Financial services industry must embrace initiatives
JERSEY CITY: The financial services industry has yet to fully embrace initiatives that will make it relevant to the next generation of investors, as per A new survey of financial professionals released by BNY Mellon's Pershing.
Further, regulatory uncertainty may be overshadowing some of the longer-term challenges facing the industry. The majority (68 percent) of financial professionals responding to the survey acknowledge that reaching new and untapped investor segments will be a key factor in driving growth and that developing a digital advisory platform would help them acquire Gen Y clients (62 percent). Yet, about a quarter (24 percent) of respondents are not considering leveraging a digital advisor platform. Further, only three percent are using a digital advisor platform and a mere two percent say their practice has made the decision to launch one.
As per the study, titled "Business Transformation: Navigating A Path Forward," which was conducted for BNY Mellon's Pershing by the research and advisory firm Aite Group, uncertainty in the political and regulatory landscape is cited as the main challenge to business by 71 percent of respondents, followed by the Department of Labor (DOL) Fiduciary Rule (67 percent), and an aging client base and difficulties in reaching young clients (65 percent).