Whenever we try to predict what will happen in the future, it’s helpful to look at the past. In an editorial from Ubiquity Retirement + Savings CEO Chad Parks, shares his insights on the future of the financial industry. Thanks to technology and artificial intelligence, in 25 years the current financial services business model will become obsolete.
“Humans will be almost entirely eliminated from financial advisory roles. In the next 25 years, artificial intelligence will all but remove the human element from financial advice. Algorithms will become progressively more insightful and accurate, constantly accounting for new information while eliminating the potential of human error.”
In other changes to the industry, over the next 25 years, Parks posits, “I believe asset-based fees will be largely eliminated.” Ubiquity Retirement + Savings has reflected this value in their 20 years of flat-fee services.
How will firms generate revenue in the future if the model isn’t based on commission, assets or a set monthly fee? Looking to tech giants like Facebook, who make money by providing targeted advertising through the mining of metadata may point the way. Financial services could head in that direction too.
