In this edition of the Wealthtech Roundup, we speak with our newest Wealthtech Leader of the Month, Vickie Lewin, Chief Growth Officer at Amplify Technology, who discusses ways to improve operational efficiency.
Other entries include Smarsh launching an Annual Services Plan, PensionPro partnering with Dynamis, Lighthouse Wealth Tech Labs partnering with Surge Ventures, CapIntel integrating with FactSet, Sycamore integrating with Quik!, Commonwealth launching outsourced tech stacks for advisors, AlphaTrAI rebranding as Praxis Solutions, Farther closing a $72 million funding round, Facet raising an additional $35 million in funding, FusionIQ appointing Eric Noll as CEO and completing a new funding round, and F2 Strategy releasing a report that found advisors remain dissatisfied with customer relationship management systems (CRMs).
Larry’s Take
End-to-end wealthtech solutions for RIAs and independent broker-dealers have come a long way from the days when only a couple names dominated the space. Nowadays, so many end-to-end platforms exist that advisors may find it difficult to keep up with all of them.
Comparing solutions can be daunting, for several reasons. Some platforms excel at specific capabilities but not others, advisors at a firm may disagree on which platform feels more intuitive, and the ideal platform may be too costly for a firm at its current stage of profitability.
The technological priorities of successful firms also can change as they grow. For instance, a wealth management firm may start attracting more ultra-high net worth clients who want alternative investments and estate planning capabilities that their current tech stack lacks.
Since it takes significant time and money to adopt new tools, RIAs and IBDs need to make realistic assessments about where their firm is today, think ahead to anticipate where their firm will be in the next few years, and choose the tech that best facilitates the desired growth.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com.
1. Amplify Technology Discusses How Advisors Can Improve Operational Efficiency
Amplify Technology, an end-to-end wealth management platform for advisors, recently onboarded as a new client Kingswood Wealth Advisors, a network of independent wealth management firms that oversees more than $2 billion in client assets, and is part of Kingswood, which oversees more than $15 billion in client assets globally.
Amplify provides integrated solutions for trading, investment management, client service, compliance, risk management and business operations tech. The firm was started by Aaron Brodt, CEO and Co-Founder of Ashton Thomas Private Wealth. And now for our Q&A with Vickie Lewin, Chief Growth Officer at Amplify Technology.
WSR: What can firms with many offices do to increase the efficiency of their investment operations?
Lewin: Standardizing firm-wide technology and procedures is a critical starting point for promoting operational efficiency. Firms can choose to create a uniform offering nationwide, or, they can install a centralized technology platform that provides necessary visibility and structure for the home office, while still allowing flexibility for advisors; such as building and trading their own models or using third-party products.
Many firms are struggling to find the right balance between systems, technology, processes, and procedures and giving advisors the freedom to run their businesses as they want. A centralized, multi-custodial platform can help a firm to offer both.
WSR: What other major technological challenges are advisors and their firms facing right now?
Lewin: A major challenge for advisors is sifting through the sheer volume of technology offerings available to them. There are now so many logos on the Kitces technology map that it’s hard to read – the choices are overwhelming, and the time spent on the wrong tool or the next shiny object that does not move the needle can be frustrating. Integrating all of the technologies is getting easier, but with so many different systems, managing the data integration at a firm level can be a major challenge and drain on resources.
WSR: How can advisors and their firms overcome those challenges while remaining focused on their core competencies?
Lewin: Instead of piecing together disparate tools, advisors and their firms should seek out all-in-one, integrated platforms that play well with other products and services that the firm relies on. The goal here is to enable advisors to have more resources to focus on client services, by simplifying and streamlining the inherent complexity that goes into managing the essential technology infrastructure that powers their firm.
