Data aggregation firm Quovo is adding new widgets to help large advisory firms at broker-dealers better utilize client account data.
The widgets let firms add personal finance management tools like live balance sheets, budgeting, and progress towards goals to their existing client portals.
Quovo CEO and co-founder Lowell Putnam said the modules remove the heavy lifting required to design the technology in-house, but let firms retain more control and customization than they would buying from a vendor. He added that because the tools are built on Quovo's data platform, they are more easily integrated with the firm's existing technology and can be released faster than third-party solutions.
The widgets can be implemented as a full package or purchased individually. Niko Karvounis, Quovo's chief product officer and co-founder, said they are designed for both web-based client portals on either a desktop or mobile device, and can also be added to a firm's mobile app.
"Ultimately, our goal is to not only broaden the accessibility of our aggregation but also to accelerate digital roadmaps across the industry," Mr. Karvounis said.
For Quovo, the new tools help make the data service more valuable to the 10,000 advisers who access it. Mr. Putnam said that the company wants to go beyond displaying and managing data to providing context that is useful for advisers and their clients.
Yodlee, a competing data aggregation provider owned by Envestnet, introduced a similar product with its "finapps."
(More: Envestnet Tamarac overhauls adviser software)
"The concept of PFM modules on top of aggregated data is nothing new, but we had enough requests from enterprise customers in particular that didn't like other options out there or didn't have the technology resources to build it themselves," Mr. Putnam said.
He sees the demand among advisers for PFM apps reflecting a larger trend in the industry — the move away from traditional investment management. Even though Quovo isn't releasing modules designed specifically for
financial planning, Mr. Putnam says it's "the same energy" driving the demand for apps that track budgeting instead of returns over time.
"In order to justify fees, these are the type of tools advisers have to bring to meetings," Mr. Putnam said. "You have to show value outside of quarterly investment updates."
"Quovo's new templates PFM tools make a lot of sense," wrote Michael Kitces, director of wealth management at Pinnacle Advisory Group, in an email. "It gives firms the opportunity to more quickly deploy client-friendly PFM tools off the shelf, while focusing their resources on what to do with all that account-aggregated big data."
