Can You Create Your Own Action On Advyzon To Trigger A Template

Podcast: Play in new window | Download | Embed

Subscribe: RSS

Come on in, sit back, relax and enjoy episode 114 of the WealthTech Today podcast. I'm your host, Craig Iskowitz, the founder and CEO of Ezra Group Consulting. Over the past 16 years, we've worked with hundreds of FinTech vendors and enterprise wealth management firms to guide them towards making better business and technology decisions.

The WealthTech Today podcast features interviews news and analysis on the trends and best practices in engineering for wealth management, asset direction, and other areas of fiscal services.

This is our October News Roundup, and nosotros are covering iv stories. In the past nosotros had covered more than than that, simply nosotros're going to go more in-depth on fewer stories. We are coordinating with our partners at Kitces.com, then delight check out The Latest In Financial #AdvisorTech (October 2021) and their Advisor Tech Map, which nosotros work with Michael Kitces to produce.

Click hither and schedule a Discovery Session to observe out how Ezra Group tin can help your fintech house abound revenue in the wealth direction space.

Oct News Stories

Riskalyze Bucks the Trend with a Blowout In-Person Conference
Docupace Acquires Client Information Gathering Software Vendor PreciseFP
MassMutual Launches Crypto Subsidiary for RIAs
Envestnet Launches an Alternatives Substitution Powered past iCapital
Advyzon Adds FIDx Integration for Managing Held Away Assets
Morningstar Partnering with TIFIN'due south Magnifi on Direct Indexing
Kitces Counselor FinTech Map (October)

Companies Mentioned

Advyzon [31:49]
Asset Map [14:06]
Docupace [11:57]
Envestnet [24:22]
eMoney Advisor [14:06]
FeeX [31:49]
Females in Finance [04:37]
FIX Flyer [x:18]
FIDx [24:51]
Flourish Financial [17:35]
FP Blastoff [30:17]
Holistiplan [xxx:23]
iCapital Network [24:25]
jaccomo [12:xiii]
MoneyGuidePro [14:05]
Morningstar [07:35]
Orion Counselor Solutions [09:19]
Paxos Trust Company [17:42]
PreciseFP [12:48]
Redtail Technology [14:02]
Riskalyze [04:08]
TIFIN Group [25:27]
Trucendent [25:08]
Vanilla [29:49]
Wealthbox CRM [14:03]

Consummate Episode Transcript

Craig: Come on in and sit back, relax and enjoy episode 114 of the WealthTech Today podcast. This is our October wealthtech news episode, and I'll be covering these 7 stories. Number one, Riskalyze bucks the tendency with a blowout in-person briefing. Two, Docupace acquires client data gathering software vendor PreciseFP. Three, Flourish launches Flourish Crypto service. Iv, Envestnet launches an alternatives substitution powered by iCapital, Advyzon adds FIDx integration. Number six, TIFIN portfolio visitor Magnifi integrates Morningstar research for direct indexing. And finally the Kitces advisor FinTech map updates for Oct. A couple of quick housekeeping tasks earlier I forget a quick shout out to our sponsor, the Invest in Others Foundation, go to investinothers.org and be sure to subscribe to the prove wherever yous listen to podcasts so you don't miss future episodes. At present let'due south become this episode started.

Riskalyze Bucks the Trend with a Blowout In-Person Conference

Our first story in the October News is the Riskalyze conference. Boy, it was good to go out, get on a airplane, fly somewhere, come across some people, at that place'due south zip like it. For going from, I think I was doing ten conferences a yr or more to none, information technology's quite a alter. It was nice to be dwelling, still prissy to get out. And this was a blowout of all blowouts. I think there were over 800 people. I think I saw 880 as a number at this conference out in Palm Springs, California never been there before. Riskalyze bucking the trend as a number of other organizations postpone conferences, including FPA, Informa'southward Inside ETFs, or the Invest in Others Foundation, which is 1 of our sponsors charitable foundation, they postponed their annual gala. T3, Joel Bruckenstein's T3 Briefing postponed until next year and Wealth Stack.

