Technology vendors want their adviser clients to have all the tools necessary to be heavy hitters — and they want it all done on their platforms.
Whether through integration or building the services themselves, technology companies across the industry are hoping to be advisers' one stop shop for running an efficient practice. Some vendors are loading all of their services onto one dashboard while others are partnering so that an adviser never has to leave their software.
“This is pushing advisers to focus on companies or groups of companies who will give them that experience,” said Raef Lee, managing director and head of new services and strategic partnerships at SEI Advisor Network.
SEI is one example of a turnkey asset management firm offering its advisers integrated software on its platform.
Envestnet is another, though it is also acquiring technology companies, including
financial planning software provider Finance Logix and robo-adviser Upside. Morningstar, which offers research and adviser services, just acquired
portfolio management software provider Total Rebalancing Expert.
“It used to be everyone was talking about integration, and now they're talking about how to give a great adviser experience,” Mr. Lee said.
That can be done by being able to meet all an advisers' possible needs in few clicks. Take Riskalyze, for example. The company, which started out offering risk analysis and alignment, said Tuesday that it was putting its risk, robo and compliance services
on one platform.
“There are now almost more portals than there are people,” said Greg Friedman, chief executive of Junxure during his presentation at the Technology Tools for Today conference on Tuesday.
On the sidelines of the conference, he added that the lines for technology vendors are blurring.
“Your portfolio management system is going to also either integrate or offer all these other components,” Mr. Friedman said.
Services like that keep advisers loyal, because they don't want to have multiple experiences, SEI's Mr. Lee said.
“They want to be the end all,” said David Benskin, chief executive of Wealth Access, a personal finance management platform for advisers. “They want to control advisers' workstations where they do everything through them.”
He added that it's what advisers demand.
“A lot of advisers would like everything to be integrated in one simple solution,” Mr. Benskin said.
