
To Go Independent…
Wide variety based on services and sophistication
Range from: RIA In A Box (outsourced compliance); TAMPs; HighTower (bespoke platform)
Improve Practice Management…
Trade Execution and Rebalancing
Financial Planning
CRM
Performance Reporting
Integrations and Linkages
Robo-Advisers
Issues?
Sustainability: Valuations
Survival: Asset Flight
No Financial Planning or
Auxiliary Services
No Personal Relationship
New Models?
Proprietary v. White Label
Unbundling of Services
Hybrid Advisers
New Entrants (Advisers,
Funds, Tech Companies)
Still Very Early
A Sense of Proportion?
2%
% That WouldRecommend
1 - My-Way Investment Advisors Survey
2 - Boston Consulting Group
30%
% Satisfied(Females)
3 - Tiburon Report
Satisfaction Rates For Investment Advisers…
% Satisfied
44%
Thank you!
https://www.finom.com
Aziz Lalljee Co-CEO & Co-Founder
CloudCamp Chicago
November 3rd, 2014