FinovateFall to Showcase Innovations in Wealthtech and Wealth Management

FinovateFall to Showcase Innovations in Wealthtech and Wealth Management

For the first time, FinovateFall 2024 (September 9-11) will showcase innovations in wealthtech. From AI-powered analysis and decision-making to embedded technologies that are democratizing the world of investing, now is a great time for asset managers, RIAs, and others looking to leverage technology to boost their wealth management businesses.

“Finovate spotlights cutting-edge technology and finserv themes dominating industry news,” Finovate VP and Demo Director Heather Stowell said. “The Great Wealth Transfer has been at the forefront of conversations, and we’re excited to showcase several startups innovating within wealth management and investing.”

Indeed. In its annual survey of wealth managers, Acuity Knowledge Partners noted that the intergenerational wealth transfer was a major opportunity and challenge facing asset managers. Additionally, survey respondents also expressed a desire for comprehensive solutions for estate, tax, and retirement planning. Growing revenues via customized research offerings was also mentioned as a goal, along with managing costs while embracing digitalization and new, enabling technologies like AI.

Below are six companies offering wealthtech solutions this year at FinovateFall 2024 in New York. For more on our wealthtech offering at FinovateFall next month, check out Wealthtech at FinovateFall: Client Centricity and the Rise of Alternative Assets.


Eko Investments

Offers investments to all clients starting from $10, and not just the top 1% via a financial advisor. Headquartered in New York. Founded in 2021. LinkedIn.


GPTadvisor

Empowers financial institutions with AI tools for optimized decision-making, streamlined workflows, and improved client advisory, driving business growth and operational excellence. Headquartered in Madrid, Spain. Founded in 2023. LinkedIn.


illuminote

Enables financial institutions and advisors to authenticate registered client legal estate records with confidence, providing access to authenticated data without expensive tech integrations. Headquartered in Santa Rosa, California. Founded in 2022. LinkedIn.


QuAIL Technologies

Automates processes and increases productivity so organizations can spend less time managing and more time growing. Headquartered in Pittsburgh, Pennsylvania. Founded in 2022. LinkedIn.


TIFIN AG

Uses AI and ML to deliver actionable insights, helping financial advisors make data-driven decisions that boost client acquisition, expansion, and retention, achieving organic growth. Headquartered in Charlotte, N.C. Founded in 2023. LinkedIn.


TradingValley

Empowers companies that adopt its AI investing model that reduces the investing research time for both individual and institutional investors. Headquartered in Taiwan. Founded in 2015. LinkedIn.


Are you an innovative fintech with new technology that’s ready for prime time? Join us in New York next month for FinovateFall and take advantage of the opportunity to showcase your solution before an audience of 2,000+ decision-makers.

Wealthtech at FinovateFall: Client Centricity and the Rise of Alternative Assets

Wealthtech at FinovateFall: Client Centricity and the Rise of Alternative Assets

For the first time, Finovate will offer a dedicated wealthtech/wealth management track at FinovateFall. Featuring keynote addresses, power panels, and more, our new wealthtech track will cover topics ranging from the rise of alternative assets to the role of technology and digitization in helping meet the needs of a new generation of investors.

“I’m really excited about the new Wealthtech track we’re offering at FinovateFall this year,” said Greg Palmer, host of Finovate. “So much innovation is taking place on the wealth management side of the fintech industry right now, and there are a lot of opportunities out there. Customer demographics are shifting, new assets are gaining popularity, and new technologies are raising the bar for every industry. It’s a crucial time to be paying attention to the space.”

Over the next few weeks, we’ll share a preview of the wealthtech content we have in store for you this year at FinovateFall. Today, we’re highlighting a pair of Power Panels that will take place on Day Three, September 11, of the conference.

Both of these Power Panels will be moderated by April Rudin, CEO and Founder of The Rudin Group. LinkedIn.

The Rudin Group is a global wealth management/wealthtech marketing consultancy serving banks, wealth management firms, fintechs, and wealthtechs.


The Future of Client Centricity in a Tech-Disrupted Wealth Landscape

Our Power Panel on the Future of Client Centricity will examine ways in which technology has altered the landscape of wealth management. The panel will discuss the impact of the Great Wealth Transfer from Baby Boomers to Millennials and what wealth managers should do to meet a new generation of investors’ growing preference for digital solutions and tools.

