Ideally, the new brand will emerge as a lovable one. Anyone can turn up the marketing volume if they have money, but FE/E can use its shared DNA of consumer advocacy and connect to consumers who generally distrust our industry. Ric has said his intention is to focus on education, and I hope he remains visible in marketing. It’s ironic that in a business where we deeply touch so many lives, most large institutions are faceless. Having a face and a brand personality that is a champion for everyday investors would be great.
What About Everybody Else?
The muscle that the new Financial Engines/Edelman business will have means they can really shake things up. The pairing of a 401(k) business with a national fiduciary advisory platform is an advantage in the regulatory environment. Fidelity, Schwab and Vanguard now have a new and credible competitor for retail market share. One big advantage that FE/E will have is focus and alignment, while those older players have vast channel conflicts and legacy platforms that slow them down. Smaller RIAs who focus on high-net-worth investors may not notice much change, but for the large RIAs competing to be national leaders, the success hurdle just got much higher.
But size is not the most important part of this story. What is really striking to me is that this merger could solve the big challenges facing our industry, not to mention add a guiding light that is good for consumers. It could reach more investors. It could deliver the great experiences they want in the digital age. It could make financial advice cost effective for them, profitable for advisors.
It could help Americans feel better about life and money.
This is a brand I could love.
Gail Graham is CEO of Graham Strategy, dedicated to helping wealth managers build brands people love. As the former CMO of United Capital, she created an industry-leading marketing platform. Previously, she spent a decade at Fidelity Investments.