Online investing has seen major growth in the past ten years. Growth in online investing is only expected to continue, if not accelerate, in the next decade or so. But even with past and projected growth, online investing is still missing as part of the overall offer of many financial institutions, including many direct sellers and virtual banks.
Our latest eBook outlines 8 reasons why financial institutions should offer online investments today—and in particular, guided online investing, including:
State of the Industry
– Advisor retention – Due to the pressures advisors are facing to do more with less, it’s no surprise that advisors are on the move from one firm to another. Find out how offering guided online investing can incentivize advisors to stay.
– Increase share of wallet – The growing desire for one-stop shop financial services and new competitive players entering the market are putting the squeeze on profits. Guided online investing can mitigate this by helping financial institutions get more out of current customers and encourage brand loyalty.
– Investor demand – Shifting consumer demands require financial institutions to keep up with financial services trends. Investors are becoming more tech-savvy and are demanding that their banks respond: offering guided online investing is one way to address this.
– Attracting future investors – Younger investors are known to be driving the DIY trend across the board—and financial services is not exempt. Find out how offering guided online investing will enable firms to capture this market segment and make them customers for life.
– Low-cost options – A crop of competitors offering low-cost investment options have got investors intrigued and questioning why they are paying more for (seemingly) the same offer. By offering guided online investments, financial institutions can keep investors from leaving to take advantage of low-cost options.
- Technological Capabilities– Targeting niche segments – Ensure that worthwhile cohorts are being addressed—even highly targeted ones that seem challenging and inefficient to reach through conventional methods. The ability to target niche market segments can be efficiently and effectively done by enabling technology, such as guided online investments.– Enable continuous innovation – By leveraging technology, financial institutions are better able to innovate continuously, quickly, and at a lower cost of entry. Guided online investments is just one way that can be achieved.– Technology is now better than ever – Five years ago, adopting technology to offer online investments would have been more risky; the technology and market had not really been tested and the industry still had a lot to learn through implementation and experience. But today, it makes much more economic sense and not offering online investments is simply not an option.Given the state of the industry, consumer trends, and the advancement of technological capabilities in this space, financial institutions should seriously consider including guided online investments in their strategic roadmap.