Andrea Finan, Head of J.P. Morgan Self-Directed Investing, J.P. Morgan Wealth Management

Finan is responsible for developing strategy, driving scale and profitability, and expanding capabilities to serve the firm’s Self-Directed and broader Wealth Management clients. She has 20 years of experience in financial services and is well-versed in creating high-performing digital products. LinkedIn.

Ali Geramian, Managing Director, Anthemis

Geramian is currently a Partner at Anthemis, where he steers the Anthemis ecosystem and investor relations platform to catalyze mutual value creation, collaboration, and transformative partnership opportunities across the firm’s global portfolio companies and strategic investor base. LinkedIn.

Michelle Julia Ng, Software Engineer, Apple

Ng is a software engineer with Apple. Educated at Stanford University (double majoring in Computer Science/Artificial Intelligence and History), Ng brings experience in the practical application of emerging technologies – including system intelligence, machine learning, and robustness analysis – having worked with Apple’s Vision Pro and Watch products. LinkedIn.


How Will Technology Transform How Alternative Assets are Managed?

This Power Panel will look at the rise of alternative assets through the lens of a shift toward diversification, a search for yield, a demand for uncorrelated returns, and a growing desire among a new generation of investors for investment opportunities that are aligned with their personal values. The Panel will also discuss how enabling technologies – from AI to the blockchain – will influence the way alternative assets are managed.

Bundeep Singh Rangar, CEO of Fineqia

A thought leader in blockchain technologies, Rangar is CEO of Fineqia International. Fineqia is a digital asset business that builds and targets investments in early and growth-stage technology companies. An investor in digital industries, Rangar has raised venture capital from entities such as Rakuten and secured private equity investment from U.S. financial institutions. LinkedIn.

David Teten, Venture Partner at Coolwater Capital

Teten is a Partner with Coolwater Capital. Known as the “Y Combinator for Emerging VCs,” Coolwater offers an accelerator for emerging VC fund managers and invests as a limited partner, into general partnerships and fund management companies. Coolwater also invests directly into startups. He is Chair of PEVCTech, a community of investors in private companies using AI, technology, and analytics to generate alpha. LinkedIn.


Photo by Morgan Housel on Unsplash

2019 U.S. Wealth Management Outlook: The Old Guard And Fintech Cozy Up

2019 U.S. Wealth Management Outlook: The Old Guard And Fintech Cozy Up

As part of the #FinovateLive series, April Rudin, Founder and CEO of The Rudin Group and global wealth marketing strategist, explores the current wealth management space, and why this year the industry looks set to merge closer with fintech, as incumbent players realise they need to embrace technology to meet demands of younger generations. 

The old guard wealth management industry and fintech have kept each other at arm’s length for years, claiming the other lacks the tools to meet current client needs. But in 2019, we expect they’ll put past differences aside and finally cozy up to each other.

“Partnerships” will be the buzzword for the new year as incumbent players realize they must embrace tech to meet the demands of their millennial clients, while so-called fintech players realize sometimes clients really do want the intimacy of a face-to-face meeting.

As proof of concept, look no further than Morgan Stanley’s recently announced bid to buy Solium Capital in a $900 million all-cash deal – its biggest acquisition since the financial crisis.

By snatching up the Canada-based employee stock plan administrator, which counts Hootsuite and Dropbox among its clients, Morgan Stanley hopes to facilitate a path to draw millennials into its wealth management practiceSolium, meanwhile, receives the backing of one of the largest banks in the United States.

We expect to see more of this in 2019 – whether it’s outright acquisitions of smaller players or strategic partnerships between incumbents and fintech players.

With the $30 trillion generational wealth transfer in its early innings, pure-play robo-advisers are finding that their algorithmic services aren’t enough to win over millennials on the brink of their asset accumulation years. A robo-adviser may be sufficient when a plan is in place, but fintech and artificial intelligence (AI) have yet to replicate the insights gleaned or the comfort level achieved through one-on-one conversations. This is especially true for young families balancing student loan payments, first homes, and education planning for young children.