Now Wealth Stack and T3 were also supposed to exist the same week. The terminal week of September, with Riskalyze. I know some people, my good friend. Gavin Spitzner for case, was going to all 3. He's a little crazy if yous enquire me, but he was going to be in Florida for Wealth Stack on Monday, then go to T3 on Tuesday, so off to Palm Springs for Riskalyze on Wednesday. Now I was doing two, I was doing T3 and Riskalyze, which was enough, two conferences in a week is plenty, only since it was postponed, I had some free time, and just headed out to Palm Springs, a leisurely trip out to Palm Springs. Another conferences that did get in person every bit well, Morningstar, Orion Advisor, and of course Riskalyze.

And then what did I do at this briefing? I was running a panel, which they call the Experts Panel on advisor engineering science. Nosotros had some not bad panelists, which made my chore a whole lot easier, Rene Nourse, Shannon Saccocia, and Mike Messenger. We talked about onboarding software, workflow, automation, marketing software, lots of stuff. There'll be a blog post on that coming out very soon.

Besides a shout out to Sheryl Hickerson and Darrell who run Females in Finance, it was a groovy stop of the conference. They had this sort of mini upshot, Females in Finance, which I'm a member of. And a shout out to Ruth Raftery, Tony Stoyer, Ryan Pinney, who I met there for the first time.

Now I'm going to try to do something here that no i's ever done before, is list off all the people that I know that I saw in person at the conference or either that I know and saw or that I met and saw. So permit's get through this real quick list. Adam Antoniades, Justin Boatman, Stephanie Bogan, Daniel Bolton, Jason Borgmann, Diana Cabrices, Justin Castelli, Marguerita Cheng, Jamie Cox, Charlotte Geletka, Ryan George, Patrick Hannon, Jeff Hoenle, Michael Kitces, Aaron Klein, David Knoch, Jason Lahita, Brian Leitner, Mike McDaniels, Brian McLaughlin, Cheryl Nash, Derek Notman, Nina O'neal, Penny Phillips, Kerry Pierce, Michael Pinsker, Ricky Redtail, Tyrone Ross, Beth Rubinoff, Abby Salameh, Johnny Sandquist, Lacey Shrum, Ryan Shanks, Gavin Spitzner, Tony Stich, Alison Susko, and terminal but not least, Doug Wardley. That's a long list, if I missed you, I apologize. I was racking my encephalon and brand sure I didn't miss anybody.

So there was some news at the conference and the story upwardly is i of the news stories that was announced Docupace + Riskalyze, but we're going to talk nigh some of the things Riskalyze announced at the conference, which I'm pretty excited almost. And this is all I recall, part and packet of them expanding the platform, continuing to expand, continuing to build out offer new functionality and really, the country and expand strategy of getting in through risk and then moving on to other things.

They've congenital a home office platform that they're actually moving into the enterprise space pretty well. One of the things they announced at the briefing was a new dashboard which I think was sorely missing crusade they had a lot of different tools and a lot of dissimilar options and software, especially the new Reg BI software. They take other compliance software also that is selling pretty well from what I hear. Simply this dashboard is supposed to bring it all together, at least from the screenshots we saw, it looks really skillful. And a lot of enterprise clients need that. A lot of our enterprise clients require these types of things, they're not even gonna bring on software if it doesn't accept a form of a dashboard or at least some sort of widgets that can plug into their other dashboards, operational tools.

This was announced at the Institutional Partners round table where I got to see the extent of their enterprise business organization. When you look at all the firms that were attending you really see how how well they're doing. Riskalyze also appear that they telephone call Discovery, which they're calling a quantitative engine to defined securities, which looks like basically a actually advanced screening tool. It's a keen idea, they're sort of following the Morningstar script. They built out of course their chance number, which is their proprietary algorithm to come up with that risk tolerance number. They also launched what they're calling the Riskalyze GPA, which is a portfolio analytics number. So one number to correspond your portfolio risk. And at present, since those are proprietary, they have built that into their screener, then now you lot can screen for those, those detail things, which no one else can practice.

