CASTING A WIDER NET:
SCALING TO SERVICE A MASS
AFFLUENT CLIENT BASE
Top Independent Advisors Summit
Phoenix, AZ | March 19, 2014
Presenters: Martin Bicknell + Steven Lockshin
THE MARKET IS HUGE…
IS EVEN GREATER
While not clearly deﬁned, the market
Number of HH Investable Assets
HNW to UHNW: >$5M
Aﬄuent: $2M to $5M
Mass Aﬄuent: $500k to $2M
Middle Mkt: $100 to $500k
Mass Mkt: <$100k
118 M HH $27.5 Trillion
HH (000) Assets ($ BN)
And more investable retail assets
Individuals are retiring
As individuals retire,
semi-liquid assets become
liquid assets resulting in
$40+ trillion investable
Mass aﬄuent consumers present
an underserved market.
*Identifying the emerging aﬄuent is as much art as science. We
identify them as households that typically are headed by adults
younger than age 45 who have at least some college education
and a minimum annual household income of $75,000.
PwC deﬁnes the mass aﬄuent
consumer segment to include the
• Wealthy: Households with investable
assets ranging from $500,000 to
• Aﬄuent: Households with investable
assets ranging from $100,000
• Emerging aﬄuent*: Households that
are likely to reach the aﬄuent level of
wealth within the next 5-to-10 years
(and as such, are worth getting to
• Given the pricing power of the high net worth client segment, the
Emerging Aﬄuent are less likely to result in price compression.
• The Emerging Aﬄuent is an untapped market that has historically
been overlooked by advisory ﬁrms due to the size of their individual
investable assets, but the collective size of this client segment represents
an enormous opportunity for ﬁrms who can create a business model
designed speciﬁcally for the needs of the Emerging Aﬄuent.
Why focus on the emerging aﬄuent?
Financial institutions struggle to
win the business of the mass aﬄuent.
Lack of physical
& declining trust
Product FocusModel Focus
ADVISORS ARE JUST
STARTING TO FIGURE
OUT HOW TO SERVE
THE MASS AFFLUENT
• Comprehensive Wealth Planning: AdvicePeriod is focused on
providing expert advice in all areas of wealth planning (e.g., trust &
estate, retirement, cash ﬂow management, portfolio tax
minimization, guidance on philanthropy, and risk management)
• Launched in 2014, AdvicePeriod is technology driven, allowing
clients of all sizes to access the services of the ﬁrm
• Entire infrastructure in the cloud
• Completely paperless; all reporting is rendered online
• Predominantly passive
• Leveraging Fortigent UMA / Betterment Institutional for Mass
Aﬄuent client base
AdvicePeriod focuses clients on
the important decisions
necessary to manage their
wealth. By combining actionable
planning advice with objective
AdvicePeriod strives to enable
clients to achieve their ﬁnancial
goals and shape their legacy for
generations to come.
*A person in a position of authority whom the law obligates to act solely on behalf of the person he or she represents and in good faith.
Unlike people in ordinary business relationships, ﬁduciaries may not seek personal beneﬁt from their transactions with those they represent.
ESTATE + TAX
Value that truly impacts your wealth:
Independence by ConvergentTM
• Experienced Professionals: Advisors are well-rounded
professionals with extensive experience working with high
net worth families.
• Independence Interface: Integrated use of technology is designed
to enhance interaction with a client’s wealth advisor. By employing
a variety of new innovations, Independence by Convergent™
delivers timely, individual advice and tools that include:
− Face-to-face video conferencing through a tablet issued
to each client;
− Access to all documents and reporting tools through a
secure online vault;
− Consolidated performance reporting for all your
Independence by Convergent™ assets.
Independence by Convergent™
delivers to the $1 million investor
the strategies and techniques
used by the $100 million
investor through a revolutionary
combination of technology,
ﬁnancial expertise, and personal
• Holistic Wealth Planning: FirstPoint shares the core oﬀering of
MWA which is holistic wealth planning with ﬁduciary responsibility
and no account minimums.
• Technology Oﬀering:
− Online access to account information
− Ease of transitioning accounts
− Account aggregation
− Online vault
− Access to planning and investment tools
FirstPoint Financial is
speciﬁcally designed to meet the
needs of the Emerging Aﬄuent.
FirstPoint has leveraged the
resources of MWA and scaled it
to build the Emerging Aﬄuent
The industry buzz...
• Technology (i.e., Digital Advice) is
already inﬂuencing the industry.
• Leveraging a digital platform will
create operating efﬁciency
(margin) and should help protect
“Technology will be the key that
unlocks the mass-aﬄuent
market for ﬁnancial advisors.”
“It’s almost second nature to
embrace online tools.”
The era of automated advisory is here.
S&P 500 is
1st Internet stock
SEC deregulates brokerage industry
Discount brokers are born; Schwab
1st Consumer ETF launched
Rise of online & discount trading
• Tech driven
• Real time, least expensive execution
• Customers seek guidance
• Access typically for accounts >$500k
• Lowest cost DIY solution
• Data-driven advice
• No minimums
• Highly scalable
Rogers’s Market Segments
“Big Bang Disruption” – being early matters.
The speed of innovation is increasing,
and the cost of failure is decreasing.
I skate to where the puck is going to be,
not where it has been. - Wayne Gretzky“
How are you using technology
to optimize your client experience?
What business are we in? If it's advice, then use technology to more
eﬃciently create space to advise you clients!
• Are you truly using technology today? Ask yourself:
How often do you update your online client experience?
What’s your digital marketing strategy? Retargeting, SEO, SEM,
conversion metrics? Do you conduct A/B testing? Multi-variable testing?
Do you connect with existing and potential clients through social media?
• Are advisors innovating? Do we even have the technical and ﬁnancial
WHAT WILL THE
FIRM OF THE FUTURE
Consumers expect better technology.
Technology is changing the way consumers access ﬁnancial services.
Consumers adoption of tech is dramatically outpacing
their advisors’ adoption and it’s coming from every direction.
The ﬁrm of the future will meet consumer
• Technology enabled
• Mobile enabled for consumers and advisors alike
• Extremely for consumers to access their advisors (chat, video-
conference, online scheduling, etc.)
• Allows self serve (i.e., what banks did with ATMS, airlines with kiosks,
and travel with online web technology)
• Separate advice from product
• Make the complex simple for consumers
• Big data to make better decisions
• Continuous improvement
What is your value proposition?
is the industry talk
– what happens
ﬁgure it out?
The primary value in an
is the planning and
Everything else should
be made eﬃcient.
Today we are a
Active v. passive is a religious
argument beyond this discussion(
Digital Advisor competitive landscape.
MARTIN BICKNELL | firstname.lastname@example.org
STEVEN LOCKSHIN | email@example.com
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