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HomeFinancial AdvisorThe most recent in monetary #AdvisorTech (January 2024)

The most recent in monetary #AdvisorTech (January 2024)

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Welcome to the January 2024 version of Newest Information in Monetary #AdvisorTech, the place we talk about the large information, bulletins, and underlying traits and developments rising on the planet of expertise options for monetary advisors.

This month’s problem kicks off with the information that retained asset administration platform Pontera has raised $60 million in enterprise capital funding as advisors more and more look to immediately handle purchasers’ 401(ok)s and different exterior belongings, though an ongoing investigation by Washington state regulators into whether or not advisors’ use of Pontera violates state rules on information entry with shopper passwords and/or phrases of service of employer retirement plans, raises questions on whether or not Pontera (and the advisors who use it) can persuade regulators that its underlying mannequin doesn’t violate shopper privateness.

From there, the newest highlights additionally embrace various different fascinating advisor expertise bulletins, together with:

  • JPMorgan has introduced plans to shut its robo-advisor providing after simply 4 years, broadly highlighting the challenges of robo-advisors in overcoming the difficult economics of buying and serving small purchasers and, specifically, exhibiting that even an organization resembling JPMorgan with a big buyer base might have issue distributing its choices when these choices don’t match the wants or desires of its clients (primarily banking-focused).
  • Envestnet is rumored to be exploring the sale of account aggregation supplier Yodlee, highlighting the difficulties account aggregation has had in delivering on its unique promise of offering holistic insights into buyer information, largely as a result of it has been a terrific problem to keep up it. the integrity of the info itself, leaving little potential to determine how one can flip that information into significant insights for advisors
  • Revenue Lab has introduced that it has chosen BridgeFT to supply API entry to multi-custodian information for its retirement planning software program, signaling extra broadly the necessity for API hubs that may allow tech startups to entry custodial information. with out the cumbersome course of of making and sustaining connections with particular person custodians, a necessity that BridgeFT has addressed to fulfill with its WealthTech API resolution.

Learn evaluation on these bulletins on this month’s column and a dialogue of extra traits in advisory expertise, together with:

  • Arch, a expertise supplier aiming to simplify the numerous administrative and bureaucratic burden of managing a number of different investments, has accomplished a $20 million Sequence A funding spherical as advisor curiosity in options continues. rising (though it stays to be seen whether or not investor curiosity in options will stay as excessive in the next rate of interest atmosphere)
  • The SEC has been soliciting feedback from RIAs on its use of AI expertise because it seeks to finalize its proposed “Predictive Information Analytics” rule, which has been broadly criticized for imposing an onerous compliance burden on corporations surrounding the expertise. that they use (even when that expertise has little to do with AI to start with)

And remember to learn to the tip, the place we offer an replace to our well-liked “Monetary AdvisorTech Options Map” (and in addition add the adjustments to our AdvisorTech Listing).

*And for #AdvisorTech corporations who need to submit their expertise bulletins for consideration in future points, ship them toTechNews@kitces.com!

Learn extra…



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