Last year at the ADISA Annual Conference, WealthForge CEO Bill Robbins joined Damon Elder, Publisher at TheDIWire.com for a conversation on Fintech and electronic processing for alternative investments. In this, the final of a three part series, they discuss the risks faced by firms who fail to adopt the technology innovations discussed in Part 2: Straight Through Processing Solutions for Alternative Investments.
Watch the video for the full interview or view some quick takeaways below.
Advisors at firms that do not provide technology solutions risk damaging their relationship with their clients if those clients are accustomed to technology and are able to access solutions through other firms. Firms attempting to recruit new advisors with high net worth clients will be at a disadvantage if they fall behind their competitors in technology that makes those advisors’ lives easier.
Sponsors that are still requiring distribution partners to use paper processes when those advisors are used to transacting digitally risk losing out on the ability to raise capital as advisors may shift their assets to competing sponsors.
Expanding the Industry
As more firms adopt and investments become easier to own, the alternative investment industry will grow. This could also be aided by the generational wealth transfer and demographic shift that is current occurring, putting more money in the pockets of people that grew up in the digital age. For those people the experience of investing in alternatives needs to feel more like checking out on Amazon than standing in line at the DMV.
Disclaimer: WealthForge provides this information for educational purposes only. It should not be construed or relied upon as legal or tax advice.