Then by launching this, they're leveraging their proprietary analysis and analytics, similar to how Morningstar leverages their Star ratings and their ten-ray and their fashion boxes. Portfolios, so they've appear there was a lot of emphasis on speed, which says to me that they had a lot of problems with the slowness of the product which is not unexpected considering how fast they grew. Some people told me they went from 22,000 users to 35,000 users during the pandemic, which is a huge increase. And they saw some decreases in speed and response time. So information technology built out a new engine to run their portfolio analytics tools and they gave us a demo, of course it looks infinitely faster. They did a kind of fun thing where they showed, they've named the engines P6 and P7 and had one person running P6, a skillful friend, Mike Stern, who I left out of the list, sorry, Mike, Mike Stern was P6 running the one-time software then P7 was running next to him and you could see P7 came up right away and P6 took virtually 30 seconds to load a portfolio with 500 positions, so obviously much faster.

They're building out their stress testing tool, and that lends itself to their contest with Orion who now owns Hidden Levers. So Riskalyze's stress testing was a piffling weak in the by. They've added some tools, a lot of scenarios, historical information for new events that should help them going caput to caput with firms looking at Hidden Levers. And let'due south see, finally, they added some trading functionality to what they're calling Riskalyze trading, which I think used to be called Autopilot. Now information technology's called Riskalyze trading, they added an accounts dashboard. Again, I dear dashboards. Yous gotta have them. The more than visualizations nosotros can see across accounts, across unlike pieces of software is of import. They added tax optimization and tax loss harvesting, but another step in their method of building out, basically a total featured RIA platform, starting with chance, adding more than tools and features at present building out more and more. So the tax optimization was some other slice that was missing from their portfolio rebalancing and trading tools. They've likewise integrated with FIX Flyer, 1 of the industry'southward leading trade social club management systems that gives them a nice connectivity to FIX networks.

Overall, I like what they've announced, similar what risks causes washed equally they're expanding their tools slowly, methodically building out their technology. It seems like they're really taking aim at Morningstar Advisor Workstation users, which is by the fashion, 1 of the nearly pop pieces of software in our industry, according to Morningstar, they have over 185,000 users, which I can't confirm, just they are in every banker dealer I piece of work with. They may not necessarily have all those users agile every month, but they've got those licenses out there. It's a very popular tool. And looking at what Riskalyze has put together with the portfolio analytics, stress testing that their screening and other other tools, it looks similar they're looking to assemble that from the bottom upwardly Morningstar Advisor Workstation users and bring them over to the Riskalyze platform.

Docupace Acquires Client Information Gathering Software Provider PreciseFP

Back office efficiency has taken on renewed focus equally increased client demands and accompanying assets has spurred wealth direction firms to sign upward for new operational technology at a tape step. The trouble is connecting all this new engineering with the legacy systems that are already in place to road data between them, automate key processes, and ensure that all-time practices are followed.

One visitor that'south been providing back office operational software for over 20 years, is Docupace and in April, 2020 FTV took a majority stake in the company and named quondam first global president David Knoch as a new CEO. Since then in 1 acquisition, acquired compliance and reporting software from jaccomo, which I recollect fits nicely with their growing software suite, which includes document management, workflow automation, counselor transitions, and new business relationship opening. At present jaccomo was under the radar for virtually of the industry, only they quietly built some solid technology, especially around information cleansing and integration. Of course, compliance and surveillance. They also have advisor compensation software, which are crucial aspects for near firms, particularly larger banker dealers, and when the auditors come knocking, you want your data to be crystal clear, especially when compliance and surveillance.

Now at the Riskalyze briefing, Docupace announced another acquisition of PreciseFP, one of the leaders in customer information gathering software. And at that place were only two products on the Kitces Map and PreciseFP was founded in 2007. A lot their their primary software is sending out digital forms that are then self-directed customer information entry for clients and prospects. They have a whole load of templates, which they call fact-finders that you can apply for pb generation or gamble tolerance surveys, they even have them for a goals-based planning, IPS and others. Very nice template library that advisors can use to send out the self-directed surveys and self-directed data entry.

