Dynamics of Digitisation and Disruption for Trusted Advisors

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The two key dynamics of digitisation and disruption heightens both paradigms of the opportunities that exists and potential threats.

In the typical ‘trusted advisor’ spaces such as; Banking, Wealth and Insurance the way it has been, is set to change. The ‘Institutional’ foundations are not crumbling but they are flakey. As customer preferences and trends set the new scene.

My recent experience of transferring services for my Financial Planning, reminded me just how much opportunity there is in the ‘trusted advisor’ space for companies that are able to leverage their ‘sticky’ relationship with a customer and provide a more complete package. How this partnership, a valued relationship and trusted advisor, could easily move beyond my personal wealth strategies to much more. To mortgage brokering, my small business services; legal and accounting, and many more typical ‘trusted advisor’ roles being played by professionals across multiple market segments. Disruptive thinking? Maybe, but why couldn’t that need be fulfilled? That would make it much easier for me the customer in this instance.

Digital trends are changing this environment, and these trusted advisor roles, in which we operate and are giving rise to two key dynamics; digitisation and disruption.

What is Digitisation for Trusted Advisors?

  • Where products, processes and channels become digitised leading to new efficiencies
  • Direct competitors emerge within existing industry structures
  • Prices become clear and transparent
  • Social and web/mobile centric behaviours become the standard

 What is Disruption for Trusted Advisors?

  • Revenue and cost structures are reset
  • New value propositions appear enabled by information, mobility and social connection
  • Risk that new entrants disintermediate1 existing customer relationships
  • Risk of becoming commodity provider and/or product wholesaler
  • Pricing dynamics change, based on transparency and information value
  • Competition no longer within industry boundaries

What does this mean for the ‘Trusted Advisor’ Relationships? Our institutional or traditional Trusted Advisor relationships have had a relatively low level of digitisation, and appear to have been sheltered from possible major disruption. However, business information is increasingly able to be tracked, analysed and used in a disruptive manner (eg. credit data, accounting data, merchant and customer spend data, property data).

Many institutions have a high cost to service and a low perceived value to many customers, and there is becoming an increasing price transparency and customer financial literacy. There are options to respond to these challenges. Get ahead of the curve and lead disruption of the industry – broaden your reach of advice while lowering the cost of advice significantly.

Some of the key digitisation and disruption issues (hot topics) that are being discussed are:

  1. Are our digital distribution channels effective enough for the new wave of consumer needs?
  2. Are we meeting the rising demand or falling short on customer expectations with regards to digital consumption?
  3. What is our positioning relative to your competitors?
  4. Are we missing an opportunity cost associated with digital document and knowledge management options that are available?
  5. How big is that cost opportunity?

Digitise and disrupt you can’t just choose one. In order to broaden your exposure, protect your reach of advice, while lowering the costs to serve, you need to do both. These are the new dynamics of digitisation and disruption for Trusted Advisors.







  1. Finance the elimination of such financial intermediaries as banks and brokers in transactions between principals, often as a result of deregulation and the use of computers
By | 2017-05-12T10:02:33+00:00 August 12th, 2014|Uncategorised|2 Comments


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  2. Peggy 28/12/2016 at 10:37 - Reply

    That’s a skilful answer to a difficult question

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