- April 15, 2021
- Posted by: actvguru
- Category: Business plans, Finance & accounting
Amazon poses quite a threat to the distribution industry, considering its capabilities and its size. It’s reminiscent of how discount brokers disrupted the personal finance industry, threatening to devalue full-service brokers entirely.
However, full-service brokers were quick on their feet. They identified the value they could provide that discount brokers could not: A portfolio management approach that was more personal and individual to their clients. Today, full-service brokers are known as financial advisors, and their industry knowledge and attention to their clients’ goals put them in a different league than discount brokers.
In a recent article for the National Association of Wholesaler-Distributors, Brent Johnstone postulates that distributors have an opportunity to apply portfolio management with their customers. The benefits are many, including differentiation, more share of wallet and lower churn rate.