Oisin Breen

Sallie’s professional moves have been contrarian and correct. Her pivot is brave but will be more difficult.

Ellevest is a women's lifestyle and affinity brand, masquerading as a subscale RIA.  The truth is that there's nothing about women or other affinity groups/labels that changes or impacts how their wealth management products/services/advice in any meaningful way, and that isn't already fully provided through other firms and FAs, both men and women.  The "by women for women" is a significant limiter in an industry where there isn't an actual value proposition to that demographic beyond marketing blather.

Sallie Krawcheck has had a phenomenal career and track record as a founder. The fact that she has pivoted her business model reflects rationality and research. Those who have continued to bet against her only reinforce why she attracts big female allies and partners. You go, girl!

Enigmatic Sallie Krawcheck finds success evolving her RIA to a more conventional high-net-worth business model, then proclaims her 'contrarian' bonafides

Ellevest

Sallie Krawcheck

Stripped down to its essentials, financial advice is a fairly straightforward proposition. Done well, a highly ethical individual stewards the assets and actions of an investor in a personal and professional interchange.
 
But now a vibrant new class of entrepreneurs is staking their fates and their fortunes on the premise that financial advice can be delivered in a better, cheaper, easier, more ethical, more transparent manner and, as a bonus, in a way more devoid of human annoyance on both ends of the transaction.
 
Cue the robo-advisors, arguably a callous misnomer for automated asset management. 
 
The prototypical robo-advisory entrepreneur has more brands on his or her resume than NASCAR. The bona fides of these industry upstarts often include Ivy-level colleges and MBA programs at Harvard or Stanford. They are often flush with IPO dollars realized at concerns like LinkedIn, Facebook, eBay, Amazon  and Microsoft. 
 
Robo-folk believe that technology is not an enabler of advice but rather, if engineered correctly, advice itself in digital form. 
 
And, they believe the best solutions originate in Silicon Valley or academia, not Wall Street. Robo-entrepreneurs are white-boarding the whole business model, culture and technology from scratch in the conviction that little can be learned from a legacy advice system still rooted in an investment banking culture acting under the core premise that if stockbrokers get rich some of the good effects will trickle down to clients – with the clients none the wiser. 
 
Robo-advisors are a scintillating topic for students of the advice game as they grow by hundreds of millions in assets every month, constantly evolve their business models and receive cash infusions from ever-larger swaths of venture capitals.
 
Throw in the fact that robo-advisors have yet to see a dime in profits -- and won’t in the foreseeable future -- and you have real intrigue. 
 
RIABiz has avidly covered the fast-evolving robo-advice phenomenon and will continue to do so. We present the growing body of articles here.

Robo-Advisors

<p>The RIA business is many good things but integrated from a gender standpoint is not one of them. This is not so great. Women are the majority of humanity and they have an asset-building strategy that can't be beat. Women outlive their beer-and-steak mates and end up with big estates. But today's women have too another strategy -- pursuing wealth in the workplace. Yet when they go to find fellow women to talk all this through with, they don't readily find them.</p> 

<p>Companies big and small have for decades fallen over themselves to say that they have women's initiatives but I can't think of one that has amounted to much. But there are stories-- dozens or hundreds -- of them about women exerting their influence on this business and we are starting to collect them. It's a starting place -- documenting the ground being covered by women in the form of engaging tales graphically depicted by the physiognomy of the fairer sex.</p>

Women of Wealth Management

The former chief of Merrill Lynch brokers uses analyst's choice of Bank of America shares as example of also-ran thinking  but her maverick approach with Ellevest may be declining.

Enigmatic Sallie Krawcheck finds success evolving her RIA to a more conventional high-net-worth business model, then proclaims her 'contrarian' bonafides

Jeff Spears

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Gerri Leder

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Enigmatic Sallie Krawcheck finds success evolving her RIA to a more conventional high-net-worth business model, then proclaims her 'contrarian' bonafides

Jeff Spears

RB

Gerri Leder

RIABiz Directory

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