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[VIDEO] Competing Against “Robo Advisors:” Delivering Advice in a New World from T3 2012

Posted on February 22, 2012 by in Conferences, Practice Management

Watch the session from T3 2012 titled Competing Against Robo Advisors to understand how your business must change in the face of disruptive, well-funded startups.

On Saturday, February 18 at the Technology Tools for Today (T3) conference in Dallas, TX, I moderated a panel discussion featuring John Prendergast, Co-founder and CEO of Blueleaf, and Alex Murguia, Co-founder of inStream. The session was titled Competing Against Robo Advisors: Delivering Advice in a New World, which addressed the rising trend of online startups who are launching low-cost financial advice platforms.

Companies like Personal Capital, Wealthfront, and LearnVest are encroaching on the independent financial adviser’s value proposition, and are leveraging their internal talent and well-funded venture capital to disrupt this industry.

I feel that the topic deserves attention from advisers, particularly for those who actively seek to attract wealth accumulators in their 30s and 40s. John sent me a text an hour before our session asking if I could film it to share with you. I did, and uploaded the session in two parts to YouTube so you can watch it.

Here is Part 1:

And here is Part 2:

Envestnet to buy Tamarac for $54 million in cash

Posted on February 16, 2012 by in Portfolio Management Software, Software

Hot off the wires this morning (and perhaps coincidentally timed with this week’s T3 conference?), Envestnet announced it will buy Tamarac, Inc., the Seattle-based provider of integrated wealth management software for RIAs, for $54 million in cash.

Click here to view the press release on TheStreet.com

In a statement, Tamarac CEO Stuart DePina said, “We are excited to build on the momentum Tamarac has generated with independent RIA’s seeking to streamline their operations through integrated technology and outsourced services. Now that we can leverage Envestnet’s solutions, Tamarac will accelerate many aspects of our strategic initiatives while allowing us to focus on our client’s needs.”

I’m attending the T3 conference today through Saturday, and have some time blocked off to interview Brandon Rembe, CTO of Tamarac this Friday. I’ll be sure to ask what this means for Tamarac’s clients and post the video shortly thereafter (so you might want to subscribe to the FPPad YouTube channel while you’re there).

FPPad Bits and Bytes for February 10

Posted on February 10, 2012 by in Bits & Bytes

Relatively speaking, it’s been a quiet week. It’s my first full week home in Dallas with no traveling or conference appearances, but I’ve had a big backlog of work and writing waiting for me. Much of what I did this week was edit video interviews recorded at last week’s TD Ameritrade Institutional conference. Be sure to check those out using the link below.

First up in this week’s Bits and Bytes is my February column for Morningstar Advisor, Embracing the Cloud. Think you can’t ditch the servers that run all your in-house software? Think again.

Next is coverage from last weeks’ TD Ameritrade Institutional 2012 National Conference:

View my three-part Video Spotlight series, filmed on location at the conference, then review my thoughts on electronic signature options being rolled out to advisers.

TD Ameritrade brings some Florida heat to the RIA winter from RIABiz.com

[Guest columnist Tim Welsh does a good job capturing the major themes at the custodian’s annual conference.] Building on the growing momentum of its RIA custody business, TD impressed the crowd with high-profile keynote speakers, a technology showcase, practice management gurus, elegant parties and a legendary 1970’s-era disco band.

Tech Execs Look to the Future: TD Ameritrade Conference from AdvisorOne.com

[Some of the big players in technology participated in a good panel discussion on how today’s innovations are laying the framework for exciting functionality in the future. A quick read with great quotes from the panelists.] A gathering of executives from up-and-coming, as well as established, technology companies sat with AdvisorOne at the TD Ameritrade conference in Orlando Friday morning for a discussion of the state of advisor technology, integration and where the innovation is likely headed next.

