Ballooning bonuses, higher compliance costs and growing tech investments are squeezing margins to the limit. It's time to revisit the unit economics of each relationship to ensure everyone is on a sound financial footing.
The profitability of many broker-dealers is defined by their ability to deliver value to the advisors with whom they affiliate and charge a fair price for those services. Today, many broker-dealers are experiencing low profitability and a high volatility in their earnings—an economic model whose future is unclear. The Broker-Dealer of the Future will break this vicious cycle, establishing a sound economic model that regains control of the grid and creates profitable value-added services.
Stunning Transformation Three explores:
• Pricing the Risk and Return on Equity
• Managing the Grid
• The Importance of Non-Grid Revenues