Latest / Bloomberg Intelligence / Lack of Talent's the Main Challenge in Advisory, Tibergien Says

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Lack of Talent's the Main Challenge in Advisory, Tibergien Says · Bloomberg Intelligence

• 0:05
  Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm Pim Fox.
• 0:08
  Speaker 1: Along with my co host Lisa Bramowitz. Each day we
• 0:11
  Speaker 1: bring you the most important, noteworthy, and useful interviews for
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  Speaker 1: you and your money, whether you're at the grocery store
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  Speaker 1: or the trading floor. Find the Bloomberg p m L
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  Speaker 1: Podcast on Apple Podcasts, SoundCloud and Bloomberg dot com. This
• 0:32
  Speaker 1: is Bloomberg Markets. I'm Pim Fox along with Lisa Bramowitz.
• 0:35
  Speaker 1: We are broadcasting from Pershing Insights Conference at the Manchester
• 0:39
  Speaker 1: Hiatt in San Diego. This year marks nineteen years of insight,
• 0:44
  Speaker 1: nineteen years that the company is committed to the success
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  Speaker 1: of its advisors, and we are here with more than
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  Speaker 1: two thousand financial professionals from all over the globe. And
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  Speaker 1: it's my pleasure to introduce one of those professionals. Mark
• 0:56
  Speaker 1: Tuberson joins us. He is the chief executive officer for
• 0:59
  Speaker 1: Persian Advisor Solutions. He is also the author of a
• 1:03
  Speaker 1: variety of books related to financial literacy, such as Practice
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  Speaker 1: Made Perfect, How to Value, Buy and Sell a Financial
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  Speaker 1: Advisory Practice. Mark, thanks very much for being with us.
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  Speaker 1: Thank you, thanks for having what what is the biggest
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  Speaker 1: issue on the minds of registered investment advisors money managers,
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  Speaker 1: and I want to I want to say sort of
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  Speaker 1: not very small shops, but those that may have less
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  Speaker 1: than U fifty people and are not affiliated with a
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  Speaker 1: very large organization. By definition, most registered investment advisors or
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  Speaker 1: small businesses, if you put an SBA filter through it, UH,
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  Speaker 1: and so the experiencemen of the same challenges that any
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  Speaker 1: small business does. Probably the most acute challenges around talent.
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  Speaker 1: So the instinct is to say regulation is an issue
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  Speaker 1: or market threats is an issue, but there is an
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  Speaker 1: acute talent shortage in this business today and that is
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  Speaker 1: creating real mutations on growth from many of these firms.
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  Speaker 1: What is the talent that you're talking about? In particular?
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  Speaker 1: It is the is the is it the ability to
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  Speaker 1: interact with people? Is that the ability to navigate UH
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  Speaker 1: the growing world of robo advisory software and e t
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  Speaker 1: f s. What specifically is the skill that people need? Frankly,
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  Speaker 1: it's a skill in all areas, from direct contact with
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  Speaker 1: clients to the operations and administrative elements of the business.
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  Speaker 1: It's important to know that since two thousand eight, UH,
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  Speaker 1: there are forty fewer financial professionals in this country. Uh,
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  Speaker 1: there are fourteen hundred fewer broker dealers. Uh. And what's
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  Speaker 1: happened is that the industry has taken such a hit
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  Speaker 1: that many people coming out of university are not contemplating
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  Speaker 1: this as a career choice. Is it partly because these
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  Speaker 1: salaries have gone down? No, Actually, this is one of
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  Speaker 1: those great careers where you get financially rewarded, intellectually stimulated,
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  Speaker 1: you get opportunity to act independently to profoundly impact the
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  Speaker 1: lives of others. So just to add long walks on
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  Speaker 1: the beach, it's a pretty good personal adds and and
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  Speaker 1: no no retirement target in terms of when you have
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  Speaker 1: to leave the practice. Nothing is forcing that. Uh. And
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  Speaker 1: so if you think about being a young student looking
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  Speaker 1: for a career that's fulfilling and rewarding, then this certainly
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  Speaker 1: becomes one of those places to to come to for
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  Speaker 1: what it's worth. A couple of years ago, we asked
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  Speaker 1: our reverse mentor group, this is a group of millennials,
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  Speaker 1: to enquire among the friends who chose not to come
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  Speaker 1: into this business why they said not and the first
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  Speaker 1: reason why didn't study finance in schools? So never considered
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  Speaker 1: as a career too they thought that it was just
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  Speaker 1: a sales job. And three, they perceived the industry as
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  Speaker 1: being corrupt. And so when you have those elements playing
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  Speaker 1: against the profession, uh, none of which are true, by
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  Speaker 1: the way, Uh, it makes it very difficult for us
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  Speaker 1: to contemplate how we're going to recruit people to the business.
