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September was a busy month with many notable govt transitions, firm improvements and M&A actions making trade headlines. At F2 Technique we at all times take into consideration what all of it means for advisors and naturally, their expertise 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 steer its efforts, it’s pulled two executives from one among its largest opponents 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 immediately?
The headline right here is “nothing broke.” Whereas many people had been taking within the final moments of summer season, Schwab was shifting 7,000 advisor companies, 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 expertise groups ought to get lots of credit score for this spectacular effort.
All of us not too long ago discovered that Joe Duran’s new firm will take minority stakes in RIAs and assist them change into nationwide, scaled platforms. From a wealthtech perspective that is reasonably attention-grabbing, as a result of historically, minority funding is money solely. We hope this shall be completely different, and there will be money in addition to enterprise mannequin operational effectivity and expertise effectivity. It could be good to see them be a capital accomplice plus insights to assist RIAs construct higher mousetraps.
CAIS will lead the democratization of different investments to the mass prosperous. It is going to be laborious due to the variety of touchpoints, complexities and danger, however it’s a particular want. Corporations within the unbiased channels have wanted and wished one thing to place them on par with their wirehouse opponents and bespoke fancy RIAs for some time, and this shall be prone to be very profitable due to the demand. This technique fills in that clean within the market immediately.
Avantax (previously Blucora), a tax-focused wealth administration agency shall be taken personal in an all-cash sale to Cetera Holdings. The deal ought to shut by the tip of the yr. This deal is a masterstroke. From a expertise shopper expertise standpoint, bringing taxes and wealth administration recommendation collectively, we predict, represents a
potential for a really sticky relationship with purchasers 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 large headlines in November.
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