As we continue to sweat our way through the dog days of summer, its nice to see that adviser fintech remains somewhat warm even as the broader technology landscape has cooled off.
Tech startup funding dropped in the spring as venture capitalists regroup to challenging market conditions. However, two fintechs focused on the adviser space were each able to land $15 million in fresh funding -- surely a positive sign for the health of the sector.
Modern Life and Father weren’t the only companies making waves, so read on for a roundup of the rest of this week’s fintech headlines.
Nearly 900 students participated in the Envestnet Institute on Campus program during the spring of 2022, a record number for the initiative that aims to bring more young adults into the wealth management profession. Envestnet also added Franklin Templeton as another sponsor of the program to add courses on sustainable investing, alternative investments and ETFs.
What’s impressive about Envesnet’s program is the measurable impact it has had on improving diversity in the industry -- something much easier to talk about than achieve. Envestnet said 25% of participants in the latest session are first-generation college and university students, 40% are students of color and 44% are women. EIOC is available at 49 schools, include four historically Black colleges and universities, 1,907 of the programs total graduates have been people of color.
Compliance and cybersecurity software provider RIA in a Box was selected as a compliance partner by social media network LinkedIn. The partnership brings LinkedIn to RIA in a Box’s MyRIACompliance Communications Archiving and Review product -- which already includes Facebook, Instagram and Twitter -- to let firms store, review and filter digital communications in a single place. LinkedIn’s business development management Moza Anthony said RIA in a Box is a “perfect fit” for the compliance programs because it “is trusted in the space to confidently manage investment advisers' regulatory compliance needs, all while allowing for industry compliant use of LinkedIn's free and paid products.”
With the Securities and Exchange Commission’s November 4 deadline to comply with the updated Investment Advisers Act draws near, firms are weighing how they want to start using testimonials in advertising. Social media is going to be a big part of the calculus for many firms, especially the more business-oriented LinkedIn. Using automation software like RIA in a Box to ensure all bases are covered is going to be key for advisers.
Yieldstreet, a direct-to-consumer online brokerage focused on private markets, closed a warehouse facility that provides access to up to $400 million from Monroe Capital LLC. Milind Mehere, Yieldstreet’s CEO, said the financing is the largest of its kind for any alternative investment platform in the industry and provides capital to pursue new opportunities across the alternatives asset class. The facility can support real estate, private credit, private equity and art, as well as help the tech startup work more closely with asset managers and sponsors.
There’s not much more I can say about alts than I already covered in my latest cover story for InvestmentNews, but these things continue to feel like a double edged sword. Is it a noble cause to “democratize” access to complex, possibly risky investments that previously were only available to the super-rich? Probably. But there are also dangers for many retail investors who may be better suited with a less-sexy investment products, and I just hope tech companies like Yieldstreet keep this in mind as they continue to grow.
Financial advisers using InvestCloud will be able to access fixed iindex annuities on InvestCloud’s technology platform thanks to a new partnership with Eagle Life Insurance Company.
Just as is happening the alts space, a lot of work is going into technology to better connect financial advisers with life insurance, which has seen demand boom in recent years. While not every adviser agrees using annuities in client portfolios, the hope is that better technology can help better evaluate products that would be a good fit.
Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing
Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.
New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.
Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.
How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