Now Docupace's market inquiry shows that PreciseFP user firms have 40% larger average account size and have grown their firm AUM at a 5% faster charge per unit on boilerplate than the overall RIA universal of by five years. And then good reason to acquire them. You can cheque out the demo, which you tin can come across on the PreciseFP site. I of the things I like most their financial fact-finder is already pre-integrated with some of the engineering that many informational firms use such as Redtail CRM, Wealthbox CRM, MoneyGuidePro, eMoney, Asset Map, etc. So things like goals, budgeting, as I mentioned before, IPS for the household structure, stop of year tax planning, lots of different templates already prebuilt, and pre-integrated they just be sent out to the client base or new clients or prospects and all that data is gathered and automatically exported into the correct applications.

Another matter I like almost PreciseFP equally a consultant is their integrations page. They've got a lot of integrations as we mentioned, simply the page provides a lot of details. Our research staff and our implementation staff love that MoneyGuidePro and eMoney are also firms that have these types of well-documented integration pages that show you what data is coming in, what information's going out at a pretty decent level so it's very helpful.

This is really continuing a long string of Yard&A transactions we've seen over the past 12 months, including what'south the FMG Suite buying TwentyOverTen, Seismic buying Grapevine6, which is a social media automation visitor, content company for advisors. Refinitiv bought ASI portfolio rebalancing software, private equity firm TCV bought WealthSimple, which is a Canadian robo advisor. Vanguard bought direct indexing from JustInvest. And JP Morgan went on a spending spree buying 55ip, which was a TIFIN portfolio visitor, which we're going to talk about them afterwards. They allow a $50 million circular for Aumni financial analytics tool for private market investments. Again, this is JP Morgan bought ESG direct indexing firm Open up Invest and finally another robo-advisor, Nutmeg based in London. So another acquisition, I'm sure we'll see more than. It'southward simply the beginning of the 4th quarter. I await a lot more than acquisitions to be announced this year.

Flourish Launches Crypto Product for RIAs

Next up on October news, our 3rd story is crypto, crypto news. Blockchain companies hitting $30 billion in full funding, which is a 44% year over yr increase, and it'south only the third quarter. So at that place's still a quarter left of new funding for blockchain companies. Some of them are coming into the wealth management space and this week Banking concern of America, the 2nd largest bank in the United states of america by assets launched a new analysis of the digital asset markets. The report stated that Bitcoin and crypto markets are but too big to ignore. Bitcoin is important, but the digital asset ecosystem is so much more, said the banks head of cryptocurrency and digital avails strategy. Another story, Grayscale CEO, all the firms products could convert to ETFs. Now Grayscale Bitcoin trust, Ethereum trust and others are the just manner that well-nigh US investors can purchase Bitcoin in their IRAs rather.

And they are working on getting them converted to ETFs if they tin can get approval from the SEC, which I've heard may not happen, simply they conspicuously seem optimistic about information technology. Now Grayscale Bitcoin trust is the largest digital currency asset manager with about $42 billion in AUM as of October 1st. So they're looking to get those converted over to an ETF.

Our other story on crypto is called Flourish Crypto, a new production launched by Flourish. Now Flourish's service proper noun is being launched a partnership with Paxos, the infrastructure provider that connects traditional payment services to cryptocurrency markets. And Paxos completed a $300 million funding round in April and also has deals with PayPal and interactive brokers. Ben Cruikshank, head of Flourish, said the move is a effect of rapidly growing demand by institutional investors and their clients for exposure to digital assets.

I'm not going to talk a lot nigh this because we're actually going to accept head of product for Flourish and Flourish crypto on the podcast. We merely recorded the episode yesterday or the other day, and it's going to drop I call back, at the end of this week or maybe side by side week. And so I'm not going to go too much into this, just to give you a quick overview, this product called as I said, Flourish Crypto volition allow is built on the Flourish platform, which is a running another production called Flourish cash. And that's in use past over 400 RIAs managing, I remember it's got a billion dollars on that platform. It's designed to help advisors and their clients earn a competitive interest rate on greenbacks while providing access to increased FDIC insurance coverage through their bank network. Any money to transfer it into Flourish cash is automatically deposited at select FDIC member banks, so it gets swept back and along. And then you e'er have insurance coverage and you're earning the highest possible interest charge per unit. That's what the software does, is it locates those banks and moves the money in between dissimilar accounts to keep your clients earning the highest interest charge per unit.

