Javelin Strategy & Research with Will Trout | E208

Trends in advisory and advisor technology.

In today’s episode, Jason is going to talk to Will Trout from Javelin Strategy and Research. He is the director of Digital Wealth Management. We brought him on the show to talk about some of the bigger trends in the wealth and assessment market and how they are potentially going to transform the industry in the next ten years from now on.

Episode Highlights:

  • 00.48: Will says that as the name implies, and from a technology standpoint, we focus on strategy for financial services institutions and large fintech providers and look at the intersection of strategy and technology as to how firms can advance their competitive position using tech.

  • 04.22: The headspace and having a perspective from clients across channels from our bank to brokerage and across jurisdictions in the US, Canada, Europe, elsewhere really lets you think about best practices and how one as an advisor can get help, says Will. 

  • 05.14: Jason asks Will that you are talking about the expansion of private market issuances and crypto as investment categories within the industry, so tell me what your trends are finding there? 

  • 09.04: Will says that the friction that inhibited advisor access to private capital investments still largely remains. iCapital and Cais alone will not solve this problem, particularly when it comes to private equity.

  • 10.16: Jason asks, tell me about what you see in the space of hyper-personalization questions such as direct wealth indexing and breaking traditional trade-offs between customization scales?

  • 13.47: No one product meets the needs of all people, and despite the mass proliferation of package solutions in this industry, you are never going to meet the needs of all people, says Jason.

  • 15.48: To productize direct indexing, you can kind of rule about how it scale and overcomes margins, but the most direct indexing strategies are built around the public equity markets, suggests Will. 

  • 16.31: To move towards retirement income focus demographics are pushing, the boomer generation is retiring, yields are low, and that are fueling interest in annuities and marketplace, says Jason.

  • 20.03: Will asks how do you get a consolidated or holistic view on client assets if they’re starting to morph into all sorts of non-securities, digital assets, and annuities? 

  • 21.16: Industry as a whole needs to figure out ways to pull back and truly look at the complete lifestyle picture of the entire client and consider when it comes time to design whatever portfolio they’re investing in traditional markets, suggests Jason.

  • 23.04: Jason says that we see a more extensive proliferation of specialized software around accumulation plans on both sides of the border and elsewhere.

  • 25.58 Jason asks that the planning industry, with the advent of things like financial therapy and other concepts around financial wellness, is saying we have reached the point where we can be taking care of people’s assets, but now, how do we give them the ultimate version of their lives? 

  • 29.17: Regulatory pressure or force towards a more open advice-driven approach and reconciling these two lines of thinking is super challenging in Canada.

  • 31.16: There is a lot of demand where the firm’s wealth managers fall short on life coaching and addressing the human frailties that define us all, says Will.

  • 37.45: Jason asks will, the reality is every advisor in his unique snowflake wants everything in their way. So how do you see this battle developing, and where do you see it going altogether?

  • 39.03: More relationship-centric advisors trying to diversify into monetized areas rely on their CRM. But, there is a strong split between CRM at the enterprise level and the sales forces that offer a ton of functionality, says Will

  • 44.58: Jason says that the real exciting competitors out there are the no-code platforms on databases like the air tables of the world. If someone gets a no-code CRM tool to wrap together, all the vendors would be fascinated to see that happen.

3 Key Highlights

  1. The definition of alternative investment is changing, but the theme is the same: looking for something different and something new. But the question remains, though, how can financial advisors access these new instruments, says Will.

  2. The growth of platforms like Simon markets has started offering structured notes and bank issues equities and now offering all sorts of non-securities products for most annuities, says Will.

  3. In the Financial therapy association or some specific people in the industry, speak out on the need for personal advice and write about dealing with people in grief, crisis, etc., says Jason.

Tweetable Quotes

  • “We can also survey financial advisors on an ongoing basis that serves as the fuel that drives our insights and works in support of our clients.” – Will Trout

  • “We are going to very much blur the lines between active and passive as part of implementing a hyper-personalized solution. Many firms have built their tech and built their intellectual capital in the house.” – Jason

  • “We created systems to make it cheaper for the people who can’t afford to pay people who know how to give the advice.” – Jason

  • “The therapist might be more adept at figuring out the real emotional issues, which will only help enhance the advisor’s experience.” – Jason

  • “The actual play lets me get as much as the client’s life into the CRM so that I don’t have to go touching any other system. If I have to do something with a client, I connect that CRM system.” - Jason

Resources Mentioned:

Fintech ImpactJason PereiraFintech