2. Smarsh Launches Annual Services Plan, Aiming For Cost Predictability
Smarsh, a provider of communications data and intelligence solutions for highly regulated firms including RIAs and independent broker-dealers, introduced its Annual Services Plan (ASP), a service delivery model designed to provide Smarsh Enterprise Platform customers with more flexibility and predictable costs. The ASP offers a range of managed services, training and data services on-demand, with the ability to adjust these services as customer needs evolve.
By eliminating the need for statement of work (SoW) agreements, the firm aims to provide a more adaptable and client-friendly service structure. Services available under ASP include managed services, adoption services, data services, and training and Smarsh University. In September, Smarsh announced its upcoming AI-based communications surveillance offering, a strengthening of its partnership with Amazon Web Services and a textbook on large language models by its data science team.
“Whether it is facilitating the adoption of powerful artificial intelligence surveillance models, managing the integration of new digital communications capture channels, or administering an increasingly complex technical environment, companies can now operate across multiple work streams with more flexibility and control,” said Kim Crawford Goodman, CEO of Smarsh.
3. PensionPro Partners With Dynamis On Compliance And Payrolls For TPAs
PensionPro, a provider of workflow automation software for third-party administrators (TPAs) and a subsidiary of AmericanTCS, is partnering with Dynamis, a product from 7 Simple Machines that specializes in real-time data collection and processing for TPAs. Automated data flow between the platforms aims to provide TPAs with census, gross compensation, payroll and paycheck data reporting from more than 200 human resource information providers.
The integration will offer PensionPro users access to real-time data and feature year-end testing. The partnership strives to ease compliance requirements, enhance efficiencies for TPA operations and accuracy of reporting, as well as provide advanced data access. AmericanTCS provides trust, custody, administrative, investment and technology solutions for retirement plan sponsors, advisors, TPAs and others. Over $10 million in retirement funds move through platforms by 7 Simple Machines each month.
“TPAs are required to ensure the data they collect on retirement plan participants is accurate, and much of the industry is collecting this information manually, which not only takes time but introduces the possibility of data-entry errors,” said Darren Conner, Chief Operating Officer at PensionPro. “Dynamis brings a new level of service to managing payroll data and I consider this is an essential tool for TPAs delivering 3(16) [fiduciary] services.”
4. Lighthouse Wealth Tech Labs Partners With Surge Ventures
Lighthouse Wealth Tech Labs, a solutions incubator by the founders of Beacon Strategies, partnered with Surge Ventures, a SaaS venture studio, to focus on providing financial advisors with scalable, tech-enabled solutions for organic growth, client acquisition and business efficiency. Lighthouse Wealth Tech Labs aims to solve challenges that limit financial professionals’ ability to build and scale their practices.
Surge Ventures co-founds and invests in wealthtech start-ups that address data and privacy needs for wealth management firms and other financial services businesses. It recently launched Surge Labs as an incubator program to provide early-stage wealthtech startups with resources, mentorship and access to investors. Beacon Strategies provides consulting services, operational insights and vendor management services.
“Lighthouse is an ideal partner for Surge Labs,” said Sid Yenamandra, Founder and CEO of Surge Ventures. “By working together, we can fuel the next generation of solutions that will not only meet the immediate needs of wealth management but also position advisers for future success.”
5. CapIntel Integrates With FactSet On Proposal Generation Tools For Advisors
CapIntel, a proposal generation and client engagement platform, has integrated its digital investment presentation capabilities into the FactSet Workstation, which provides advisors with data and analytics to help clients make informed investment decisions.
The integration seeks to improve advisors’ ability to foster conversations that build investor trust and satisfaction. CapIntel serves more than 20,000 advisors and wholesalers across North America. FactSet serves more than 8,200 global clients, including the buy-side and sell-side, wealth managers, private equity firms and corporations as well as over 216,000 individual users.
“We believe this combined offering creates a groundbreaking client-service and investment tech stack. Advisors will have a simple, seamless, and powerful way to analyze investments and speak to their clients about them,” said James Rockwood, Founder and CEO of CapIntel. “This partnership with FactSet reflects our commitment to constant innovation and making clients better understand their investments.”
