Welcome to the September 2023 situation of the Newest Information in Monetary #AdvisorTech – the place we take a look at the massive information, bulletins, and underlying developments and developments which might be rising on this planet of expertise options for monetary advisors!
This month’s version kicks off with the information that WiserAdvisor, one of many longest-running lead technology providers within the business, has acquired IndyFin, a startup advisor score platform that had aspired to be the ‘Yelp for Advisors’ – which on the one hand offers WiserAdvisor with a possibility to leap into the enterprise of shopper evaluations and scores (which has garnered important curiosity from a number of AdvisorTech startups hoping to advertise such providers within the wake of the SEC’s new Advertising and marketing Rule permitting shopper testimonials), however then again, raises questions on how a lot demand there actually is for a standalone advisor score device, since few advisors are prone to accumulate sufficient scores from present or former shoppers to really attract new shoppers (and advisors with sufficient shoppers to get a crucial mass of evaluations possible have sufficient shoppers that they will simply depend on shopper referrals… or do not even want so as to add new shoppers anymore?).
From there, the most recent highlights additionally function numerous different fascinating advisor expertise bulletins, together with:
- Former United Capital Companions founder/CEO Joe Duran is reportedly exploring the launch of a brand new RIA 4 years after promoting his agency to Goldman Sachs, with a reported emphasis on offering lead technology alternatives for advisors on its platform – which if profitable, may present a brand new mannequin for reinforcing natural progress with out the excessive price of outsourcing to a third-party lead technology service or counting on inorganic progress by way of mergers & acquisitions.
- Onramp Make investments, the platform that aimed to resolve the challenges of cryptocurrency investing for monetary advisors, was acquired by Securitize, a platform specializing in blockchain-based tokenization of personal market investments, suggesting that advisors’ curiosity in recommending digital belongings for his or her shoppers – already restricted throughout earlier rallies within the worth of Bitcoin and different cryptocurrencies – has declined additional amid the value crash and ensuing scandals which have occurred within the year-plus since
- Wealthtender, a lead technology and advisor score service, has introduced a partnership with custodial account supplier UNest to carry its find-an-advisor expertise to UNest’s buyer base of oldsters opening funding accounts for his or her kids – which, whereas increasing Wealthtender’s footprint within the aggressive lead technology market, raises questions on how massive of a possible buyer base UNest can present (and whether or not Wealthtender will have the ability to safe any bigger enterprise partnerships that may assist it safe a spot because the “One and solely” advisor score service)
Learn the evaluation about these bulletins on this month’s column, and a dialogue of extra developments in advisor expertise, together with:
- With AI expertise proliferating within the monetary providers business, regulators are more and more involved about attainable conflicts of curiosity if the expertise might be manipulated to suggest an organization’s merchandise and options over others (regardless of being beneath a technological veneer of ‘objectivity’), as highlighted most lately by the SEC issuing proposed rules for RIAs for evaluating and eliminating conflicts of curiosity of their expertise, and Massachusetts Secretary of State William Galvin sending a request for six firms from completely different areas of the business to element their use of AI of their enterprise practices
- During the last 10–15 years, numerous AdvisorTech suppliers have gained nearly all of market share in sure core classes like monetary planning and CRM; however as the latest Kitces Analysis on AdvisorTech has discovered, a brand new crop of instruments has arisen in newer years that has garnered larger satisfaction scores than the incumbents, and have been steadily gaining market share – suggesting that the normal advisor tech stack may ultimately be upended and changed by a brand new ‘next-generation’ tech stack that displays the rising shift of advisors into deeper monetary planning and non-AUM charge fashions
And be sure to learn to the top, the place we now have offered an replace to our standard “Monetary AdvisorTech Options Map” (and in addition added the adjustments to our AdvisorTech Listing) as properly!
*And for #AdvisorTech firms who wish to submit their tech bulletins for consideration in future points, please undergo TechNews@kitces.com!