“Thomas Moore of Betterment for Advisors Shares Insights on AI, Automation, and the Future of Financial Advisors”

In the world of registered investment advisors, the rise of artificial intelligence has sparked concerns and uncertainties among many professionals. However, Thomas Moore, the director of Betterment for Advisors, offers a unique perspective on the role of automation in the financial advisory space.

With a background that includes lead sales roles at Affiliated Managers Group, SEI, and the Vanguard Group, Moore brings a wealth of experience to his current position. In a recent interview ahead of the CNBC FA Summit, Moore shared his insights on the evolving landscape of financial advising and the impact of automation on traditional practices.

Moore addresses the initial fears that robo-advisors would disrupt the industry back in 2012, noting that the coexistence of automated tools and human advisors has actually led to growth in the financial advisory space. He emphasizes that automation serves a different client base, allowing advisors to leverage technology to enhance their services rather than replace them.

When asked about the growth trends in the advisor business, Moore highlights the willingness of advisors to embrace new technology as a key indicator of success. While younger advisors may be early adopters, Moore notes that advisors of all ages are seeking more efficient ways to manage their practices and engage with clients.

One significant topic of discussion is the “great wealth transfer” and how advisors can attract next-gen clients who will inherit substantial wealth. Moore stresses the importance of building relationships with both current clients and their heirs, adapting to the changing needs and preferences of different demographics.

Looking ahead, Moore points to the shifting landscape of RIA custodians and the opportunities created by recent mergers in the industry. He also highlights the retirement-to-wealth movement, where wealth advisors are exploring new revenue streams by targeting small business owners and converting retirement plan participants into wealth clients.

Overall, Moore’s insights shed light on the evolving role of automation in financial advising and the opportunities it presents for advisors to enhance their practices. As the industry continues to evolve, advisors who embrace new technologies and adapt to changing client needs will be well-positioned for success in the future.