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  Speaker 1: For those of us who remember, there used to be
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  Speaker 1: training programs in a variety of the big brokerage firms,
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  Speaker 1: those have basically disappeared. Is there anything that replacing that?
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  Speaker 1: So one of the big challenges I think that that
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  Speaker 1: is creating this is we used to have big, large,
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  Speaker 1: employer based financial institutions that would recruit people and create
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  Speaker 1: a career path for them. Now what we have is
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  Speaker 1: a more fragmented industry many small businesses. There are twenty
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  Speaker 1: eight thousand registered investment advisors, mostly independently owned. Most of
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  Speaker 1: them don't have a human capital strategy. So it's really
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  Speaker 1: more of an industry crisis than an individual business crisis.
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  Speaker 1: And it's one of those things that we have to
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  Speaker 1: think about, how do we appeal to young people earlier
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  Speaker 1: and how do we help those small businesses become more
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  Speaker 1: proficient at recruiting and developing talent. You know, I'm I'm
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  Speaker 1: compelled by the idea that there's a shortage of talent
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  Speaker 1: at a time when the industry is broadly believed to
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  Speaker 1: be contracting. We hear so much about consolidation, about the
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  Speaker 1: cost cuts that are going on broadly across the investment industry.
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  Speaker 1: How do you square these two ideas? Well? Frankly, there's
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  Speaker 1: an oversupply of clients and an undersupply of people to
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  Speaker 1: provide advice. So well, let me you're talking about clients,
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  Speaker 1: can you be a little more specific Which clients in
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  Speaker 1: particular are looking for advisors and and and are sort
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  Speaker 1: of creating opportunities. These would be individuals at different income
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  Speaker 1: and wealth classes. Uh, the robo so called robo movement
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  Speaker 1: is is really enhancing the experience that advisors have with
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  Speaker 1: with individuals rather than replacing it. So that hasn't yet
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  Speaker 1: proved to be a threat unto itself. Consolidation is true
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  Speaker 1: at least among the employer based firms because they're thinking
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  Speaker 1: of return to shareholders. Among the independent firms, the rate
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  Speaker 1: of growth has been phenomenal. There were seven dred and
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  Speaker 1: fifty new r A s that we that were formed
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  Speaker 1: last year alone, so consolidation is really happening UH. If
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  Speaker 1: you ignore the large companies for a minute, the consolidation
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  Speaker 1: among the smaller firms is occurring because these businesses are
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  Speaker 1: trying to get to critical mass. They recognize that they
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  Speaker 1: have to behave like a business. They have to think strategically,
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  Speaker 1: have a human capital plan, focus on operating efficiency. So
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  Speaker 1: we're not seeing consolidation happen because old advisors are dead
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  Speaker 1: or dying. It's happening because young advisors are thinking, how
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  Speaker 1: do I build a real business that's enduring. What if
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  Speaker 1: you could speak a little bit about the compensation programs
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  Speaker 1: that exist the models, because previous to coming to Pershing,
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  Speaker 1: you are partner in charge at Moss Adams in Seattle,
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  Speaker 1: the accounting firm, and you know the incentives for fee based,
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  Speaker 1: for UH commission based. And wonder if you could see
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  Speaker 1: see your way towards the future what you think would work.
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  Speaker 1: Because we know what lawyers do, they charge by the hour.
