By 2030, an estimated 80 percent of heritage financial services companies will go out of business, struggle for relevance, fail to use technology to change their business model, or become commoditized, reported Real Intelligence LLC, a financial services firm in Connecticut.
“30 percent of advisers will exit the business in three to five years,” predicts Jeff Mount, president of Real Intelligence. “It’s imperative that the financial industry pivot its business model to align with new-age tech.”
It is forecasted that “robo-advisors” will manage around $4.6 trillion of consumer money by 2022, with more than 200 robo-advisor companies currently active in the United States alone. Yet, the financial landscape is ignoring and bashing the rise of robo-advisors, who are set to replace conventional advisers and take client orders, according to Mount. With the rise of AI, Mount says financial advisers need to swim upstream and target “middle-class m