45 connected strategy for asian wealth management ^Top 4. Connection Architectures O nce a wealth manager has defined what type of Connected Customer Experience(s) to build, the next design question to address concerns the firm’s target connection architecture. This addresses what connections a wealth manager chooses to make with or facilitate between various industry ecosystem participants such as customers, suppliers, app developers, wealth tech firms and data providers. Let us first elaborate on the concept of a connection architecture using the current industry structure. The use of distributors by asset managers to distribute investment products such as mutual funds has historically been necessary in Asia due to geographic and regulatory fragmentation. Distribution intermediaries function as wealth retailers, aggregating demand via their client bases and leveraging their distribution networks of branches and people. As such, their two main connections are with the consumer (via advisors who are firm employees) and with asset managers (suppliers). The wealth man- agers evaluate products, curate them, and distribute advice and products to customers. For these functions, they charge mainly transactional distribution fees and so-called “trailer” fees, since they act as the agent of the manufacturer and not of the client. In the section below, we now lay out five new connection architectures: Connected Re- tailer, Connected Producer, Connected Market Maker, Crowd Orchestrator and Peer-to-Peer network Orchestrator. In each case we describe the archetype, provide case examples and share our perspective on how each archetype may evolve. connected retailers Archetype description: Connected wealth retailers create direct, digital connections at the firm level with customers and with multiple producers. Connected retailers, like their analog counterparts, curate products and connect to asset managers but the key differ- ence is in the direct connection created with clients as opposed to relying on a network of analog, ‘disconnected’ relationships between the advisors and clients. Case examples • Roboadvisors. In Asian markets such Taiwan, Hong Kong and China, standalone players and incumbents have launched simple roboadvisors using a connected retailer strategy. Clients answer a few questions, provide a simple overview of their goals and invest in curated portfolios with ETF or mutual funds from vari- ous providers with embedded execution and custody services. There are several