The adviser world returned from the July 4 holiday ready to spend some money on technology.
First Trust became the latest asset management firm to buy a direct indexing fintech with its acquisition of Veriti. It’s going to be interesting to see how these firms differentiate their offering and convince advisers that their direct indexing product is superior to the dozen others on the market.
And as XY Planning Network co-founder Michael Kitces put it on Twitter, the trend demonstrates how difficult it is to disrupt the asset management business. Truly innovative technology is more likely to get acquired before it can seriously displace the incumbents.
The other major deal of the week was Envestnet’s purchase of fee and billing fintech Redi2. The deal expand Envestnet’s ability to serve asset management firms, and I broke down why advisers are increasingly turning to automated billing fintech. It’s also interesting to see Envestnet — which has had a turbulent 2022 with rumors swirling about a sale, some office closures and the relocation of its headquarters, a departing president and a corporate restructuring — opening up the wallet for a fintech company.
Learn what is fintech here.
Read on for the rest of the week’s fintech headlines.
Independent advisers using SEI for technology and investment management will soon have access to Holistiplan, a tax planning software that automates the process of reviewing a client’s tax returns. With clients expecting advisers to provide more financial services, tech like Holistiplan can help advisers add tax planning to their repertoire.
The partnership with SEI, which has 7,500 advisers on its network, has the potential to be a big win for the rapidly growing Holistiplan. The firm claims it has added 10,000 users since launching in 2019 and already has a significant market share lead over its competitors, according to the 2022 T3 Inside Information adviser technology survey.
Independent Advisor Alliance, a hybrid RIA, is partnering with a Cornelius, North Carolina-based computer repair service called We Handle Tech to launch a new technology firm dedicated to supporting financial advisers. The aptly named We Handle Tech: 4 Advisors will provide IT solutions and software, help mitigate cybersecurity risks and ensure firms are compliant with regulators.
It’s not just a clever name, what’s interesting about this initiative is the idea of helping advisers with both hardware and software needs, as well as setup and training. Services like this could also help deal with the integration problem facing many advisers.
Zocks has inked an exclusive partnership with mega-RIA Hightower, while Jump becomes the choice AI operating system for Equitable Advisors' field force.
The agency's proposal to rescind the contentious 2024 Biden-era mandate opens up a 60-day public comment period.
The Carmel, Indiana RIA grew nearly 150% in assets since severing ties with its first backer following a FINRA dispute.
Meanwhile, Raymond James' employee arm adds a defector from D.A. Davidson, and South Carolina-based RIA Ballast Rock Private Wealth recruits a new advisor.
A FINRA arbitration panel sided with a former wealth manager fired over a $642 deli platter and a disputed client event.
As $84 trillion prepares to change hands, advisors who treat estate planning as peripheral are quietly building a sieve, not a book.
In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.
