Coutt’s Thinks Facebook Might Displace Traditional FAs
Thanks to the attitudes of millennials and the rise of robo-advisors, social media platforms such as Facebook could one day compete in the financial advice space, according to one U.K. financial executive cited by the FT Adviser.
While younger generations tend to have trust issues regarding traditional wealth management, millennials do trust social media platforms, according to Stuart Newey, managing director and head of banking at London-based Coutts, a private bank with notable clients such as the British royal family. Such trust could help Facebook and other social media firms move in on traditional financial advisors, Newey said at a recent conference in London, according to FT Adviser. And Facebook has already rolled out a feature letting its users make payments, so financial advice could be the platform’s next foray, Newey said, according to the paper. Meanwhile, millennials will have a bigger stake in the advice market as they grow older and wealthier, according to Coutts.
But not everyone agrees. David Bellamy, chief executive of U.K.-based wealth management firm St. James Place, tells the paper he doubts millennials trust Facebook enough for the social media giant to gain any traction in the financial advice space.
And Jeremy Fawcett, head of U.K.-based financial research firm Platforum, tells FT Adviser robo-advisors that partner with traditional wealth management firms are likely to survive, while the so-called “disruptors” will eventually fade away.