And then the Flourish crypto product will allow advisors secure and compliant access to cryptocurrency through a what they're calling a simple, easy to use platform complete with reporting and planning, integrations, trading, transfer, flexibility, and advisor specific compliance resources. Currently Bitcoin only, but they programme to accept Ethereum. Now one thing we do like near that, there's a maxim in the cryptocurrency globe called non your keys, not your crypto. Unless you own the individual keys that identify your cryptocurrency on the Bitcoin network, you don't really own it. It'southward beingness custodied by someone else. So you're trusting that other firm to exist rubber with your keys. But the fashion Flourish crypto is designed the actual investors withal ain their own keys, they could motility them away at whatever time.

This is compared to firms similar PayPal. For example, if you buy crypto on PayPal, y'all tin non move the crypto off of PayPal. You have to sell information technology, turn it dorsum into dollars, and then you lot tin can become buy somewhere else, but you lot can't simply transfer your Bitcoin away from PayPal, they're not allowing that. Merely with the Flourish greenbacks production, you lot all the same own your keys and clients can move information technology around, or the clients can motility it effectually as well. They securely embedding into the RIA ecosystem. They've announced four big integrations, eMoney Advisor, or Orrion Tamarac and Black Diamond. So three of the biggest RIA portfolio direction platforms, as well every bit 1 of the biggest financial planning softwares, eMoney Advisor. Merely these are but reporting integrations, there's no trading rebalancing yet that'south coming. Of course we want to see what these integrations wait like there will exist more than coming next week or the week subsequently when nosotros driblet the episode with the head of product for Flourish Cash. But I just wanted to requite you that overview, because I think information technology's a really interesting product. Yous can check them out at Flourish.com.

Envestnet Launches an Alternatives Commutation Powered past iCapital

According to data provider Statista, 81% of ultra high net worth clients hold alternative investments versus 85% who desire to invest in them in the hereafter, which is a four% gap. With very high net worth investors, it'south 55% currently hold versus 68% that want to hold in the future. So at that place'due south a 13% gap. And with loftier cyberspace worth investors, it'south 29% hold now, 46% want to agree in the future, a 17% gap. To try to fill these gaps is Envestnet partnering with UBS and iCapital on a platform called the Alternatives Exchange where high internet worth clients volition be able to browse, purchase, and sell private investments such as real estate, hedge funds and individual equity.

Now this exchange comes forth after three other exchanges have been launched by Envestnet. 1 is an insurance exchange, which is currently selling annuities and it'south partnering. They're partnering with FIDx on that. Envestnet launched the credit exchange, which is offering existent estate, residential real manor and unsecured lending products. They partnered with Counselor Credit Substitution. And the third exchange is the trust services commutation where they partner with a business firm called Trucendent. The trust services commutation provides a network of attorneys and trust administrators that work behind the scenes with advisors to handle trust account documentation, asset transfers, and regulatory compliance navigation. I expect at it as sort of an Angie's listing for manor planning, where information technology links advisors up with all the different key personnel and experts you need to handle circuitous estates.

So back to the alternatives commutation another swell idea from Envestnet y'all know, nosotros're seeing them as the largest provider of technology, especially in managed accounts, in the industry with the largest market share in broker dealers, banks, and loftier internet worth RIAs. On the enterprise side is through their ENV2 enterprise platform and the RIAs are through their Tamarac platform.

In one case you hit a certain level of market share, information technology's difficult to grow. Every extra betoken per centum of market share is harder and harder to add because you're squeezing your competitors downwards, and they'll be fighting harder and harder to retain that market share. And as well you're running out of clients who are your opportune, or your target market, and you're spreading out into firms that may be less optimal for you. So offering more than products that they can sell to their existing clients will increase their wallet share and help them grow equally a public company, their quarterly earnings reports, and they have to go along growing. And so these different exchanges volition allow them to button more and have more of a transactional business model through providing services.