Even my millennial son told me he was frustrated that robo-advisers kept being pushed on him when he really wanted a human adviser to help him navigate through the world of investments.

But it’s not just the robo-advisers that gain from partnering with incumbents. Traditional wealth managers also benefit by having their services buttressed by fintech players. It’s no longer an all-or-nothing dance between the two: Incumbents can leverage in-house technology to spend more time forging meaningful client relationships. What we’re seeing in 2019 is that an industry once known for its left-brained quantitative skills can now work the right side of its brain – all thanks to technology, ironically.

Clients will soon be benefiting from hybrid advice. While algorithms can quickly churn out portfolio options that advisers previously spent days crafting, advisers today can use the time saved to think more critically about their recommendations. Rather than prescribing financial advice, they can embrace a more holistic approach to determine what their clients want and how they feel about their portfolio and wealth.

But the expected partnerships in the wealth management industry don’t just apply to adviser-client dynamics. Total investable assets in North America are expected to grow by nearly 10%, to $28.8 trillion by 2021, according to a 2018 Ernst & Young study. And that wealth is not just concentrated in a mix of stocks and bonds. The era’s low interest rates have compelled households to allocate some of their wealth to alternative asset classes. For this reason, advisers need to know how to manage and analyze diverse holdings.

And as the wealth management industry continues to grow – both in terms of assets and clients from the wealth transfer – it will need to attract a young, engaged workforce to meet increasing and evolving demands. Analog solutions won’t cut it in a digitized world, especially when it comes to luring talent away from Silicon Valley. While many firms previously relied on a patchwork of legacy systems to conduct business, today’s younger workforce wants clean, reliable interfaces to complete their work.

We expect to see increased intergenerational team partnerships in the wealth management industry. After all, the “average” adviser is 55 – and perhaps thinking of their own retirement. We anticipate they will be leaning on their younger staffs and calling on their expertise. While advisers may have the years of experience, younger employees – and digital natives – will know new ways of reaching existing clients and prospects.

The room for partnerships in 2019 extends throughout the wealth management pipeline. From mergers between incumbent and fintech players to generationally diverse teams amid the wealth transfer, it’s clear we’re moving from conversation to commitment.

This article was originally published on CFA Institute, February 2019 >> 

Top Business-to-Business Wealth Tech Players

Top Business-to-Business Wealth Tech Players

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If you’ve been following our series on wealth tech, you’ve seen our analysis of the industry as a whole, a review of the top trends, and an examination of B2C wealth tech players.

Our wealth tech coverage continues this week with a review of business-to-business (B2B) players in the wealth tech space. These are companies that cater directly to banks, advisors, or brokerages, instead of offering products or services directly to consumers. B2B wealth tech is a large category, so I’ve sub-divided it into four digestible groups and listed my top picks for each category. Since category sizes vary, the number of selections also varies.

Alternative investment services
These are platforms that help advisors connect clients with unconventional investment types, such as private equity, hedge funds, futures, real estate, etc.

Screen Shot 2017-01-19 at 11.44.57 AMEquityZen’s EZ Institutional lets advisors give clients access to a diverse asset class

Technology for advisors and brokerages
These are tools available via API, SDK, or web interface to help advisors compete with robo advisors by allowing them to invest with less bias, increase client communication, scale operations, find new clients, and more.

Screen Shot 2017-01-19 at 11.40.41 AMTrizic offers advisors their own digital tools to compete with robo advisors

Non-U.S. B2B investment and advisor technology
Similar to the above category, these companies offer tools for advisors outside of the U.S.

Screen Shot 2017-01-19 at 11.30.52 AMmeetInvest helps advisors invest like world-renowned market experts

News and Information Companies
These are online platforms, APIs, or SaaS offerings that provide advisors market information, show them trending news, or connect businesses with market data to power their own products.

Screen-Shot-2016-10-31-at-3.22.22-PMForwardLane’s dashboard acts like a private research analyst for advisors advisors, helping them stay current on new trends and funds

Top Direct-to-Consumer Wealthtech Plays

Top Direct-to-Consumer Wealthtech Plays

wealthtech4

Our wealthtech industry coverage continues this week. We looked at the industry last week and reviewed the top trends earlier this month. Today we’re taking a look at industry players with B2C offerings—in other words, companies that market directly to consumers and not through businesses.