Finally, this week’s stories of interest:

Data Standards Elusive from InvestmentNews.com

[Those seeking background on common data standards and integration need only look to the mobile phone industry to witness a scrambled approach to common standards. There’s iOS, Android, WebOS, Symbian, Windows Mobile, and on and on. So really, why should the financial services industry be at all interested in developing a common standard? My take: the winner will be the one with the first mover advantage. Today, that nod goes to TD Ameritrade Institutional’s Veo Open Access initiative.] Getting a fragmented industry to agree on a common framework may be impossible.

New version of Laser App hits industry from InvestmentNews.com

[Generating paperwork is one of those seemingly unavoidable consequences of running a financial advisory business. But with more electronic form automation and e-signature acceptance by custodians, paperwork might soon go the way of the dinosaur.] One of the great quests in the advisory industry is the desire for straight through processing of forms, preferably digital forms that make printed paperwork a thing of the past.

 

Video Spotlight: TD Ameritrade Institutional’s Chris Valleley discusses vendor participation and best practices in Veo® Open Access

Posted on February 9, 2012 by in Video Spotlight

Here’s the third and final pilot in my Video Spotlight series from the TD Ameritrade Institutional 2012 National Conference. This clip features Chris Valleley, Senior Manager of Technology Product Management and his thoughts on vendor participation in Veo® Open Access and how the Technology Product Management team shares best practices with all integration partners.

Special thanks to Chris Valleley, TD Ameritrade Institutional, Marriott World Center Orlando, and FishDawg Productions.

Video Spotlight: TD Ameritrade Institutional’s Jon Patullo discusses electronic signature and future enhancements of Veo® Open Access

Posted on February 8, 2012 by in Video Spotlight

Here’s the second pilot in my Video Spotlight series featuring Jon Patullo, Managing Director of Technology Product Management for TD Ameritrade Institutional.

Special thanks to Jon Patullo, TD Ameritrade Institutional, Marriott World Center Orlando, and FishDawg Productions.

Video Spotlight: Orion CEO discusses Veo® integration at the TD Ameritrade Institutional 2012 National Conference

Posted on February 7, 2012 by in Video Spotlight

I’m launching a new series on FPPad this year called Video Spotlight. Here’s the first in what I hope will be a growing segment of updates to the blog. Enjoy!

Special thanks to Eric Clarke, TD Ameritrade Institutional, Marriott World Center Orlando, and FishDawg Productions.

FPPad Bits and Bytes for February 3

Posted on February 3, 2012 by in Bits & Bytes

Today is the final day of the TD Ameritrade Institutional 2012 National Conference. I’m appearing on an all-star technology panel along with Davis Janowski of InvestmentNews, Joel Bruckenstein, Publisher of Technology Tools for Today, and Andy Gluck, President & Editor of Advisors4Advisors.

Follow the #TDAI2012 hashtag on Twitter for real-time conference updates. Will there be some fireworks emanating from this event? We’ll see.

But in the meantime, enjoy this week’s best technology stories from around the financial planning industry:

Laserfiche user conference draws a big crowd that wants to toss filing cabinets from RIABiz.com

[You saw my updates from the conference last week, so add this review from Nexus Strategy’s Tim Welsh to round out the perspective of Laserfiche’s annual user conference.] Showing off the user-base muscle of the firm’s 30,000 customers, the Laserfiche Empower 2012 conference convened at the Anaheim (Calif.) Marriott over three days, Jan. 25 to Jan. 27.

inStream, in the Moment from Financial-Planning.com

[The secret’s out on one new tool that has the potential to change most financial planners’ value proposition. Instead of reacting to the planning needs and questions of clients, startup inStream Solutions offers ways planners can be proactive with clients.] While it’s early in the game, inStream Solutions might be next in this line of financial planning software innovators. It’s a free, goal- and cloud-based planning solution for financial professionals. That’s right, free.

The one hot topic in TD Ameritrade Institutional 2012 pre-conference sessions

Posted on February 1, 2012 by in General

Leading up to its 2012 National Conference, TD Ameritrade Institutional held a full day of pre-conference sessions today for the benefit of its advisors.

