Financial Planning & Investing Analysis, Pt. 1

Part
01
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Part
01

Financial Planning & Investing Industry: Overview

While investment aggregators and online advisory services have grown exponentially throughout the U.S. market, traditional financial advisory models have shown relatively little decline while simultaneously investing in lower cost, online advising models targeting similar, non-traditional investors as online aggregators.

History of Financial Planning

Overview of Traditional Advisors

Changes in Advisory Technology

  • Robo-advisors grew 15% in 2018 with $257 billion under management. This trend is expected to continue, possibly reaching $1 trillion by 2023.
  • Investing aggregators and robo-advisors are primarily being utilized by demographics not typically represented by traditional financial advisors, specifically millennials and those with modest portfolios.
  • Technology based investment advisors offer a broad array of services similar to traditional advisors ranging from one-time investment advice to longer-term financial planning.
  • Large, traditional advisory firms are integrating investment technology to diversify and grow their business, with 63.6% of experienced advisors utilizing holistic financial planning software.

Sources
Sources