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  Speaker 1: Accountants that may be a negotiated UH compensation plan. What
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  Speaker 1: do you see happening in this space? There's some big changes,
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  Speaker 1: But I'd make a distinction between the revenue generation methodology
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  Speaker 1: and the way people would get paid once they're inside
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  Speaker 1: the firm. So first is the relationship between the advisory
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  Speaker 1: firm and the client. This is the only profession I
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  Speaker 1: know where where the client pays based on the value
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  Speaker 1: they bring rather than the value of the professional brings.
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  Speaker 1: The more you have, the more you pay, which is
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  Speaker 1: an odd sort of would be like right in the
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  Speaker 1: legal profession, for example, a lawyer charges you whatever the
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  Speaker 1: lawyer charges you, it doesn't matter what your bank account
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  Speaker 1: says exactly. Would be like it would be like a
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  Speaker 1: doctor charging me by the pound. I couldn't afford them,
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  Speaker 1: so I'd have to think about that the So one
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  Speaker 1: of the shifts that's happening is more of a consistent
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  Speaker 1: approach to fee charging. And in fact, a study done
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  Speaker 1: by Bob Various recently showed that of advisors are actually
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  Speaker 1: charging a retainer either instead of or in addition to
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  Speaker 1: an asset management fee. So there's a shift towards a
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  Speaker 1: more fixed structure the variable compensation model around compensation around commissions.
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  Speaker 1: As an example, Pershing being the largest clearing firm in
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  Speaker 1: the US, we've observed since two thousand and eight that
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  Speaker 1: assets on our platform have grown from five percent of
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  Speaker 1: the total tot of the total. So the shift to
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  Speaker 1: is a more advisory fee oriented type of approach is
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  Speaker 1: reflected in our client base quite clearly. Do you think
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  Speaker 1: that more people are seeking out financial advisors in order
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  Speaker 1: to get guidance about how to use ETFs? In other words,
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  Speaker 1: there's this feeling that they're all these passive investments that
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  Speaker 1: have relatively low fees. Perhaps it's worth paying a little
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  Speaker 1: bit more to get some advice and how to invest
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  Speaker 1: in how to allocate. I think what you find among
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  Speaker 1: most advisors is that they use some sort of passive
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  Speaker 1: instrument as a core solution, and then the satellite might
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  Speaker 1: be active instruments like mutual funds or even individual securities
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  Speaker 1: in some cases. But the reason that most people are
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  Speaker 1: seeking out advisors is because their lives of lives have
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  Speaker 1: become more complex. What we're finding it's not just about investing,
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  Speaker 1: but it's about the complexity of choices that people have
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  Speaker 1: to make around cash flow, around how long will they
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  Speaker 1: live and can they will they have enough to endure,
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  Speaker 1: about a state planning about where they'll live. So these
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  Speaker 1: become choices that as individuals become um more consumed with
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  Speaker 1: the complexity of their lives, they have to seek professional
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  Speaker 1: guidance and what they're doing. And I think this is
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  Speaker 1: one of the reasons why we find so many people
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  Speaker 1: attracted to this business who are not necessarily finance professionals,
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  Speaker 1: but really human professionals with a with a capability around finance.
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  Speaker 1: I want to pick up on that because this idea
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  Speaker 1: of consistent guidance. You go to a doctor when you're sick,
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  Speaker 1: you seek legal advice when you need it, But with
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  Speaker 1: a financial advisor, whether you're managing the money of an
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  Speaker 1: individual or a small business and their pension plan, that's
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  Speaker 1: an ongoing relationship. It should be, because our lives UH
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  Speaker 1: don't start and stop with one conversation UH, and even
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  Speaker 1: in our health I I use the concierge program at
• 9:50
  Speaker 1: New York Presbyterian UH as a as an ongoing relationship.
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  Speaker 1: I find I have more ailments since I've done that.
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  Speaker 1: But but what we see is a real chang change
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  Speaker 1: in how people are thinking about their relationship with the advisors.
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  Speaker 1: So clearly what makes a difference is that when we
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  Speaker 1: look at how people are engaging with the advisors, they're
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  Speaker 1: trying to deal with more issues that are regularly scheduled meeting.
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  Speaker 1: I mean, for example, if you're going to meet every
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  Speaker 1: three months, is that enough or how should you do it?
