Get ready for more competition from an onslaught of low-cost, web-based advisory firms. Fueled by what industry sources estimate is more than $200 million in venture capital and private equity funding in 2013 alone, a slew of companies are expected to either come out of a trial period or gain traction after earlier launches. These firms are poised to offer consumers a stark choice between the traditional advisory business model and an online experience.
A key question is how the new model will affect existing RIAs. To assess the impact, one industry expert points to the contrast between TurboTax - an online model that had a relatively benign impact on the accounting profession - and travel booking sites Expedia and Orbitz, which decimated the travel agency business.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access