At the recent panel on The Future of Finance at SRP 2021, CEO of Structured Products at Delta Capita, Mark Aldous, shared insights with other industry leaders regarding the impact of digitisation and what financial advisors and manufacturers can expect and prepare for in the coming years.
Structured Products has not escaped the effects that digitisation is having on the broader finance industry, and the participants are having to rapidly adapt business models to accommodate a market that expects faster delivery and consumer-led customisation.
We’ll cover some of the key points. But you can also watch the replay here.
The Effects of Digitalisation
Digitalisation is happening across the entire value chain, with issuers looking to connect downstream elements such as listing, paying agents, into a more complete end-to-end issuance process. Price discovery is no longer the key differentiating element, an increasingly it is the provision of lifecycle management and use of tools to enable a more efficient and tailor-made product for the customer that are becoming the new determinants of success for product originators.
According to Mark, “In the value chain of the past, ideas were developed, curated, pushed through until they found the right customer. In the customised and digitised world, that whole process is inverted. Higher volume, increased ticket size, latency, and the need to respond to requests immediately changes the whole dynamic.”
For everyone involved in the industry, from issuers, distributors, and advisors to listing agencies and regulators, digitisation and ultimately customisation will be key drivers in the years to come.
Robo-Advisors and Key Differentiators for Advisors
One of the most hyped innovations for financial advisors has been the robo-advisor. For smaller assets – such as stocks and retail portfolios, robo-advisors have become a popular choice for individual investors. But when it comes to higher-end and complex assets, these AI and digitised programs will likely remain supplements for financial advisors.
But that doesn’t mean technology doesn’t matter. The right technology can boost your advisory practices by ensuring smoother product ideation, delivery, knowledge, and security. And as digitalisation allows for a clean audit trail, upgrading to modern technology can help advisors take preventative measures against disputes while keeping customer data safe.
Watch the Replay
Digitalisation, robo-advisors, and new key differentiators are just some of the topics Mark and the other panel members discussed at SRP 2021. In the replay, you can also discover what industry leaders are saying about:
- How the market’s growth and development strategy is being increasingly driven by technology.
- How digitisation is changing the traditional distribution model?
- What customisation really means and how to deliver it?
- The evolving role for intermediaries and multi-dealer platforms.
- How customised products tie into dispute resolution.
- The challenges and potential benefits of a common industry approach
Watch the replay for more on what to expect in structured retail products.
Other panel attendees:
Patrick Chotard, CEO of Lynceus Partners, Filippo Mattia Ginanni, Head of Structured Products & EMTNs at Agora, Paul Stanfield, CEO of the Federation of European Independent Financial Advisors (FEIFA)- Moderator.