Nest Wealth Asset Management Inc.
(11 pages of text)
Nest Wealth Asset Management Inc. (Nest) was a new Canadian robo-adviser based in Toronto. The company competed not only against large incumbents such as Canadian banks but also against other financial technology start-ups. In April 2015, Nest's main competitor had just aligned with a significant partner that had abundant financial resources and broad market access. Nest's chief executive officer needed to consider the best option for the company's future: Should he maintain the current business-to-consumer model by maintaining a focus on scaling and expanding Nest's consumer base, or should he explore a business-to-business model by leveraging Nest's technological capability and offering technology to human advisers?
The case explores digital disruption in the context of wealth management and robo-advice and can be used to fulfill several diverse learning objectives. At its core is a class on fundamental strategy for new firms competing against large incumbents. After working through the case and assignment questions, students will be able to
- explain digital disruption in the modern era, specifically in terms of financial advice;
- discuss the value created by human financial advisers; and
- determine where and how the value created by human financial advisers may be enhanced or threatened by digital advice.
Finance and Insurance
Canada, Small, 2015
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download