Financial planning technology typically isn’t the most exciting market, but so much has changed since this summer that intrigue is in the air.
Various companies are pivoting when it comes to products and strategies, they are challenging their own status quos and shaking up what had been a relatively static landscape.
If you’ve been following along, you know that there are four primary events driving speculation and uncertainty right now, and they are:
- Moneytree releasing an ambitious, game-changing new platform that represents a direct threat to the old guard.
- Envestnet, the maker of MoneyGuide, going private.
- The Orion product separation.
- Advyzon and Fidelity form a new partnership.
As the industry landscape evolves, it’s critical for advisors to understand the potential effects and adapt their strategies accordingly. Let’s take a deeper look at what’s going on and what it could mean.
Moneytree takes advising to the next level
Moneytree this summer launched a new financial planning solution that empowers advisors to capitalize on changing investor expectations and grow their business.
Recent research has shown that today’s clients care as much about their relationship with their advisors as they do about their portfolio performance. They value trust and understanding, and they want more consistent and personalized engagement.
With a focus on accuracy, comprehensiveness, and transparency, we built this platform based completely on what advisors need for their business instead of what Moneytree needs for our business. Because we know that putting you first is the best long-term strategy for us.
In fact, long-term success for all of us depends on rethinking how we interact with clients and prospects. With this new solution, you have the tools you need to both cultivate more client relationships and develop deeper ones.
We plan on taking financial planning by storm — with an advisor-first game plan.
Envestnet goes private
In July, Envestnet announced it had reached a $4.5 billion agreement with Bain Capital to go private. Other minority investors include Reverence Capital, BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Investors.
It’s going to take some time for this deal to shake out before we really know what it means. But it’s safe to say that Bain didn’t buy Envestnet with plans to continue business as usual.
For better or for worse, new investors bring new ideas and new expectations.
Envestnet’s decision to go private could lead to changes in its product roadmap and focus. This could impact the availability and pricing of its services for financial advisors.
Orion unbundles
Orion is a wealth management platform provider that had been bundling solutions into a fairly comprehensive wealth tech stack.
But in June, they announced that they were unbundling their solutions, prioritizing “a la carte” sales for everything from compliance software to risk intelligence software to a portfolio rebalancing tool and more.
This move challenges the prevailing idea that an all-in-one platform is better, because it’s more efficient and more cost effective.
Whether this move is about what’s best for the advisor or about what’s best for Orion remains unclear.
The separation of Orion’s products might result in changes in pricing, user experience and functionality, licensing terms, and integration capabilities.
Advyzon, Fidelity join forces
Speaking of bundles: In August, Fidelity Investments announced it was partnering with Advyzon to create an eMoney and Advyzon bundle, with a focus on marketing the collaboration as a low-cost solution for small RIAs.
From a business perspective, this is an interesting partnership. Fidelity is a giant player, especially compared to Advyzon, and has largely ignored the small RIA market until now.
At a high level, what we have are turnkey asset management programs (TAMPs) trying to shift to an all-in-one model and All-In-Ones trying to play more like a TAMP. We don’t know how this will play out, but the software that is most focused on the true needs of the advisor will gain the competitive advantage
Strategies for advisors in this changing marketplace
Navigating the evolving software landscape, maintaining the integrity of your tech stack, and continuing to run your business the way you want to run it might become challenging if you are affected by some of these changes.
Fortunately, there are ways you can mitigate risk moving forward.
- Evaluate alternatives: Explore other fintech providers that offer similar functionalities to your current tools.
- Negotiate contracts: Review and renegotiate contracts to ensure favorable terms and pricing.
- Stay informed: Keep up-to-date with industry news and trends to anticipate changes and make informed decisions.
- Prioritize client experience: Focus on delivering exceptional client service to differentiate yourself in a competitive market so that regardless of the tech stack, you know your clients are getting the best experience.
The Importance of Client Engagement
Regardless of the changes in the fintech landscape, maintaining strong client relationships remains paramount for financial advisors. By providing personalized advice, utilizing technology effectively, and prioritizing client needs, advisors can position themselves for long-term success.
This is where the new Moneytree financial planning platform shines. Because while technology may change, the need for relationships, connection, and understanding is as old as mankind.
No matter what happens in the larger planning landscape, with Moneytree you’ll always have the modern tools you need to engage clients at a very personal level.
