Silicon Valley is Coming

Paolo Sironi and Maurizio Ravezzi

Technology is a major force in today’s transformation of financial advice because it challenges established financial institutions with digital-only solutions based on enhanced user experiences, which attempt to disintermediate traditional investment relationships. Robo-advisors are born in the fintech ecosystem and exploit the power of digital analytics to create new business models that can potentially transform distribution channels. However, technology can also be an ally of financial advisers because it can speed up their capability to deliver added value that their clients can appreciate and remunerate. This becomes strategic, to service more clients in a world in which margins are squeezed.

INTRODUCTION

The majority of this book has been dedicated to discussing the impact of regulation on the business model of the financial advisory industry, where investors meet investment solutions providers. New regulation is indeed a key engine for transformation, shaping the entire industry to protect investors’ interests (eg, Product Governance). By further constraining the investment solution, via transparency and virtuous suitable behaviour, regulation creates value for the