6. Sycamore Integrates With Quik! On Client Form Automation And Update Management
The Sycamore Company, a wealthtech firm that aims to help broker-dealers and RIAs harness the power of their data, recently announced a new integration with Quik!, a cloud-based app designed to simplify form automation and update management. The integration will help wealth management firms and their advisors automatically populate client forms using data from the Sycamore platform, reducing the need for manual data entry and potentially mitigating errors.
The integration has the goal of allowing financial professionals to focus more on client relationships and strategic planning. Sycamore describes its platform as a way to help firms reduce risk and improve their operations. Quik! offers services to the wealth management industry that include managing a library of more than 40,000 financial forms that the company calls fillable, interactive, secure and e-signable.
“We’re thrilled to integrate with Quik!, as this represents a significant step forward in creating a unified workflow for our clients,” said Mike Overdorf, President and Founder of Sycamore. “This integration ensures that data remains accurate, reportable and accessible, helping advisors deliver better business outcomes.”
7. Commonwealth To Launch Outsourced Tech Stacks For Advisors In 2025
Commonwealth Financial Network announced during its recent 2024 National Conference that next year the firm will launch outsourced technology stacks, called CTO Services, to improve advisor operations. The turnkey managed service offering will provide comprehensive IT support including hardware management, audio-visual, networking and telecom services.
The firm’s Advisor360° software platform already provides portfolio reporting, a personalized dashboard, financial planning tools, investment proposals, models, rebalancing, trading, CRM, document imaging, customizable employee alerts and a client-facing portal. Commonwealth supports approximately 2,200 advisors and had over $296 billion in assets as of Dec. 31.
“As advisors’ businesses grow, so do their technology needs. By seeking to deliver the best technology expertise and solutions tailor-made for businesses, advisors can focus resources on meeting client needs rather than managing an IT team and equipment,” said Chris Blotto, SVP, Chief Digital and Information Officer at Commonwealth. “As a concierge offering, our new CTO Services will help them scale efficiently and be more productive, without headaches.”
8. AlphaTrAI Rebrands As Praxis Solutions, Repositioning Its Offering And Value Prop
San Diego-based wealthtech solutions provider AlphaTrAI announced its rebranding as Praxis Solutions and a shift in its value proposition. The firm derived its new name from Greek philosophy. The word “praxis” means exercise or practice of an art, science or skill. With the rebranding, the firm aims to provide a unified client experience that will draw on the skills of technology operations specialists, algorithm builders and business process experts.
The Praxis rebranding follows its August acquisition of Anchor Advisory Services, a scheduling, sales management and consulting solutions provider for financial services. In April, the firm hired John Sweeney as President. The firm also expanded its leadership team and board, broadened its core competencies and eliminated unnecessary business lines in preparation for its rebranding and repositioning.
“Our company was born of the merger of vertical expertise and the application of advanced, customized technology solutions,” said Bill Dwyer, who continues as CEO of Praxis. “Over the past two years, we’ve reorganized, built and brought on board additional resources to deliver a high-quality, all-inclusive framework that helps stakeholders identify areas of opportunity, develop tech-enabled programs and implement them.”
9. Farther Closes $72 Million Funding Round, Surpasses $5 Billion In AUM
Farther, a technology-focused advisory firm, closed a $72 million Series C funding round to grow its advisor network and improve its wealth management platform. Viewpoint Ventures and CapitalG, an independent growth fund of Google’s parent company, Alphabet, led the funding round, which puts Farther at a valuation of $542 million. It has raised more than $118 million in total funding since inception in 2019.
The firm also surpassed $5 billion in assets under management (AUM) across more than 100 wealth managers and 5,000 clients. Farther’s proprietary, custom-built technology seeks to spur operational efficiencies, advisor productivity and payouts, and asset growth. Farther also has received investments from Bessemer Venture Partners, Context Ventures, Cota Capital, Khosla Ventures, Lightspeed Venture Partners, MassMutual Ventures and Moneta Venture Capital.
