Digital innovation is alive and well at T3 2023

When the Technology Tools for Today conference returned in 2022 after a two-year Covid-19 induced hiatus, it was many attendees’ first chance to interact in person with friends, partners and colleagues in the advisor fintech world after lockdown orders lifted. People were understandably ready to let loose. 

The 2023 edition of T3, which took place this week in Tampa, Florida, brought a much different, yet no less exciting energy. The exposition hall teemed with newly launched companies and fresh faces making their first appearance, proving that digital innovation is alive and well in the wealth management industry.

Several longtime attendees (who asked me not to quote them directly because they were enjoying AdvisorEngine’s whiskey tasting session) mentioned being blown away by the sheer number of companies that launched during or after the pandemic. One advisor said it was almost overwhelming, but ultimately a thrill to see a vibrant fintech scene despite the current difficult economic climate for startups.

A significant presence was that of smaller custodians. Fidelity Institutional and Schwab Advisor Services of course were both in attendance and featured on multiple panels, but the Gainesville, Florida-based TradePMR’s logo was unmissable, including its ads targeting any advisors feeling worried about their custodian’s merger. I wonder what that could have been referencing?

Perhaps the biggest news to come out of the conference was that Altruist, the fintech startup that earlier in March left Apex Fintech Solutions to launch its own custody and clearing business, acquired Shareholder Services Group, a deal that added 1,600 registered investment advisors to Altruist’s platform.

Among the many new startups that filled the expo hall, several were offering products unlike what already exists on the market. Rather than showing they’d made a better mousetrap to convince advisors to leave the client relationship management, financial planning or portfolio management software they already use, some were tackling areas where many advisors still haven’t embraced technology.

As I covered Tuesday, companies like Wealth.com and FP Alpha were showing off digital tools for estate planning, an area where only 15.84% of advisors are using technology, according the latest survey from T3 and Inside Information.

There was also Hubly, a process management fintech that launched in 2020 and was using its second T3 appearance to launch Partner Workflows, a database for TAMPs, custodians, broker-dealers and advisor networks to share best practices with advisors. Organizations like XY Planning Network, fpPathfinder, Policygenius and MaxMyInterest have joined to share specially designed workflows that advisors can implement for client service, money movement, estate planning, life insurance, health care planning or tax operations.

To address the ongoing lack of adoption of cybersecurity tools among financial advisors, compliance technology firm Buckler announced the launch of OpenVRM, a single digital environment that fintech vendors can use share security and compliance documents. The idea is make it simple, easy and free for advisors to request due diligence information on any fintech vendor.

It wasn’t just new names; some well-known industry players turned up to announce new products. MoneyGuide founder Bob Curtis shared a vision to for a new type of “lifestyle planning” software. Mark Hurley, founder of Fiduciary Network and now CEO of cybersecurity company Digital Privacy & Protection, presented a white paper that made the case for why financial advisors should provide cybersecurity as a service to clients (an idea I pitched in an On Technology column back in 2019).

While T3 has been criticized for having an audience that includes more fintech vendors than actual advisors, attendees this year seemed to embrace that aspect and lean in. Startup entrepreneurs shared with me the thrill of meeting the most successful big-name fintech brands, while executives at the big-name companies excitedly talked about the chance to meet emerging new companies who could be future partners (or even acquisitions).

To be clear, there were plenty of advisors. T3’s organizers said about half of the 927 attendees were from vendors, while the other consisted of advisors, consultants, industry leaders and media. That feels accurate. No doubt plenty of deals were made, but taking the pressure off fintech companies to meet sales expectations allowed them to focus on collaborating with peers and competitors, sharing product roadmaps and discussing integration possibilities.

Instead of an “advisor’s fintech” conference, T3 2023 was a true “fintech for advisors” conference — a subtle but hugely meaningful difference.

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