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Posts Tagged ‘hybrid robo’

LPL’s Partner for Planned Robo-Advisory Solution

Friday, April 15th, 2016

(by Francis Groves, Senior Analyst)

A few days ago, came the news that LPL, the major U.S. broker dealer has agreed that San Francisco-based Future Advisor is to provide its robo-advisor platform. Like other broker dealers, such as Commonwealth, LPL revealed that it was considering a robo solution last year. In our report on Hybrid Robos (February 2016), we looked at how easy it would be for established players (LPL included) would find it to create a hybrid robo/personal contact integrated model. This question is particularly acute for broker dealers as there are marked differences from a psychological perspective between approach of broker dealer client and a typical prospective user of a pure robo-advisor solution. To put it another way, loyal clients of robos and broker dealers probably expect and receive quite different user experiences. We have seen some bold, clever approaches at integrating the two on the part of some major banks but the LPL/Future Advisor initiative is a first. Future Advisor has branched out into B2B solutions (e.g. SaxoSelect and with BBVA Compass and Royal Bank of Canada) since being acquired by Blackrock in 2015. Our expectation is that the LPL robo solution will at least begin as a discrete entity with its own website but that there will be exciting opportunities a full hybrid robo/broker dealer a little further down the road.

 
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