Building a successful, cost-effective advice model for mass-market and mass-affluent clients will require advisor experimentation with communications and advice tools.

Boston, October 10, 2012 – A new report from Aite Group examines the emerging advice models recently developed by full-service and online brokerage firms to address the financial needs of mass-affluent and mass-market clients. Based primarily on a March 2012 Aite Group survey of 500+ advisors, the report compares three types of direct-channel advice models—full-service, hybrid, and assigned—and discusses how these models are leveraged at online and full-service brokerage firms.

Direct-channel advisors have emerged over the last decade to provide mass-market and lower-tier mass-affluent investors (those holding less than US$250,000 in investable assets) with the advice and service enjoyed by wealthier investors. Direct-channel advisors provide such services through scalable, cost-effective platforms that leverage Internet-based communications technologies and centralized staff.

“Advisors who follow cost-effective hybrid and assigned models face more challenges with engaging clients in advice conversations than do advisors who apply the costly full-service model to direct channels,” says Sophie Schmitt, senior analyst with Aite Group and author of this report. “Wealth management firms should be experimenting with emerging communications and advice tools such as video chat and collaborative advice capabilities, which can help direct-channel advisors engage clients in deeper advice conversations.”

This 44-page Impact Report contains 43 figures. Clients of Aite Group’s Wealth Management service can download the report by clicking on the icon to the right.

Related Aite Group Research:

• Retirement Income and Investor Types: Pre-Retiree and Retiree Differences
• Account Opening Pain Points in the Front Office: Advisors in the Dark
• Adding Expertise to a Financial Advisor’s Practice: Measuring the Contributions of CFP® Professionals

To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com