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  Speaker 1: Rather than just wait until you have some catastrophe in
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  Speaker 1: the market or some problem with an individual's finances, I'll
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  Speaker 1: personalize it in our own example of my wife and
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  Speaker 1: I have worked with the same advisor for over ten years.
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  Speaker 1: We have quarterly meetings, but we have regular communication via
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  Speaker 1: email on different issues, on different questions. Uh. And that's
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  Speaker 1: an ongoing relationship. And the significance is that they're not
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  Speaker 1: just reporting on investment return. They're reporting on the choices
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  Speaker 1: that we're making and whether or not we're progressing towards
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  Speaker 1: implementing it. I'm sure a lot of people who are
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  Speaker 1: closing getting closer to retirement staff at night worrying, So
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  Speaker 1: I'm sure it would be better for them just to
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  Speaker 1: have a conversation with somebody in a more regular basis.
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  Speaker 1: Mark de virgin, thank you so much for joining us.
• 11:05
  Speaker 1: Mike di virgin is chief executive officer of Pershing Advisor
• 11:08
  Speaker 1: Solutions and New Joins. Is here where we are broadcasting
• 11:11
  Speaker 1: from Pershing's Inside twenty seventeen conference at the man Chance
• 11:15
  Speaker 1: at Manchester. Grant Hyatt, thanks for being here. I'm Lisa
• 11:31
  Speaker 1: brom Woy's I'm here with the PIM Fox and we
• 11:33
  Speaker 1: are broadcasting from Pershing's Insight seventeen conference at the Manchester
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  Speaker 1: Grand Hyatt in San Diego, where more than two thousand
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  Speaker 1: financial professionals are here talking about the future of their
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  Speaker 1: industry and one big question that keeps coming up. The
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  Speaker 1: big elephant in the room is what roll will roller
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  Speaker 1: advisory services play in their futures. Here with us as
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  Speaker 1: Simon Roy, president and chief executive officer of gems Aposilicon
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  Speaker 1: value based firm that was acquired by invest Goo last year. Simon,
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  Speaker 1: I'd love to hear your perspective on the robro advisory
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  Speaker 1: industry and whether it is starting to take over some
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  Speaker 1: of the jobs that previously were filled by humans in
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  Speaker 1: the advisory industry. Yeah, thank thanks, You appreciate the opportunity
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  Speaker 1: to share perspective on this. I think um technology has
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  Speaker 1: been sweeping through many industries. We've seen it in media,
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  Speaker 1: we've seen it in commerce, we've seen it in travel,
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  Speaker 1: and so those same same trends that have driven it,
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  Speaker 1: which is consumer adoption of technology, are starting to be
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  Speaker 1: felt in the financial services industry. And so the initial
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  Speaker 1: robo advises that came out appeared to be barbarians at
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  Speaker 1: the gate. Right, They're gonna tear down the edifice of
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  Speaker 1: the financial services industry, take over the market, and everyone's
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  Speaker 1: going to be using robo advises, just like they use Amazon, Google, Netflix.
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  Speaker 1: Hasn't turned out that way. Uh, investing is different. It
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  Speaker 1: is a very emotional issue. It's very high complexity and
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  Speaker 1: consequence for individuals, and so the role of the advisor,
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  Speaker 1: the role of judgment, the role of expertise is quite critical.
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  Speaker 1: And so we've seen we have not seen that sort
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  Speaker 1: of hockey stick growth that we've seen in some of
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  Speaker 1: the other technology sectors in financial services. And what we're
• 13:25
  Speaker 1: seeing is a trend towards the adoption of technology by
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  Speaker 1: financial services firms to enable advisers, essentially creating a bionic advisor,
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  Speaker 1: a combination of the best of of people in relationships
• 13:39
  Speaker 1: with the best of technology, and that that's essentially the
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  Speaker 1: business gym step is in. I want to see if
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  Speaker 1: we can take one step deeper into the pool here,
• 13:47
  Speaker 1: because let's say you are a registered investment advisor and
• 13:53
  Speaker 1: you are on the black Rock platform, or you're using
• 13:56
  Speaker 1: t du merrit Trade or you're using Northwestern or Pershing
• 13:59
  Speaker 1: or whatever, but you've got a platform. You have your
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  Speaker 1: own digital what they call wealth management platforms out there. Um,
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  Speaker 1: what gem STEP I understand does as well as many
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  Speaker 1: other some other competitors, is you are able to offer
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  Speaker 1: online advice having to do with portfolio perhaps construction or allocation,
• 14:22
  Speaker 1: but in relationship to the registered advisor. Is that accurate? Yeah?
