Good luck finding a client or financial advisor under the age of 40 who feels comfortable with a wealth management firm that does not conduct significant business through apps millennials can download on their smartphone. Thus the need for banks, RIAs and independent broker-dealers to supply this digital functionality in a cost-effective and compliant manner. All the better if the data gathered enables the firm to glean greater insights and boost profits.
Our new monthly Wealthtech Roundup explores interesting developments in the space, and interviews our “Wealthtech Leader of the Month” about their firm’s latest contribution. For our inaugural column, we speak with Drew DiMarino, Chief Growth Officer at Riskalyze, about its new Ultimate platform for compliance analytics, centralized administration, client engagement and portfolio alignment.
Other entries this month include Orion partnering with Apex on automated account opening for advisors and clients, Truist Wealth launching robo-advisor and hybrid investment platforms, SEI partnering with Snowflake on a data cloud for wealth managers and technology-based wealth management startup Farther raising $15 million in its recent Series A round of venture capital.
1. Riskalyze Combines Two of Its Offerings Into ‘Ultimate’ Firmwide Analytics Platform
Riskalyze has combined access to its Riskalyze Command Center tool for integrated compliance analytics and centralized administration, with its Riskalyze Elite tool for client engagement and portfolio alignment, launching Riskalyze Ultimate for RIAs and IBDs.
Ultimate – which Riskalyze built in response to feedback from CEOs, CCOs and other wealth management leaders whose teams already use the company’s other platforms but wanted a more streamlined solution – aims to provide RIAs and IBDs with a consistent experience across every account, according to the press release.
At the firm-level, RIAs and IBDs can determine which accounts hold inappropriate assets, have unacceptable concentration levels, or have deviated too far from their targets. Advisors can access a marketing kit, security analysis, retirement planning timelines and other features designed for interacting with clients and prospects.
And now for our quick Q&A with Wealthtech Leader of the Month Drew DiMarino, Chief Growth Officer at Riskalyze.
WSR: There’s so much tech out there for wealth management firms. How does Ultimate help Riskalyze stand out?
DiMarino: We built this technology because our scaling RIA and enterprise broker-dealer clients said, “We have thousands of accounts to monitor, and we’re only getting to hundreds every quarter – surely your deep risk methodology can help us sift through the haystack to find the right ones to focus on.” Riskalyze Ultimate really drives a new level of coordination and cooperation between front-line advisors and back-office staff, making it easy for them to zero in on the client accounts that need stronger documentation or better alignment with target. That’s something we’re uniquely able to deliver to the marketplace like nobody else.
WSR: How can wealth management leaders determine ahead of time which tech solutions will really be value-add?
DiMarino: The beauty of SaaS software is that you can make low-risk bets. You used to spend five to six times the annual cost buying software and hoping it would work. Now a firm can spend a fraction of that to pilot a solution like Ultimate, and we usually invest 18 to 24 months of what they spend in the first six months helping them get successful with the solution, so we are vested in their long-term success. That’s a win-win partnership that works.
WSR: What’s next in the product pipeline for Riskalyze, and why?
DiMarino: You can count on us to continue to innovate at the intersection of how firms and advisors engage with clients. Someone once said we’re the only wealthtech solution that makes the firm, the advisor, AND the client more successful all at once. We love that, and we’re doubling down on making that three times, four times, five times as true in the future.
To learn more, view the press release here.
Orion Advisor Services and Apex Advisor Solutions, a subsidiary of Apex Fintech Solutions, have joined forces on a new automated account opening tool for the independent channel. The digital integration enables advisors on Orion’s platform – or their clients – to create a client account, fund it and access a tailored financial plan, all in minutes, according to the press release.
The Automated Account Solution, as it’s called, is designed to help independent advisors compete with rivals at large institutions whose scale makes it easy to serve many small accounts. It strives to provide an intuitive back end for advisors and a user-friendly self-guided tour for clients on the front end.
Advisors can use Apex’s digital-first custody integration to do it themselves, or send clients a link to an online portal that lets the client handle the process, which includes online document management. Any investment models on Orion also are available to advisors and clients through the Automated Account Solution.
Truist Wealth, a unit of Truist Financial Corporation which itself is the brand that emerged from the 2019 merger of BB&T and SunTrust, has launched the Truist Invest robo-advisor and the Truist Invest Pro hybrid platform that tacks on a team of financial advisors.
The robo-advisor platform allows clients to identify their goals and risk tolerance before the digital automation creates portfolio recommendations. In addition to daily portfolio analysis, Truist Invest can conduct rebalancing and tax-loss harvesting. Clients can change their preferences at will to match their financial circumstances, according to the press release.
Truist Invest Pro offers the same features along with “unlimited access” to human wealth management experts who can provide clients with further investment advice. Both platforms have an account minimum of $5,000, with the robo-advisor charging 0.50% and the hybrid solution charging 0.85% annual fees based on assets under management.
Wealth management firms using the end-to-end advisor-and-client solution SEI Wealth Platform will soon be able to access SEI Data Cloud, a new advanced analytics tool, thanks to the investment management and fintech provider’s partnership with Snowflake.
SEI Data Cloud offers on-demand access to real-time data, business event-based alerts and notifications, ease of information consumption and Analytics-as-a-Service (AaaS) to wealth management firms, according to the press release. The goal is to provide advisors with customized, scalable reporting capabilities.
Snowflake’s other partnerships include the global bank BNY Mellon and the Aladdin portfolio management software by BlackRock. SEI manages, advises or administers approximately $1.3 trillion in assets. Its SEI Wealth Platform serves private banks, independent trust companies and insurance companies active in wealth management.
Farther, a technology-based wealth management startup founded in 2019, has raised $15 million in its recent Series A round of venture capital funding with backing from Bessemer Venture Partners, MassMutual Ventures and Khosla Ventures. The fintech startup provides data-driven digital tools for its W2-employee advisors and their clients.
Co-founded by MIT graduates Taylor Matthews, CEO, and Brad Genser, CTO, the company has over $250 million in assets under management through Farther Finance Advisors, its RIA. Pre-existing investors include Moneta Venture Capital, Context Ventures and Cota Capital. This round puts its total amount raised to $22 million, according to the press release.
Technology for Farther’s advisors includes marketing, investments encompassing traditional assets as well as alts and crypto, compliance and risk management as well as custody and clearing capabilities. Client-facing technology includes online platforms for holistic financial planning, life insurance as well as tax-efficient investing in private equity and high-end artwork.
To learn more, view the press release here.
Chris Latham, Deputy Managing Editor at Wealth Solutions Report, can be reached at email@example.com