Welcome to the February issue of the latest news in Financial Advisor #FinTech – where we look at the big news, announcements, and underlying trends and developments that are emerging in the world of technology solutions for financial advisors and wealth management!
This month’s edition kicks off with a look at the emerging fight over consumer financial data, as J.P. Morgan and Wells Fargo announce a deal with Intuit (Mint.com) to facilitate direct data feeds through an API that will reduce the bank’s server loads and enhance security over clients entering passwords into third-party applications, and former Intuit CEO Bill Harris calls the partnership “baloney” and suggests the big banks are simply trying to force data aggregations to rely on a bank-provided authorization token that allows the banks to control the flow of data and potentially even force third parties to pay for it. In the meantime, President Trump’s Executive Order to begin dismantling Dodd-Frank threatens the not-well-known “Section 1033” that ensures consumers retain rights to their financial data, raising the question of whether banks will soon become even more restrictive against account aggregation solutions… and in response, the tech companies are now forming a new Consumer Financial Data Rights industry group to lobby for consumers’ rights to their financial data (and the right of FinTech providers to collect it for them).
From there, the latest highlights also include:
- TD Ameritrade launches a new iRebal Model Portfolio Marketplace that could become a major TAMP disruptor.
- Betterment raises fees by 67% on its most affluent clients, and pivots to offering human financial advisors.
- Wealthfront tries to expand from being “just” a robo-advisor to a full-fledged robo-planner, and in the process may show up the shortcomings of today’s financial planning software providers.
- Starburst Labs, maker of Wealthbox CRM, raises a $6.25M Series A round.
- Grendel CRM makes a bid to become a central investment advisor dashboard with a deep TD Ameritrade Veo integration.
- RightCapital financial planning software startup lands its first enterprise deal.
You can view analysis of these announcements, and more trends in advisor technology, in this month’s column, including new integrations from Tamarac, a new Addepar partnership with Morgan Stanley, the SEC adding “electronic investment advice” (of both the “robo” and “digital” varieties) to its exam priorities for 2017, the launch of a new $50M Northwestern Mutual FinTech Venture fund, and a new tech tool to facilitate better client data gathering meetings called Asset Map.
I hope you’re continuing to find this new column on financial advisor technology to be helpful! Please share your comments at the end and let me know what you think!
*And for #AdvisorTech companies who want to submit their tech announcements for consideration in future issues, please submit to TechNews@kitces.com!