A few weeks ago, we asked how fintech companies will respond to the challenging market environment, one that most have never experienced before. Some startups have already made moves to prepare for an extended bear market, but now the crunch is coming to more established fintech brands.
Tuesday, Robinhood announced plans to eliminate nearly a quarter of its workforce — 780 people — and close down some offices just a year after the pandemic-related retail trading boom fueled Robinhood’s initial public offering. Robinhood also reduced head count by about 9% in April, bringing the total number of employees dismissed in 2022 to more than 1,000, according to Bloomberg.
Things continue to be difficult in the cryptocurrency world. Coinbase, the largest crypto exchange in the U.S., watched its value drop from $86 billion when it went public in the spring of 2021 down to $21 billion this week, according to the Wall Street Journal. However, Coinbase’s stock rebounded this week on news of a new partnership with BlackRock to offer bitcoin trading and management to institutional clients via BlackRock’s Aladdin technology.
Read on for the rest of the week’s news adviser fintech news, and please send an email or reach out to on Twitter to let me know what you think about Fintech Bytes.
Content management technology Laserfiche has a new program that will automatically create a digital transcription of audio and video content that advisers upload to it. Advisers can then perform a keyword search on the content, helping to find specific content for marketing or compliance purposes, as well as help any deaf or hearing-impaired employees.
Functionality like this makes sense as advisers increasingly rely on video for client meetings and digital marketing. As someone who often deals with recorded interviews, I can be the first to say that an automated transcription service can be a lifesaver — if it works well. These programs can sometimes be more trouble than they are worth, but if Laserfiche’s software does what it promises, maybe it will consider making a version for reporters.
The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.
IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.
Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.
A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.
As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.
Wellington explores how multi strategy hedge funds may enhance diversification
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