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  Speaker 1: That So essentially the business GYM STEP is in is
• 14:31
  Speaker 1: helping connect investors with advice and quality advisers. And so
• 14:35
  Speaker 1: we do this by providing a platform, a digital advice
• 14:39
  Speaker 1: platform GYM STEP Advisor pro to advisory firms. So our
• 14:43
  Speaker 1: clients are the registered investment advisors or the broker dealers
• 14:46
  Speaker 1: or the banks, and we provide a platform. They put
• 14:50
  Speaker 1: their logo on it. It's their platform. We're a technology
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  Speaker 1: service provided to them. But what it enables, what it
• 14:56
  Speaker 1: enables them to do is to have a prospect or
• 14:59
  Speaker 1: a client go through that same process that they would
• 15:03
  Speaker 1: sitting in front of an advisor. So answer questions about
• 15:07
  Speaker 1: what goals are important to them retirement, college savings in
• 15:11
  Speaker 1: the same way as they would if they were sitting
• 15:13
  Speaker 1: with someone, Um, fill out a restaurants question, a very
• 15:17
  Speaker 1: friendly question asking about when are you planning to retire?
• 15:21
  Speaker 1: Various questions, how much risk are you willing to take?
• 15:23
  Speaker 1: Are those answers actually read by human beings or is
• 15:29
  Speaker 1: the information that is then uh reported to the client?
• 15:35
  Speaker 1: Where does that information come from? How is that constructed? Yeah,
• 15:39
  Speaker 1: that's a great question. I think if I could. The
• 15:42
  Speaker 1: process essentially allows people to onboard, just like you can
• 15:46
  Speaker 1: download an app on a you know, on the phone.
• 15:49
  Speaker 1: It allows them to onboard as a client if they're ready,
• 15:52
  Speaker 1: without having to talk to the human. But it is
• 15:55
  Speaker 1: they're onboarding to that firm, they have access to the advisors,
• 15:58
  Speaker 1: they have access to the judgment and the experience of
• 16:02
  Speaker 1: the firm, the investment strategies. So to answer your question,
• 16:06
  Speaker 1: the the answers are input into the system, but the
• 16:11
  Speaker 1: way they are responded to, the way they the client
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  Speaker 1: is guided to a portfolio, is based on the judgment
• 16:17
  Speaker 1: of those humans at the firm. So if I'm sitting
• 16:21
  Speaker 1: in front of you as an adviser and i fill
• 16:22
  Speaker 1: out a paper based questionnaire, I'm going to get a
• 16:25
  Speaker 1: risk score based on that I'm going to be put
• 16:28
  Speaker 1: into a portfolio. The fact that I'm entering it on
• 16:30
  Speaker 1: a computer as opposed to on a piece of paper
• 16:33
  Speaker 1: is not going to change the quality of the portfolio
• 16:36
  Speaker 1: and put into It's just easier for you know, Mary
• 16:40
  Speaker 1: on Sunday morning at home to be able to complete
• 16:43
  Speaker 1: this because she has a busy schedule and maybe doesn't
• 16:46
  Speaker 1: want to go to an advisor, doesn't have time. She
• 16:49
  Speaker 1: can complete this, be put into a portfolio that will
• 16:52
  Speaker 1: be well suited to help her get to retirement and
• 16:56
  Speaker 1: get on with her life. And so essentially what we're
• 16:58
  Speaker 1: doing is we're helping these firms take what used to
• 17:02
  Speaker 1: take about three months and put it into twelve minutes.
