Cetera Financial Group has taken a first step in broad upgrades to the technology platform used by its 8,500 advisers and expects to give them a robo-adviser to use with clients and a portal for investors by the end of this year.
The Los Angeles-based network of independent firms is working with
Envestnet to begin making a digital advice platform available for some Cetera advisers by the end of next month.
First, though, the company on Thursday said it has launched tools for advisers to be able to use three different investment programs on the same system and to streamline workflows from investment planning to portfolio design to account opening and ongoing maintenance.
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"This is the first key release as part of the journey we're on in to completely transform our engagement model with advisers and clients as it relates to technology," said Robert Moore, chief executive of Cetera.
The robo-adviser will carry a $1,000 minimum for clients, who will be able to open accounts electronically through a link they receive from their advisers, he said.
The network of advisory firms also will unveil a client portal and adviser portal tools by the end of the year, according to Mr. Moore.
Cetera is racing against broker-dealers, as well as custodians and fintech firms to provide advisers with integrated technology that makes their businesses run more efficiently and give clients a digital experience comparable to those they're used to receiving from Netflix and Amazon.
Cetera emerged as an independent company in 2016 following a corporate restructuring of RCS Capital Corp., its parent company which filed for Chapter 11 bankruptcy. RCS Capital, or RCAP, was previously led by
REIT czar Nicholas Schorsch.
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"Cetera, before Schorsh, was a leader in technology," said Tim Welsh, president and founder of Nexus Strategy. "However that disastrous period sidelined them, so now they are in big-time catchup mode."
Additionally, the company's chief information officer
Mukesh Mehta left Cetera in March to join California fintech firm AssetMark.
That, however, is not likely to hurt the firm, as the "great progress in the adviser tech space" offers many talented technology people for the firm to take advantage of, Mr. Welsh said.