“Removing operational and administrative hurdles creates growth opportunities for our advisors, and they can offer a superior experience to even more clients,” said Taylor Matthews, CEO and Co-Founder of Farther. “This capital infusion signals strong market confidence in that vision. With this investment, we will continue enhancing Farther’s technology to set a new benchmark for wealth management advisors and clients alike.”
10. Facet Raises Additional $35 Million In Funding Round Led By Multiplier Capital
Facet, a fintech company and RIA, raised an additional $35 million in financing in a funding round led by Multiplier Capital. The firm will use the capital to develop technology enhancements, expand member offerings and support long-term growth. Since inception in 2016, Facet has raised approximately $210 million in total funding.
The firm charges a flat membership fee to pair individuals with a holder of the Certified Financial Planner (CFP) designation, who provides tailored financial advice. Facet has served more than 14,000 households nationwide. Its other investors have included Warburg Pincus, Durable Capital Partners, Slow Ventures, Telesoft Partners and Green Cow Venture Capital. Facet had nearly $3.5 billion in AUM as of its October SEC ADV filing.
“This funding isn’t just about growth; it’s about reinforcing our commitment to helping our members live for today and plan effectively for tomorrow,” said Anders Jones, CEO of Facet. “This latest capital allows us to continue evolving our offerings, ensuring that we not only meet but exceed the expectations of those who rely on us for consistent, high-quality financial advice.”
11. FusionIQ Appoints Eric Noll As CEO, Completes New Fundraising Round
FusionIQ, the cloud-based tech platform that supports banks, credit unions, RIAs and asset managers, appointed Eric Noll as CEO and secured a new round of funding. Noll also is the current Chairperson and Public Governor of FINRA’s Board of Governors. The hiring and fundraising aim to bolster the company’s organic growth and acquisitions efforts, and to enhance the reach of its end-to-end FusionIQ One platform.
Prior to FusionIQ, Noll was CEO of Stone Ridge Capital Partners; President and CEO of Convergex; Executive Vice President, Transaction Services for NASDAQ; and Founder of Willow Creek Capital. FusionIQ also announced its new Board of Directors: Eric Noll as Chairman, and new Directors Erik Oros, CIO at Gideon Strategic Partners; Timothy Powers, CEO of OakRidge Management Group; and Scott Ganeles, CEO of iAltA.
“The company has established an integrated wealthtech platform that provides the foundation for accelerated growth and further industry leadership, thanks to a firmwide effort led by our C-suite executives,” Noll said. “By equipping advisors and institutions with innovative digital wealth management solutions and expertise, we are positioned to significantly expand across multiple industry channels as we deliver transformation in financial services.”
12. F2 Strategy Report: Advisors Remain Dissatisfied With CRMs
Despite improvements made in CRM systems, financial advisors and others in the wealth management industry remain dissatisfied with their CRMs, according to the findings of F2 Strategy’s ”Benchmark Report: Wealth Management’s Satisfaction with CRMs.” The report focused on five trends the research uncovered.
The percentage of firms searching for a new CRM decreased from 18% in 2020 to 6% in 2024, although the reasons why were not clear. CRM satisfaction remains low, and integration issues decreased slightly since 2020 but frustration with customization and workflows grew. More integrations are resulting in higher overall CRM satisfaction. Wealth management firms want custodian workflow integration. And wallet share tracking decreased 18% in two years, according to the report.
“Perhaps the most eye-opening trend to emerge from the data was the large drop in the amount of firms tracking wallet share in just two years,” according to the report. “Not using available capabilities to monitor business development activities could be one of the reasons why the industry’s average organic growth rate has also dropped. It means that wealth management firms are not leveraging their CRM and data to their full potential and are missing opportunities to grow.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
