Glacier Quarterly 3 - 2018
This issue of the Glacier Quarterly focuses on technology and its impact on our industry. We recently launched our first Artificial Intelligence fund – the Glacier AI Flexible Fund of Funds – which uses machine-learning technologies to address investors’ main concern, that of capital loss.
This issue of the Glacier Quarterly focuses on technology and its impact on our industry. We recently launched our first Artificial Intelligence fund – the Glacier AI Flexible Fund of Funds – which uses machine-learning technologies to address investors’ main concern, that of capital loss.
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Be available<br />
and meet your<br />
customers<br />
where they are<br />
and when they<br />
want you.<br />
the form of banking bots and robot<br />
advisers, it’ll become very difficult<br />
for human financial advisers to<br />
compete on quantitative terms. After<br />
all, banking bots never sleep. They’re<br />
available with instant information<br />
and advice, 24/7.<br />
Lower cost, raised expectation<br />
What’s more, these algorithms and<br />
robot advisers drive end-user costs<br />
down, adjusting consumer value<br />
expectations, and putting pressure<br />
on financial intermediary margins.<br />
For example, Schwab Intelligent<br />
Portfolios are robo-adviser-run funds<br />
that don’t charge advisory, account<br />
service or commission fees.<br />
Similarly, the Easy Equities share<br />
trading platform in South Africa<br />
charges a flat investing fee of just<br />
0.25% –far less than traditional<br />
brokerages and investment firms.<br />
In short, consumers will no longer<br />
stand for fat overheads and<br />
intermediaries who get between<br />
them and their own money without<br />
adding value to their lives. This<br />
means the intermediary must be<br />
much better than a robot to keep a<br />
client’s interest in their services.<br />
Still place for human advisers<br />
That said, human advisers still have<br />
the opportunity to rebuild trust by<br />
building real relationships.<br />
Consumers want control over their<br />
own money and financial<br />
independence. At the same time,<br />
most South Africans are still seriously<br />
underinvested for the long life spans<br />
and lengthy retirements for which<br />
they should be planning. Also, because<br />
many SA millennials are firstgeneration<br />
investors, they’ll benefit<br />
from guidance on how to make good<br />
money decisions.<br />
So as an adviser, it’s crucial to build<br />
human relationships, embrace the<br />
power of network and connection<br />
and take the time to get to know<br />
your customers on a personal level<br />
in a way a bank bot can’t yet do. Be<br />
available and meet your customers<br />
where they are when they want you<br />
– and that’s probably online, on social<br />
media and often outside of traditional<br />
9-5 Monday to Friday banking<br />
hours, which are ‘so last century’!<br />
Most importantly, you need to add<br />
real value to their lives by demystifying<br />
money, empowering them with<br />
financial education, involving them<br />
in the investment process and gaining<br />
their trust for life.<br />
Bronwyn Williams,<br />
Trend Translator and<br />
Future Finance Specialist<br />
at FluxTrends<br />
9
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