Deconstructing the ‘Hybrid Advice’ buzz
Emerging financial technology trends are often accompanied by a lack of clarity around what the actual innovation is, and how it will impact an advisor and their business. The term 'Hybrid Advice' is the most recent example of a buzzword that requires clarification.
According to the Capgemini ‘World Wealth report 2018’, 90% of global banks mark hybrid advice as important, while at least 50% even consider this trend to be of ‘high importance’. And, as more than 57% of global banks have already started transformation programs to implement hybrid advice, the success of these programs will depend of a clear understanding of the concepts, business models and strategy required. However, in the market, we come across different definitions of hybrid advice. This article does not only provide our view on the definition of hybrid advice, but go one step further by outlining how this affects the client journey of receiving financial or investment advice. In addition, we share our thoughts on the challenges, but most of all the benefits for the client, advisor and business in general. Even though the ‘hybrid revolution’ is just getting started, we believe it is crucial to adapt fast but carefully to gain, retain and in the end even grow a loyal client base.