Summer officially began earlier this week, and if the current state of airports is any indication, people are ready for a summer vacation after two years of cancelled plans.
Not everyone in the adviser fintech world is heading for the beach. This week, we looked into InvestmentNews’ latest research into adviser technology to find that many advisers, especially among independent RIAs, are still struggling to get the pieces of their tech stack to successfully integrate.
Meanwhile, the Securities and Exchange Commission proposed new roles to crack down on so-called gamification techniques that have gotten online brokerage apps like Robinhood in hot water. The rules could mean sweeping changes in the way many fintech companies build their client-facing apps.
Here is the rest of the week’s fintech stories:
A group of nine well-known names in the adviser fintech industry have funded a seed round in Bento Engine, a fintech startup that claims it can help advisers better serve clients, deepen relationships and convert more prospects. Using API integrations with CRMs, Bento scans for opportunities to engage with a client, then suggests relevant client-facing content and communication resources. Some of the names in the investment group include Marty Bicknell, CEO and president of Mariner Wealth Advisors; Shannon Eusey, CEO and co-founder of Beacon Pointe Advisors; and Doug Fritz, president and founder of F2 Strategy.
Bento is part of a growing field of Next Best Action fintechs for advisers, which can analyze a book of business and recommend activities that will most resonate with clients or prospects. These are exciting technologies, but the challenge is around the data. To be effective, these technologies require consistent, standardized data for clients — something that still challenges advisers as they put information into a CRM.
Compliance and cybersecurity fintech RIA in a Box launched a new continuing education program for investment adviser representatives that includes training on compliance best practices, investment products and ethics. The program was created in response to the North American Securities Administrator Association’s rule requiring IARs in nine states to complete continuing education requirements.
After NASAA passed the CE rule in 2020, advisers told InvestmentNews they welcomed the new requirement, but that doesn’t mean it's convenient. It’s good to see a compliance fintech getting proactive in developing new ways to help advisers keep up.
Fee-only financial advisers using the Wealthramp network to match with clients will now have access to billing contract technology from Smart Kx. The software automates fee calculations to ensure they are properly documented and aligned with disclosures. Wealthramp also plans to use the technology to bill advisers who convert referrals from Wealthramp into client relationships.
Automated billing is becoming a more popular technology for advisers. Not only can it help advisers expand how they charge beyond the traditional AUM model, but it can also reduce compliance risk. The SEC has made fees a focus of examinations, most recently saying that it will look more closely at how advisers charge clients invested in model portfolios.
LeafHouse Financial Services launched a new technology, investGrade, that it says will improve the flow of information in the retirement plan industry. Investment managers can explore more than 100,000 unique investments and use filers and comparisons to find the best solution across record keepers. Advisers will be able to access the product this fall.
LeafHouse says it built investGrade with more than a decade of research and technology experience working with advisers, record keepers, third-party administrators and DCIO firms to create an interactive ecosystem of products. Hopefully this can make it easier for everyday Americans to find good, cost-effective investment products for their retirement plans.
Financial advisers can use Income Lab’s new Life Hub to integrate retirement income plans and distribution strategies into a single location and give clients a one-page visualization of their financial lives. Income Lab’s software monitors retirement plans monthly to identify if modifications are needed, helping advisers adjust plans to fit evolving economic and market conditions.
Building off the previous story — any innovation that makes retirement planning easier is welcomed and immensely needed.
Medicare scam, pandemic benefit theft, offshore tax evasion — federal prosecutors are casting a wide net.
Report finds that pension income acts as a financial lifeline for retirees facing late-life shocks and raises urgent questions about the DC-only future.
Nine-month electronic trading freeze and share lending program at the center of dismissed claim.
Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.
With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
