61 connected strategy for asian wealth management ^Top As more connected players such as superapps, platforms and virtual banks increase their presence in wealth management, we expect new revenue models to emerge to appeal to smaller, historically less profitable customers on the pricing dimension, also increasing pricing pressure on more profitable client segments. Benefits for stakeholders The distinctive benefit of a connected strategy for firms is breaking the willingness-to-pay and fulfillment cost tradeoff. In addition, a connected strategy offers a range of benefits for clients, advisors and regulators. • Benefits for clients: The Holy Grail from a client’s perspective is personalized, timely and holistic advice at the lowest price point, available ‘24 x 7’ on any channel of her choice. In the current paradigm, personalization is linked to a customer’s level of wealth since the higher the level of personalization, the higher the firm’s cost to fulfil. As a consequence, most clients do not get high quality, personalized wealth management. Ironically, these are also likely the clients who would benefit most from higher quality advice, given relatively lower levels of disposable income and investible assets. A connected strategy offers firms the potential to make the firm’s best expertise and the best advisor’s decision-making skills available to all clients via data-driven advice, directly delivered. Also, since ~50% of clients want to consolidate their financial activities in one place65, firms that demonstrate superior personalization will gain disproportionate market share. • Benefits for advisors: We describe the benefits for advisors as distinct from the wealth management firms’ that they are employed by since advisors are often independent, entrepreneurial individuals or teams within wealth managers with incentives and time horizons, not fully aligned with that of the firm or the client. A connected strategy allows advisors to spend more time on client relationship building and coaching. Vanguard’s Advisor’s Alpha that measures the advisor’s contribution finds that it is precisely such behavioral benefits that an advisor should focus on66. Morningstar’s research67 leads to similar conclusions, suggesting that “behavioral coaching is the single most impactful thing an advisor can do, adding, on average, 150 basis points” and that coaching impacts outcomes for clients more so than “maximizing returns and asset allocation” 65 2021 EY Global Wealth Research Report 66 “The evolution of Vanguard Advisor’s Alpha®: From portfolios to people”, Vanguard Research, 2018 67 “The Value of Advice What Investors Think, What Advisors Think, and How Everyone Can Get on the Same Page”, Morn- ingstar, 2016