ActVantage for NAW: Portfolio Management: Distributors’ Advantage Over Amazon

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.

See how portfolio management gives distributors a true advantage.



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