Welcome to the November 2023 difficulty of the Newest Information in Monetary #AdvisorTech – the place we have a look at the large information, bulletins, and underlying developments and developments which might be rising on this planet of expertise options for monetary advisors!
This month’s version kicks off with the information that Observe Intel has launched a brand new “progress platform” centered round quantifying the standard of an advisor’s shopper relationships with an all-in “Relationship High quality Index” (RQI) – which whereas probably precious in serving to advisors perceive and enhance their shopper expertise (and subsequently enhance shopper retention and increase the lifetime worth of every shopper), additionally raises questions on whether or not advisors might be prepared to spend money on instruments to enhance their shopper expertise given their already-high common shopper retention charges, in addition to what actually is the ‘finest’ metric for measuring satisfaction within the first place, since different platforms additionally purport to quantify buyer satisfaction (a few of that are notably less expensive than Observe Intel’s suite of follow administration instruments).
From there, the most recent highlights additionally function quite a few different fascinating advisor expertise bulletins, together with:
- FinanceHQ has launched as a brand new digital lead era platform for monetary advisors, which takes a extra niche-focused strategy to matching potential shoppers with advisors – representing a wager that capturing prospects in search of assist for particular issues (whom it might probably then consult with an advisor specializing in that drawback) will cut back the prices of bringing on new shoppers and assist it develop and scale amongst a crowded marketplace for lead era companies
- Know-how-focused RIA startup Farther has introduced a $31 million Collection B funding spherical at a whopping $131 million valuation – which whereas reflective of its speedy progress in property and income in recent times, additionally raises questions on whether or not its revolutionary expertise providing will actually create sufficient worth to satisfy its traders’ expectations, or if it might want to as an alternative concentrate on merely bringing in additional advisors to justify its valuation
- Constancy has stopped giving ‘screen-scraping’ information aggregators entry to its shopper info, requiring them as an alternative to undergo its sanctioned direct information feed – which, whereas performed within the identify of making certain extra steady information connections and higher account safety, additionally highlights the enterprise alternative for information platforms and establishments that personal and supply entry to shopper information
Learn the evaluation about these bulletins on this month’s column, and a dialogue of extra developments in advisor expertise, together with:
- 2 new AI-driven compliance expertise options, Avery and Hadrius, have launched – which, on the one hand may characterize a major step ahead in automating and streamlining the time-consuming, repeatable processes of following compliance procedures; however on the opposite, raises questions on whether or not AI expertise itself is basically prepared but for the extremely technical, low-margin-for-error area of compliance
- Morgan Stanley has launched a brand new AI instrument for its 16,000 wealth administration advisors, which notably does not give monetary recommendation – however does create the potential to streamline advisor processes from funding analysis to assembly follow-ups and even probably producing potential planning concepts.
And make sure to learn to the tip, the place we now have supplied an replace to our well-liked “Monetary AdvisorTech Options Map” (and in addition added the adjustments to our AdvisorTech Listing) as nicely!
*And for #AdvisorTech corporations who wish to submit their tech bulletins for consideration in future points, please undergo TechNews@kitces.com!
