Invesco’s acquisition of Intelliflo is an example of how fintech can help asset managers get closer to financial advisers.
We covered financial advisers’ use of Fintech and Digital in our recent report on the UK adviser market, and found that 29% use Intelliflo’s back office system as their main system.
So Invesco will have some access to insights covering a huge swath of UK financial advisers – notwithstanding the GDPR and other rules about ownership and use of data. They will know a lot more about what investments advisers’ clients are holding, buying and selling – across products, tax wrappers, strategies etc.
Invesco is also one of several asset managers to have acquired a robo adviser in recent years – the California-based JemStep, which enables automated services for financial advisers.
Its consumer-facing digital advice technology increases advisers’ ability “to reach and acquire more prospects and to reduce their cost to serve clients.” This is partly through the robo advice capability but also through “automation of the middle and back offices.” The Intelliflo deal clearly follows this thread.
So the Intelliflo purchase is part of an international adviser-centred strategy. In contrast, some other asset managers have ventured into platforms rather than the back office to extend their distribution reach.
We’re hearing a lot about vertical integration and the attraction of owning all the links in the value chain. There’s an element of that in Invesco’s strategy but there’s also a realisation that enabling, partnering and understanding advisers and their clients can put asset managers in a powerful position.