• 17:05
  Speaker 1: You know, Simon, as you talk, I'm struck by how
• 17:08
  Speaker 1: familiar this feels. I mean, this is basically what we
• 17:11
  Speaker 1: do in most aspects of our lives when we order
• 17:13
  Speaker 1: something online, when we search for airplane tickets. Are you
• 17:17
  Speaker 1: surprised that it has taken as long as it has
• 17:20
  Speaker 1: for the financial industry as a whole to adopt some
• 17:23
  Speaker 1: of these fairly basic technological advances. Uh As as a
• 17:31
  Speaker 1: you know, as an executive of a technology services firm
• 17:34
  Speaker 1: in this industry, I certainly would have liked it to
• 17:38
  Speaker 1: have happened a lot faster. What's the what's the reluctant money?
• 17:42
  Speaker 1: Money is different? Well, hold on when you're when you're
• 17:45
  Speaker 1: connected in in some kind of legal way with somebody's money,
• 17:50
  Speaker 1: it can make things different. Is that the issue with
• 17:53
  Speaker 1: money or is it a different issue with I think
• 17:55
  Speaker 1: it's a combination. One of the biggest issues that that
• 17:58
  Speaker 1: we're dealing with you has behavior change. We're dealing with humans.
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  Speaker 1: Technology is just a means to an end, which humans
• 18:06
  Speaker 1: though that the clients or or the financial adviser, that's
• 18:10
  Speaker 1: the key, it's both. Now. Typically technology has been driven
• 18:13
  Speaker 1: from within the industry e t f s mutual fans,
• 18:17
  Speaker 1: index fans, product based party product, but also a t
• 18:21
  Speaker 1: m S in the banking industry comes from within. This
• 18:24
  Speaker 1: is the first time technology has been driven from you
• 18:27
  Speaker 1: and me, from the consumer, and so the consumer adoption
• 18:32
  Speaker 1: of this technology is actually helping drive behavior change of
• 18:36
  Speaker 1: the advisors, of the home office and of the back
• 18:42
  Speaker 1: office within any every one of these firms. So that
• 18:44
  Speaker 1: has been the constraint getting enough tractions, showing enough adoption
• 18:49
  Speaker 1: by consumers and the opportunity for these firms to say, huh,
• 18:54
  Speaker 1: things are changing. Well, I will tell you the cynic
• 18:57
  Speaker 1: in me wonders. If it's a different money issue, then
• 18:59
  Speaker 1: what is talking about, which is that investment firms have
• 19:03
  Speaker 1: a vested interest in not making a cookie cutter program
• 19:07
  Speaker 1: that people could just input data into and get the
• 19:09
  Speaker 1: answer that's spit out in twelve minutes. That reduces a
• 19:13
  Speaker 1: lot of the workflow and a lot of the legitimization
• 19:16
  Speaker 1: that they might have been able to provide for the fees.
• 19:18
  Speaker 1: So I'm going to take issue with the way your
• 19:19
  Speaker 1: characterize great. Please do when you think about your life
• 19:24
  Speaker 1: as I mean your life cycle as an investor, as
• 19:28
  Speaker 1: looking to achieve your goals, your entry points into investment
• 19:32
  Speaker 1: management maybe a twelve minute process, which is great because
• 19:35
  Speaker 1: it gets you towards advice. The issue we're deating here
• 19:39
  Speaker 1: with here is most people have no access to advice,
• 19:42
  Speaker 1: and so if we can make it easier for the
• 19:44
  Speaker 1: mass affluent and the mass market to actually get decent
• 19:47
  Speaker 1: advice end up with better outcomes. Twelve minutes. That is
• 19:51
  Speaker 1: a phenomenal outcome, But that is an entry point. Then
• 19:55
  Speaker 1: you get married, or you get a big bonus, or
• 19:58
  Speaker 1: you have kids, or maybe there's a parental shoot, your
• 20:01
  Speaker 1: your needs become more complex. You're looking for judgment and
• 20:06
  Speaker 1: so really what we're trying to do is reduce that
• 20:08
  Speaker 1: friction to get in to get decent portfolio advice, but
• 20:12
  Speaker 1: then make accessible the advisors if and when you need them.
