Fintech Bytes: Vise, CapIntel and Morningstar

Fintech companies are responding to the first bear market many have experienced. Here are the rest of the week's fintech stories.

Markets have officially entered bear market territory, and the fintech world is responding.

Aside from the pandemic-inspired volatility in 2020, this is the first major market downturn many fintech startups have encountered. As I noted earlier this week, some are laying off workers to trim costs in anticipation of going lean times.

But challenging times can also open windows of opportunity for prepared companies. Some fintechs are still bringing in investment money and expanding their workforce, while others are rolling out new features to help advisers through a bear market. The hope is that the work now will result in loyal customers when the good times return.

Here are some of the other fintech stories you may have missed this week.

VISE UPDATES TECH TO HELP ADVISERS WITH MARKET VOLATILITY

Vise, a startup providing custom indexing and automated portfolio management, has updated its software with enhanced tax management, upgraded cash management capabilities and improved capabilities allowing advisers to title portfolios factor exposure. The company says these features, especially the tax capabilities, can help advisers continue to deliver value to clients through market volatility.

Vise has an interesting product that could certainly help advisers demonstrate their investing prowess to help guide clients through what could be a prolonged bear market. Though the company has struggled to grow assets or retain executive leadership, it has secured new partnerships to help gain a foothold among advisers.

CAPINTEL RAISES $11 MILLION

The FinTech Collective has led a $11 million Series A financial round for CapIntel, a startup that provides workflow and fund analysis for financial advisers. Fengate Asset Management and LiUNA Pension Fund of Central and Eastern Canada also contributed to the fundraising. The Toronto-headquartered company plans to use the funds to hire 150 new team members and expand into the U.S. market.

While many startups across fintech are cutting back due to the current market environment, it’s nice to see some are still currently scaling up. They may have a shorter runway than companies did a few years ago, but hopefully they’ve prepared for the challenge. Also of note — CapIntel is the second international fintech this month to expand into the U.S. market, following Australian company Lumiant.

ARCUS PARTNERS SIGNS MADISON AVENUE SECURITIES AS CLIENT

Madison Avenue Securities, a independent broker-dealer and RIA with $1.8 billion in AUM, selected Arcus Partners’ Finity 360 suite of adviser technology to improve client statements and documentation and to transition document delivery from physical mailing to automated emails.

For technology companies like Arcus, landing a client like Madison Avenue is always a huge get. And Madison clearly needs to improve its workflows around documentation and disclosures. Earlier this month, the firm was fined $800,000 over deficiencies in fund share class disclosures.

INVENT EXPANDS EXECUTIVE TEAM

Craig Uhlenkott and James Byers, former chief product officer and product manager, respectively, of cryptocurrency-for-advisers startup Onramp Invest, have joined the leadership team at Invent, which provides a software development platform and data hub for wealth management firms. Prior to Onramp, Uhlenkott and Byers both spent time as managers as TD Ameritrade Institutional.

Despite securing funding in May, Onramp continues to lose talent after a round of layoffs and the departure of former CEO Tyrone Ross in March. The crypto company’s loss is Invest’s gain as it tries to help large wealth management firms solve the problem of technology integration.

HALF OF RETAIL INVESTORS WANT A SINGLE FINANCIAL PROVIDER

New research from Cerulli Associates found that 58% of investors expressed an interest in consolidating all their investible assets with a single financial institution. However, just 37% of retail investors said they currently use the same provider for cash management and investing services.

This obviously represents a huge opportunity for firms trying to build a well-integrated, all-in-one platform to provide holistic financial wellness. Banks and wirehouses are working hard to build this already, and other wealth management firms will need to implement solutions to remain competitive.

MORNINGSTAR LAUNCHES NEW INVESTMENT RESEARCH TOOL

The Chicago-based company is replacing its Morningstar Premium service with Morningstar Investor, an enhanced digital research tool for individual investors. Drawing from the tool’s universe of 21,000 stocks, 7,000 mutual funds and 3,000 ETFs, investors can get a timely information about any holding in an account they link using ByAllAccounts aggregation. The product also makes use of Morningstar’s Portfolio X-Ray to identify any overlap within a portfolio that could impact diversification.

As Cerulli’s research found, most investors want all of their financial information in a single location. Personalization is also the name of the game these days, and Morningstar’s newest tool hits on both of these trends at once.

[More: Anticipating more pain ahead, advisers stress long-term perspective]