Since wealthtech is broader than just roboadvisers, we’ve divided B2C wealthtech players into seven categories and laid out our top picks for each group. Since category sizes vary, the number of our selections also vary.

Top in-house builds from traditional players
These are offerings from traditional wealth management firms that have been built in-house (or purchased and then white-labeled) and marketed under the firm’s brand.

Fully automated roboadvisers
These are online platforms that provide automated, algorithm-based portfolio management without intervention from human advisers and without personalized, one-on-one conversations with a human adviser.

screen-shot-2016-12-22-at-4-06-40-pmAcorns takes a unique approach by linking a user’s debit card and investing their “spare change”

Hybrid roboadvisers
These are traditional advisory services, including personalized conversations and actively managed portfolios blended with computerized portfolio recommendations. Business Insider reports hybrid roboadvisers will manage 10% of all investable assets by 2025.

screen-shot-2016-12-22-at-4-11-08-pmSigFig has partnered with multiple banks, including Wells Fargo, Pershing, and Citizens Bank

Non-U.S. roboadvisers

Alternative investing platforms
These are platforms that link participants to unconventional investment types, such as private equity, hedge funds, futures, real estate, etc.

screen-shot-2016-12-22-at-4-18-08-pmWith Motif, uses invest in grouped stocks and ETFs that revolve around a common theme

Non-U.S. alternative investing platforms

News and information companies
These are online platforms that help users discover news and market trends before they go mainstream. Some include social networking aspects.

screen-shot-2016-12-22-at-4-23-47-pmTickerTags helps users discover trends even before they become news

Wealth Tech: A Fintech Buzzword Overview

Wealth Tech: A Fintech Buzzword Overview

wealthtech4

Continuing our series on wealth tech (check out our first post highlighting top trends), I wanted to step back and look at the industry as a whole. While multiple published analyses about robo advisors can be found, little is published regarding the broader wealth tech industry.

What is wealth tech?

Simply put, wealth tech is a segment of financial technology that focuses on enhancing wealth management and investing. That means that while robo advisors are a large—and quite popular—piece of the wealth-tech puzzle, other pieces merit discussion, too.

What does wealth tech encompass? Exclude?

Technology from traditional wealth management firms, alternative investment solutions from non-bank players, and tools to support financial advisors—all fall under wealth tech. Ancillary technology, such as PFM, are not considered part of wealth tech.

A robo advisor by any other name

While the term robo advisor is commonly used (a Google search produces 2.2 million results), not all automated management and advisory companies appreciate the name. For example, Personal Capital (FS14, FDSV16) CEO Bill Harris doesn’t classify his company as a robo advisor, which he views as a wholly automated investment tool. Instead, he strives to balance high tech with high touch. In an interview with WealthManagement.com Harris said, “We do have technology that is helping to automate and scale what we do, but in addition to that technology, just as important, are the individual advisers. Ultimately, the job of matching a household with the optimal portfolio is a more complicated thing than plugging information into a series of algorithms.” iQuantifi (FF14) is on the other end of the spectrum. In his demo at FinovateFall 2014, iQuantifi founder and CEO Tom White said, “We’re the only true robo advisor, and we’re not ashamed to call ourselves a robo advisor.”

Industry movement

Since the advent of robo advisors in 2008, we’ve seen a lot of growth in the U.S. robo advisory market. Take a look:

screen-shot-2016-12-13-at-1-28-26-pm

Assets under management are predicted to climb six-fold in the next three years, to $2.2 trillion. With the number of robo advisor launches increasing by an average of 43% YOY since 2008, it’s likely we’ll see a decrease in the number of robo advisor launches in the U.S., combined with an increase in M&A (mergers and acquisitions) activity to further consolidate the industry.

Next week, I’ll continue the wealth tech industry analysis by taking a look at divisions in the industry and reviewing some key players.


Sources:

Financial Review
Logging on to the Future of Financial Advice
by James Frost

A.T. Kearney
Hype vs. Reality: The Coming Waves of “Robo” Adoption
by Teresa Epperson, Bob Hedges, Uday Singh, and Monica Gabel