• 20:16
  Speaker 1: And that's that bionic advisor. I'm just gonna throw out
• 20:20
  Speaker 1: a couple of words for you, but I want to
• 20:21
  Speaker 1: just give you the context black Rock and the Future Advisor,
• 20:26
  Speaker 1: Fidelity and E Money Advisor, Northwestern Mutual, Learned Vest and
• 20:31
  Speaker 1: now invest Go gemstep. Would it be accurate to describe
• 20:37
  Speaker 1: this industry as one that is taking advantage of a
• 20:40
  Speaker 1: generational shift as well? Because last time I checked, you
• 20:45
  Speaker 1: look at anybody you know who doesn't have gray hair,
• 20:48
  Speaker 1: and there's no paper around. There's no pens or pencils.
• 20:51
  Speaker 1: They're not writing anything. In fact, they're not even taking
• 20:54
  Speaker 1: telephone calls. They're just texting or they're on their mobile devices.
• 20:58
  Speaker 1: That but go on, okay, well but you but you
• 21:03
  Speaker 1: get my point, which is that there's no one today
• 21:07
  Speaker 1: if you're in business and sends you a message, if
• 21:10
  Speaker 1: it's a customer, you're gonna respond to them relatively quickly.
• 21:14
  Speaker 1: But having said that, there are some industries, maybe like
• 21:17
  Speaker 1: the medical industry, try getting the doctor to call you back. Uh,
• 21:20
  Speaker 1: there's some industries which have not embraced the technology. Is
• 21:24
  Speaker 1: that what you found? Clearly the rising tide of digital
• 21:29
  Speaker 1: adoption is just sweeping through the consumer I mean the
• 21:33
  Speaker 1: consumer space. It's not just the millennials. Uh, there was
• 21:37
  Speaker 1: an initial conception that it's the millennials. They're digital. You
• 21:41
  Speaker 1: have a smartphone, Netflix and say, I want to say,
• 21:46
  Speaker 1: is nothing Oh yes, No, No, I was gonna say,
• 21:48
  Speaker 1: I still have some hair that is not gray. I'm
• 21:50
  Speaker 1: not sure I could say the same. But it's you know, essentially,
• 21:53
  Speaker 1: it's all of us, and so we're addicted. Well, it's
• 21:56
  Speaker 1: it's addicted. We're addicted because it is so efficient and engaging.
• 22:01
  Speaker 1: It means you can have access to you know, to services, everything. Well,
• 22:05
  Speaker 1: but that's the point. You have access to everything that
• 22:08
  Speaker 1: previously had so much friction you didn't consume. One of
• 22:11
  Speaker 1: the things you didn't consume was advice. And so firms
• 22:14
  Speaker 1: like Investco look at this and say, we want to
• 22:17
  Speaker 1: add value to our advisory firm clients. Technology is a
• 22:21
  Speaker 1: key key factor going forward. It's a rising tide. We
• 22:25
  Speaker 1: want to make sure that we were able to add
• 22:27
  Speaker 1: that as a as a pillar as one of the
• 22:29
  Speaker 1: value adds you know we can provide. So that's that's
• 22:33
  Speaker 1: the rationale. Well, thanks for providing us with the opportunity
• 22:36
  Speaker 1: to speak with you and learn about the business. Much appreciated.
• 22:39
  Speaker 1: Simon Roy is the president and the chief executive of
• 22:41
  Speaker 1: gem step By Investco. And we are broadcasting from Pershing
• 22:46
  Speaker 1: Insight Seen conference is taking place at the Manchester Hired
• 22:50
  Speaker 1: in San Diego, and this year marks nineteen years of
• 22:54
  Speaker 1: Insight nineteen years. The company is committed to the success
• 22:56
  Speaker 1: of its advisors and we are here along with more
• 23:00
  Speaker 1: than two thou financial professionals from all over the world.
• 23:04
  Speaker 1: This is Bloomberg. Thanks for listening to the Bloomberg P
• 23:10
  Speaker 1: and L podcast. You can subscribe and listen to interviews
• 23:13
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• 23:17
  Speaker 1: I'm pim Fox. I'm on Twitter at pim Fox. I'm
• 23:21
  Speaker 1: on Twitter at Lisa Abramo wits one. Before the podcast,
• 23:24
  Speaker 1: you can always catch us worldwide on Bloomberg Radio.