This Week on The Fuse Show, Natalie and Brian talk with John Euart, Associate Partner at McKinsey & Company.

Key Takeaways

• [04:11] - John’s professional background and what led him to McKinsey and to specialize in industry trends?
• [07:09] - As an industry, we have talked extensively about the great generational wealth transfer and also succession planning for the advisors planning to retire by 2035. Considering this, why are we seeing a reluctance among advisors to take action with the younger generation and with their own retirement?
• [12:46] - Does John think that advice is becoming more scalable as more private equity comes into the industry?
• [13:22] - Does John think that the generational wealth transfer is more of an industry game changer or just a current buzzword or focal point?
• [15:28] - How does John think AI use will evolve within the RIA space going forward?
• [21:25] - Since AI is such a rapidly evolving feed, where should advisory firms look to invest within the AI space to help them grow down the road?
• [22:27] - Everyone’s take on whether AI is an industry game changer or just a buzzword.
• [24:53] - How important is it for a client to have a “one stop shop” experience?
• [27:23] - Is there a certain section of the financial services industry that is doing a particularly good job of using “coopetition” to their benefit?
• [31:23] - Is hyper personalization something we should be investing in as an industry in John’s opinion?
• [34:05] - Is the industry doing a good job of building and distributing the tools that advisors need for this type of personalization?
• [39:10] - Does John think we are in a bubble with private equity or does he think that its growth is sustainable?
• [42:15] - Is it potentially beneficial for some investors to have less liquid investments?
• [47:22] - Does John think that the benchmarking against other advisors is really critical?
• [50:26] - Is benchmarking a buzzword or a game changer in everyone’s opinion?

Quotes

[08:47] - "Another thing that I’d like to get your thoughts on as well, is that I do think there is a broader consumer preference shift that’s happening. I think it’s being influenced by the younger generations. Younger generations want experience and they are more focused on life goals, as opposed to…growing that nest egg as big as possible, and I think we are starting to see that actually impact their parents and grandparents…I’m seeing more and more older generations start to trickle that wealth transfer and actually…[they often want to] see the impact of that wealth transfer before they pass on." ~ John Euart

[23:15] - "I do believe that you are both right. [Adopting AI] is going to require us, whether you’re an RIA, a consultant, a tech leader or a CEO, to think about work fundamentally differently and to think about our data fundamentally differently…I’ve talked about this many times…I think that Financial Services biggest limitation is actually a data problem. " ~ Natalie Wolfsen

Links

• John Euart on LinkedIn
• McKinsey & Company

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