Now they've got a methodology hither and a strategy, which is always partnering. They're not building annihilation themselves. They're always partnering with another house that's got the core engineering, which helps them get upwardly and running much quicker. They've got most of the software, the plumbing already built, specially around the annuities exchange with FIDx, they congenital all the plumbing and actually they handle the paper. All the insurance newspaper is handled by the FIDx desk. So that takes that off of Envestnet's plate, makes it much easier and the, the alternatives substitution is going to work the same way I believe, using iCapital's turnkey network solution and UBS, and UBS says they're seeking to aggrandize access to these assets. Typically offered to the wealthiest investors and push it down to the lower net worth tiers. Then Envestnet will provide access to a select grouping of alternative investments provided by UBS and iCapital network through the new alternatives exchange.

So here'southward a quote, if yous're a wealthy person with $v million, you lot couldn't previously think of investing in a private equity fund or a hedge fund. Actually that's the chairman and CEO of iCapital. Merely now through the low minimums afforded by this platform, you're able to put half a one thousand thousand or 10% of your portfolio to piece of work across many dissimilar investments to achieve diversification, which will exist nifty.

Morningstar came out with a report merely final month, or in August chosen The Role of Technology and Managing Alternative Investments. A couple key points from their survey, 54% of respondents spend at least 10 hours a week managing documents for culling investments. Firms with AUM of a billion or more than are probable to have 10 or more than employees devoted to customer reporting and or managing culling investment workflows and 65% of the respondents to this Morningstar survey plan to move away from manual processes to solve alternative investment data challenges.

The reason why I wanted to read those statistics is another key part of this alternative exchange is software that'due south going to automate processes to more quickly compile and analyze documents needed to list such investments. And with all these liquid investments, at that place's always lots of documentation that comes along, lots of complex contracts and other information that you need high price lawyers and accountants to review. This exchange is coming with this AI tool that's going to process these documents and build them out for you and salve a lot of fourth dimension. They also take increased scale. If you're pushing out these products to more clients, more wealth tiers with lower minimums, you need to calibration, you can't put the aforementioned sort of white glove service for all these smaller clients. You need to calibration it. So these tools claim they're going to automate the procedure and automate the processing of the documents for these alternative investments.

And this sounds to me a lot like Vanilla, the Steve Lockshin production, which is for estate planning, but a big portion of Vanilla'southward functionality is cranking out the documents, reviewing the documents, processing them, making certain all the data is correct across all these, it could be dozens and dozens of documents. That's a big part of Vanilla and their value add together. So I see the alternative substitution for Envestnet doing something like. This also is sort of like what FP Alpha is doing for trust and other documents, once more, on a much, much lower cease. Holistiplan, some other company that'southward reviewing documents, just they're just reviewing 1040s and other tax documents.

But all these companies are sort of seeing this gap in the market where instead of having manually people, whether they're lawyers or state attorneys or CPAs manually become through these documents, filling them out, making sure that all the paperwork is correct, all the I's are dotted and the T's are crossed, the software is going to practice it. Scan it all in, uses OCR, making certain everything'southward matching the client names matc everything spelled correctly, knowing which types of investments require which forms, which accept to be signed and what social club, and even sending them out to be signed through DocuSign and other tools.

The advisor community has rapidly adopted culling investments in contempo years, due to shrinking returns in traditional asset classes, pressure level to differentiate and increase client demand tools like the Envestnet culling commutation should aid their clients offer these investments to a wider range of wealth tiers with lower minimums, but without the pain points that are normally accompany these illiquid and complex securities.

Advyzon Adds FIDx Integration for Managing Held Away Assets

We're running out of fourth dimension on the news. I'm going to hitting a couple of other stories, squeeze them in here before I get to the updates and the advisor FinTech map. So just two more stories. Ane is Advyzon adds FeeX integration. And this story comes from wealthmanagement.com and Sam Steinberger. In my opinion, data aggregation has kind of stagnated. Nosotros haven't really seen whatsoever new technology or new characteristic functionality from data aggregation in while, it'due south the same vendors providing the same held away asset services, merely FeeX seems to have a dissimilar take on things. In the past, any held abroad avails were view simply. And there were advisors, we did see a trend of advisors charging for managing held away avails, only the management was e'er at arms length. It was always delivered to the client verbally or through email. And the customer was responsible for making the changes in the held mode accounts, whether they were a 401k account or other type of retirement vehicle.

