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Morgan Stanley Reveals New Plan to Move Clients To Goals-Based Advice

June 14, 2018

Wirehouse Morgan Stanley wants to help its advisors steer clients toward conversations about their overall financial goals rather than investment performance, and it’s rolled out several technology products to help them do that, InvestmentNews writes.

At a demonstration earlier this week Morgan Stanley showed how its new goals planning system, or GPS, lets advisors synchronize assets held at the wirehouse with those held at other institutions, according to the publication. This account aggregation technology was developed by Envestnet Yodlee, InvestmentNews writes. Morgan Stanley advisors can also keep tabs on risk in held-away assets as a result of integration with BlackRock’s Aladdin platform, according to the publication.

The company avoided getting into specifics about how many of its clients aggregate their accounts, but Andy Saperstein, co-head of Morgan Stanley Wealth Management, said the use of the platform has exceeded the firm’s expectations, according to the publication. He also said clients have been receptive to providing Morgan Stanley with information on outside accounts now that it’s possible to “quantify the benefit” and demonstrate that it’s in their best interest, InvestmentNews writes.

Morgan Stanley also showed off its artificial intelligence technology, Next Best Action, and its direct-to-consumer robo-advisor, according to the publication.

The firm didn’t get into hard data on the use of the robo, but Naureen Hassan, chief digital officer of Morgan Stanley Wealth Management, said it’s meeting internal goals, InvestmentNews writes.

Morgan Stanley is integrating all its new tools gradually but expects all of its advisors to be able to use them by the end of the year, according to the publication.

(iStock Photos)

Morgan Stanley has recently been touting its new technology as the solution to many conundrums within wealth management. Last month it claimed that its Aladdin implementation would help it win more business from its competitors; being able to show clients where their assets are underperforming could help the wirehouse’s advisors convince clients to move assets onto Morgan Stanley’s platform.

By Alex Padalka
  • To read the InvestmentNews article cited in this story, click here.