The Latest In Financial #AdvisorTech (April 2022)

The Latest In Financial #AdvisorTech (April 2022)

Welcome to the April 2022 issue of the Latest News in Financial #AdvisorTech – 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!

This month’s edition kicks off with the big news that Wealthbox has raised a new $31M Series B round to capitalize its efforts in moving further ‘upmarket’ to challenge Redtail and especially Salesforce’s hold on the largest advisor enterprises. (As advisor adoption of CRM systems is now so high, it’s a virtual certainty that current CRM systems can only grow by capturing market share away from competitors!)

From the broader industry perspective, though, the real shift that’s underway is the transition of advisor CRM systems from their roots as the tool that captures client contact information and communication history, into one that drives the advisory firm’s key workflows. Because as advisory firms provide increasingly broad and holistic advice to clients, it’s no longer feasible for the firm to run ‘just’ from its RIA custodian or broker-dealer investment platform as the hub; instead, the advisor CRM system is becoming the hub, around which the rest of the firm’s systems and processes are built. Which is expanding the opportunity set for advisor CRM.

From there, the latest highlights also feature a number of other interesting advisor technology announcements, including:

  • Summit Wealth Systems raises a $20M Series A round, as its founder Reed Colley (who previously founded Black Diamond) aims to build the next generation of performance reporting for clients
  • Advyzon launches a new TAMP offering for the advisor users of its portfolio management + CRM system

Read the analysis about these announcements in this month’s column, and a discussion of more trends in advisor technology, including:

  • Goldman Sachs reveals that it is still not quite ready to launch its competing RIA custodian, nearly 2 years after it acquired Folio Institutional to speed up the process, highlighting just how hard it really is to compete in the RIA custodial business
  • Savvy Wealth raises $7.3M to fund its own tech-based advisory firm (in the hopes of out-competing advisory firms that are struggling to build their own tech?)
  • IndyFin raises $2.2M of capital to become the next ‘Yelp-for-advisors’ platform as the SEC greenlights client testimonials… but raising the question of whether Yelp itself may still be best positioned to be the Yelp for advisors?

In the meantime, we’ve also launched a beta version of our new Kitces AdvisorTech Directory, to make it even easier for financial advisors to look through the available advisor technology options to choose what’s right for them!

And be certain to read to the end, where we have provided an update to our popular “Financial AdvisorTech Solutions Map” as well!

*And for #AdvisorTech companies who want to submit their tech announcements for consideration in future issues, please submit to [email protected]!

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