But that's all changing with FeeX. We like this platform. Nosotros've seen demos of it and spoken to the executive team a number of times, what they're doing with this business relationship assemblage and trading platform is enabling advisors to straight manage these held abroad retirement or health savings or higher savings accounts. What FeeX has done is built out pipes to a lot of the major providers of these types of accounts, enabling them to directly send trades to them so that the advisors can basically utilize FeeX'south order management system in effect to link accounts on the platform. It acts as what they call a secure data bridge with an audit trail. And then all the trades that go in are tracked and they can see exactly when they were done, they laissez passer the data back and forth from the counselor to the external custodians and other other platforms. And when the counselor takes action then gets transmitted.

So advise on is the latest i to partner with FeeX previous partners were Orion Advisor was probably the biggest proper noun we've heard partnering with FeeX. On Advyzon's pilot, hey have between 30 and 40 RIA firms partnering and they saw their services were, were growing and they were using it differently than just another aggregation tool and Advyzon calls at the game changer, and I would hold. Because different simple account assemblage FeeX offers the advisor, the power to actually manage these accounts. Some of the things that Advyzon is doing they've integrated with Onramp Invest to bring crypto holdings visibility to advisors. They've launched a prospect portal and they're starting to develop their own portfolio rebalancing software all within the last 12 months. Now I'm interested in that concluding little slice of news, considering that might change where we put Advyzon, on the Kitces FinTech advice, tech advisor techniques that Michael I work on correct now, nosotros have Adyzon in two categories, one is CRM because that'south really why most firms buy them is for the CRM. And they also have performance reporting. So they're in 2 categories. If they were to finish building out their portfolio rebalancing tool and have trading, and then we probably would consolidate. We'd movement them off of CRM and functioning reporting and put them into all in one. That's just a heads up in that location of what we would probably do when we hear nigh their rebalancing tools.

Morningstar Partnering with TIFIN's Magnifi on Directly Indexing

Next up again in the quick hitter stories here, TIFIN'S Maginifi gets Morningstar research for direct indexing. This story is besides from wealth direction.com and Davis Janesky. TIFIN Grouping appear that their Magnifi subsidiary volition now begin offering portfolios of innovation stocks to end investors based on indexes designed by Morningstar. Information technology'south been a big twelvemonth for TIFIN Grouping, they've fabricated two acquisitions, i of Totem Risk, and ane of myFinancialAnswers in March. They announced the $22 1000000 Series B round in April, and they also added Cathie Wood, Head of ARK Investment to their board dorsum in July.

Now through this new offering end investors can admission what they're calling fanatic bundles of equities without ETF or mutual fund wrappers directly through Magnifi. It besides offers straight indexing solutions for individuals. To me, it sounds like Motif investing the visitor, that was one of the beginning direct indexing providers, which somewhen went out of business. And I think their assets were bought by Schwab. Oh, sorry. The accounts were transferred to Page Institutional, which was caused past Goldman. And then the engineering was purchased by Schwab, just the TIFIN people say, oh, no, information technology's not like Motif because we're using institutional portfolios. It'southward not peer portfolios created past regular investors.

So they're really trying to target cease investors, which seems like a big uphill boxing for Magnifi. Magnifi isn't really well known in the industry. They really commencement trying to become traction. They've been pivoting a bit across some dissimilar ideas. And if they're moving into direct indexing for stop investors or the fanatic investing partnered with direct indexing for end investors, in that location'southward a lot of competition in that space. You've got the biggest firms in the industry, the biggest nugget managers, BlackRock, Fidelity, JP Morgan, even E-Merchandise has fanatic investing options. And then I don't know how Magnifi is going to practice it. Although they've got some pretty smart people in that location, they've managed again, managed to attract Cathie Wood from ARK Investment Direction, who's very well respected. They've too got Tricia Rothschild, a former Head of Product at Morningstar, the erstwhile President of APEX Clearing, who is also, I believe, on the board of Magnifi. Probably couldn't hurt with their partnership with Morningstar on these managed portfolios.