George Tamer, Director Strategic Relationships and Consulting, welcomed 683 attendees to the pre-conference sessions, representing an uptick in attendance of 88% over the previous year.

Pre-conference tracks were split across four areas:

  • Learn How to Market Your Fiduciary Advantage
  • 401(k) Fundamentals
  • Options Market Center Workshop
  • Capturing Investment Opportunities
  • Boost Efficiency with Technology

I attended the Technology tracks, and throughout the day, the hottest topic that came up was the DocuSign integration with Veo Open Access.

Supporting E-Signature

The DocuSign integration with Veo Open Access allows a nearly seamless workflow from form creation, client signature, to back office processing. It sounds too good to be true almost, and advisors are rightly concerned about end-client experience. Clients will be faced with authentication questions from DocuSign, possibly failing to authenticate, figuring out how to get their own copies of signed documents, making sure they use the right Internet browser, and so on.

To its credit, TD Ameritrade Institutional’s team, including Andy Wang, Senior Manager of Product Management, was very proactive on addressing advisor concern. The custodian is not simply pushing out the new integration without any testing. It’s clear that they’ve listened to adviser feedback.

For example, Wang said that the DocuSign integration allows customization of client authentication questions so they’re not impossible for most clients to use. Wang cited an address of a house a client owned in the 1970s as one of the more challenging questions the default system might generate. The customized questions, according to Wang, are much more relevant, yet they still fall under the strict RSA guidelines for enforcing accurate authentication.

Electronic signature workflow presents a great opportunity for efficiency in an adviser’s firm, particularly because once documents are electronically signed, they are automatically routed to the TD Ameritrade back office servicing team. This largely removes advisers from the follow up chain, where they used to be required to gather all the signed paperwork, FedEx it to the custodian, and then call the back office to confirm receipt. That’s antiquated process is history.

Tomorrow, the main event kicks off with business updates from Tom Bradley and Fred Tomczyk, followed by keynote sessions from Robert M. Gates, 22nd U.S. Secretary of Defense and Sheila Bair, 19th Chairman of the FDIC.

Look for more updates soon!

Robo advisers are here: What you need to do to adapt

Posted on January 31, 2012 by in Conferences, Practice Management

Robo Advisor

January 2015: Note that this was the first instance of “robo adviser” I used on FPPad to refer to the automated advice investment providers emerging in 2011 and early 2012, but it’s not the first utterance of the term according to this Business Insider article.

If you don’t know already, your business is being targeted by online, low-cost financial advice and investment platforms.

Witness the advent of startups and applications like Personal Capital, Wealthfront, LearnVest, and more last year. Some advisers may have dismissed these platforms as “robo advisers,” which will never match the personal attention and relationship a human being can deliver.

While a compelling proposition, I don’t think that dismissing the competition is a wise strategy for advisers. I’m not alone in this line of thinking. Just this week, Alex Murguia, managing principal of McLean Asset Management and CEO and founder of inStream Solutions, said pretty much the same thing.

In an interview for Financial-Planning.com, Murguia had this to say:

While they [online advice platforms] are not currently a direct threat, they are becoming more popular and have significant financial backing. In addition, many advisors are doing themselves a disservice by just providing “set it and forget it” model portfolios. Could you blame consumers for not fully understanding the true value of independent financial advice, in this context?

Competing Against Robo-Advisers

So you want to adapt and separate yourself from the robo adviser competition. Where to begin?

Here is a session from the 2012 Technology Tools for Today conference (T3) held at the Hilton Anatole in Dallas, TX. I moderated a panel discussion featuring Murguia as well as John Prendergast, CEO of Blueleaf on this exact issue. The session is titled Competing Against Robo Advisors: Delivering Advice in a New World and it delivered several gut-checks as you think about where your business is headed in the next five years.

Here is Part 1 of the session:

Here is Part 2: