Our core growth strategy capitalizes on several long-term industry trends that continue to be valid and strong. One of them being enterprise users’ propensity to buy and adapt newly available digital technology rather than build in-house from scratch.
The enterprise market is huge and varied consisting of asset management firms, banks with wealth management divisions, foundations, endowments and other institutions of varied levels of sophistication. All of them are driven by a desire to build deeper client relationships, help clients navigate through making asset allocation decisions and becoming a relevant added value partner. These participants recognize that the new generation of customers who do value financial advice are cost conscious and appreciate the role technology plays. They also seek to attract younger investors who stand to inherit assets through wealth transfers as baby boomers age. Such firms are however often quite undifferentiated, making it hard to achieve efficiency and scale. Tightening regulation, enhanced fiduciary standards that put investor interest ahead of an advisor, the search for transparency in pricing and the digital revolution are all drivers of change in this space. Enterprise customers seek to build a customized, private-labeled technology platform to support their financial advisors with digital investment solutions and services; one that ActiveAllocator provides.