These managed portfolios at Magnifi were designed curated and the stock option has been fabricated by industry experts, not peer curated or picked by amateurs. So this is part of their overall view of democratizing intelligence and not merely products. Yep, I'one thousand not really sure I understand that statement at that place. There's lots of firms offering curated investments and curated portfolios. That'south not new. I've likewise worked through their product offering. At that place's lots of sponsored offerings when you get through their platform, it asks a lot of questions and claims to evangelize a personalized investment portfolio. Doesn't look very personalized to me. It looks actually like filling out a bunch of sponsored investments, sponsored ETFs and things. Now they've made it clear that this is only the outset partnership into fanatic investing. And while the first offer was with Morningstar, they have subsequent offerings that are planned with those straight asset managers themselves, maybe with ARK now that Cathie Forest's on board or with other ones that are on the platform, y'all can check them out at Magnifi.com

Kitces Advisor FinTech Map (Oct)

And finally wrapping up the news for Oct, the Kitces Counselor FinTech Map. This is something I work on with Michael Kitces every month, you lot can observe information technology at Kitces.com. The Oct version of the advisortech solutions map is now available, and I desire to talk about some of the changes that were made that we made this month. So Michael and I have a zoom call every month, and nosotros go through the map and talk about what's going to exist changing. Whether it's mergers and acquisitions or new companies that are starting, or just moving effectually the categories based on new features and functionality or things that are changing. The industry's always irresolute, always new stuff coming in, my e-mail, my inbox is flooded, Michael'southward is flooded with requests from vendors. Nosotros attempt to keep upward every bit all-time we can.

This month, so the biggest changes were in the portfolio management category and the all in one category. What we did was we moved Black Diamond, Intelliflo, InvestCloud, MyVest from portfolio management into all in i. The reason we did that was we're defining the all in one category as having portfolio direction, which ways y'all have not just portfolio management, portfolio accounting and portfolio rebalancing. So you've got to take rebalancing to be in the portfolio management category, but again, to all in one, you also have to have operation reporting. That'due south what we agreed on. So all the firms, I simply mentioned, Black Diamond Intelliflo, InvestCloud, and MyVest all have performance reporting capabilities. So they should go into the all-in-1 platform category.

And then another alter we made this month was Riskalyze was moved from the rebalance just category into portfolio management. Since they've expanded Autopilot at present called Riskalyze trading tool, to be more than merely rebalancing, to also include more than portfolio management features that is now moved into the portfolio management category. It's also got trading with their integration with FIX Flyer. Just so you know, final month, which was September, we added CircleBlack into portfolio direction every bit well since they've got some portfolio direction functionality. CircleBlack is also in client portal, as y'all will discover. And the final changes to the FinTech map were around the custodial platform category, which is right underneath all in one, sort of to the left of the middle there. We added Schwab, I don't know how we missed them, but now Schwab is under custodial platforms. And we besides added Shareholders' Services Group, SSG right in the centre at that place too, since they're another custodial platform. And nosotros besides moved Altruist away from all-in-one dorsum into portfolio management.

The reason we did that was they've announced they're multi custodial. Then since they're non a purely a single custody platform, like the other custodian platforms in the custodial platform category, they now appear to be more than like the multi custodial portfolio management tools, even though I'm sure they're heavily relying on Apex as a custodian, that's their preferred custody partner. Just since technically they're multicultural now nosotros moved them simply to the generic portfolio management category.

There y'all go. That's the inside baseball game on the advisor tech solutions map. You have any questions, please shoot me an email or you lot tin can shoot Michael email although I'k much more probable to respond he's way busier than I am. We'll be happy to become back to yous with any questions or concerns y'all have about internet. And that's a wrap for this calendar month news. Please get to EzraGroupLLC.com and sign upward for our newsletter. Every month y'all'll receive ane electronic mail with lots of information, news updates and reviews and trends across the industry. And you will not be disappointed. Cheers for listening. And I'll talk to everyone again. Next time.