Advisors Beware: Subscription-Based Financial Advice Gearing Up
April 30, 2019 by Bernice Napach
American households are increasingly using subscription-priced services such as Netflix and Amazon to fulfill everyday needs. Within the next five years, they will be doing the same for financial services, according to Ernst & Young’s latest NextWave Consumer Financial Services report.
Charles Schwab announced a subscription-priced premium digital financial advisor service last month and if EY is correct, many more subscription-based services in financial services will follow.
“The overall consumer economy has shifted dramatically away from owning and buying to renting and using. The financial services sector has largely avoided this evolution until now,” according to the report, which is based on a survey of 1,500 U.S. consumers split across wealth, age and other demographic factors as well as interviews with dozens of senior business, digital, product and technology leaders across the banking, wealth management, insurance and technology industries.
Its purpose: to understand the underlying reasons consumer engage financial firms and the strategies of firms competing for clients at a time of transformative technological change.