September was a busy month with many notable government transitions, firm improvements and M&A actions making business headlines. At F2 Technique we all the time take into consideration what all of it means for advisors and naturally, their know-how selections. With out additional ado, listed below are 5 wealthtech headlines on our minds in October 2023:
Orion is charging ahead and now, by tapping Natalie Wolfsen to guide its efforts, it’s pulled two executives from certainly one of its greatest rivals with Charles Goldman departing in early 2021 for Orion’s board. I’ve predicted for a while that Orion is shifting towards providing custody companies and now that solely appears extra true. The query stays, will they do it organically or will they purchase a more moderen custodial providing within the market at the moment?
The headline right here is “nothing broke.” Whereas many people have been taking within the final moments of summer season, Schwab was shifting 7,000 advisor corporations, 3.6 million accounts and $1.3 trillion in property to its platform. And from what we hear, it was a remarkably clean transition. It’s no small feat to maneuver that a lot enterprise from one huge group to a different and Schwab’s know-how groups ought to get numerous credit score for this spectacular effort.
All of us just lately discovered that Joe Duran’s new firm will take minority stakes in RIAs and assist them grow to be nationwide, scaled platforms. From a wealthtech standpoint that is reasonably fascinating, as a result of historically, minority funding is money solely. We hope this will probably be totally different, and there will be money in addition to enterprise mannequin operational effectivity and know-how effectivity. It might be good to see them be a capital companion plus insights to assist RIAs construct higher mousetraps.
CAIS will lead the democratization of other investments to the mass prosperous. It is going to be exhausting due to the variety of touchpoints, complexities and threat, nevertheless it’s a particular want. Companies within the impartial channels have wanted and wished one thing to place them on par with their wirehouse rivals and bespoke fancy RIAs for some time, and this will probably be more likely to be very profitable due to the demand. This technique fills in that clean within the market at the moment.
Avantax (previously Blucora), a tax-focused wealth administration agency will probably be taken personal in an all-cash sale to Cetera Holdings. The deal ought to shut by the top of the yr. This deal is a masterstroke. From a know-how shopper expertise standpoint, bringing taxes and wealth administration recommendation collectively, we expect, represents a
potential for a really sticky relationship with shoppers in addition to all types of how to grasp extra about them, their funds, their plans, their journey and the transition of their wealth.
That’s all perspective we’ve room for this month. We’ll be again with extra takes on huge headlines in November.
