BISA Magazine - Quarter 3, 2017 - 32

EXIT STRATEGY

oversight, review and advice. We are also developing a
new Mutual Fund Only account.
X On the need to create a strong value proposition:
I think our program leaders are quite clear that their
advisors' value proposition, and how they support
investors will need to evolve more quickly than it already
has been evolving. What I mean by that is by broadening
the solution set that they're providing to clients; whether
that means an expanded set of products, a more
consistent utilization of financial planning capabilities
to deliver a more holistic approach or strengthening the
service value proposition that they are providing beyond
investment management solutions.
We believe our platform is already set up to help advisors
deliver a holistic approach and solution set for their
clients. We think financial planning will be the lead
method for how advisors will deliver a holistic solution
set. We have integrated financial planning tools, and we
already have a number of financial planning programs for
how advisors can be compensated for that service.
X On evolving to meet the changing expectations
of investors: Our industry must evolve in the way
we deliver an investor experience because investors'
expectations are evolving. Moreover, other industries,
frankly, are forcing that evolution. We have the Amazon
experience that everybody raves about, and we have
a digital environment now in most other industries.
Clients want to see - and are demanding that - such
an environment exists within the financial services
industry. LPL is focused on the investor experience, and
we're going to be expanding our digital offering to better
support advisors in how they support their investors.
X On offering a digital advice platform: That is absolutely a
part of what investors are demanding - not all, but some.
We refer to [LPLs] as an advisor-enabled digital advice
platform. We stay away from the word "robo" because our
solution was built to have advisors aiding in the delivery of
that digital advice. We're seeing advisors think about that
solution for a certain segment of their clients.
If you think about banks and credit unions, they have
been evolving their mobile banking offering and their
digital experience, so this solution really does fit in

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nicely to where institutions are looking to evolve from a
digital perspective.
X On the opportunities in the financial institutions
channel: We continue to feel very positive about the
growth opportunities within the financial institutions
channel. The first thing that I would point to is that
institutions have so much untapped potential to penetrate
more of their members and customers with investment
and insurance solutions. While they've done a really
good job, there's so much more opportunity in that
regard. Second, for the existing clients whom we serve
from an investment and insurance perspective, we see an
opportunity to really broaden the solution set, meet more
needs and ultimately capture a great share of wallet from
the investors that we serve today.
The last thing that I would point to is that we think
banks and credit unions are uniquely positioned to
capitalize on those growth opportunities because they

We think financial planning
will be the lead method for
how advisors will deliver a
holistic solution set.
have a great local brand; they have the infrastructure
to support the point of sale activity; and in many
respects, their existing employee base serves as a
talent development opportunity to grow the number of
people who are able to deliver financial advice to their
clients and members. So, simply said: There's such an
opportunity to serve more clients and to serve existing
clients more fully, and institutions are well positioned to
bring new talent and develop new talent in this business
given their existing employee base. ▲
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