We’re back with another round of attention-grabbing wealth management technology headlines. Even in a short month, there was a lot happening. Here is what we think is impacting our industry the most this February:
CFPB Disarray Puts Future Fintech, Bank Oversight Into Question
We have mixed emotions on this news. There are times when having guardrails is a good thing. A consumer protection board ensures wealth management has a high standard for excellence and ensures that investors have trust in advisors supplying advice in a well-regulated but not overly regulated environment. Dissolving this entity introduces the risk of bad actors spoiling the bunch: it’s bad for America if investors begin to question the motives and legitimacy of the industry. Investors may steer clear of advisory relationships and self-manage their wealth, which will lead to sub-optimal outcomes for those who need it the most.
AssetMark Appoints Alex Pape as EVP and Chief Technology and Product Officer
Bringing in a qualified institutional technologist, which Alex clearly is, should be great for AssetMark. Since its acquisition by GTCR, we’ve seen really compelling moves and continue to be excited about what AssetMark is doing. Alex will understand the significant investment in technology infrastructure and its ability to deliver an outsized impact on advisor clients. However, we expect a learning curve with the TAMP model: smaller advisors, more B2B workflows and external integration into their desktops. Pay attention to AssetMark as an increasingly relevant industry disruptor.
Popular AI Startup for Advisors, Jump, Raises $20M
As a rule, F2 does not lean quickly into the industry zeitgeist for disruptive technologies or trends. Historically, these have cost the industry far more time and money than they have returned. However, with specific AI use cases, we are starting to see material evidence that these tools are saving advisors hours per week on practice management, meeting preparation and note-taking/CRM updates. For this reason, we’re highlighting Jump’s new funding round as a great indication of increased value and recognition of a tool we have seen produce great results.
This technology covers an area of financial planning that isn’t well served by other planning technology. It allows advisors to have deep conversations about long-term care, develop portfolios, and structure investment plans that cover these inevitable costs. It creates stickiness as wealth creators—original-client investors—connect their advisors with their heirs representing the second generation who will be a part of these conversations with the aging client. We don’t see this area get enough attention, and we’re excited to see Waterlily get this funding for such a noble effort.
Kabir Sethi Joins Board of AI Startup Zeplyn
Industry heavyweight Kabir Sethi (Merrill Lynch and LPL alum) is one of the most credentialed technologists in the space today. Having a high-caliber leader like Kabir join this branch of advisor efficiency technology shows how important it is to practice management. Kabir is showing a commitment to improving the lives of thousands of advisors across the nation. It’s also an indication of how much quality and thoughtfulness has gone into the building out of Zeplyn and the promise it shows in helping automate many of the more manual advisor tasks.
Stay tuned for more key insights and perspectives as the industry continues to evolve through advances in technology and changes in regulations.