Tag Archives: ByAllAccounts

FPPad Bits and Bytes for September 30, 2016

On today’s broadcast, get updates on hackathons hosted by Orion and eMoney, Motif Investing introduces subscription pricing, Betterment automates asset location preferences, and more.

So get ready, FPPad Bits and Bytes begins now!

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by Envestnet | Tamarac, providers of Advisor Xi, an industry-leading fully integrated web-based suite for RIAs. Tamarac’s Advisor Xi unifies portfolio management, modeling, rebalancing, trading, billing, and reporting with a fully customizable client portal and enterprise-grade CRM.

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On October 20th, two innovative and rapidly growing firms will share how they leveraged the Advisor Xi Suite in their business during an interactive webinar. Space is limited, so secure your spot today by visiting http://fppad.com/tamarac

Here are the links to this week’s top stories:

Fuse 2016: Day One and eMoney Advisor Summit 2016: Hack-a-thon Day One

Now you’ve probably noticed that it’s been a few weeks since my last Bits and Bytes broadcast, and that’s because I’ve attended not one, but two hackathon events hosted by financial technology companies. The first was the Fuse event in Park City, Utah, where Orion Advisor Services assembled developers from dozens of companies to present innovative ways they leverage the Orion Notifications platform. My producer Steve and I vlogged each day of the event, which I highly recommend you watch to find out who claimed the coveted Best in Show award.
And then two weeks later, eMoney hosted their own hackathon event, which had a bit of a different structure from Fuse, as four groups of advisors teamed up with eMoney product, design, and engineering employees to build new planning experiences onto the existing eMoney platform. We made vlogs of this event, too, which I also think is worth your time to watch.
Now, I get that hackathons generate good PR and marketing buzz for the host companies, but quite honestly it’s exciting to see activities like these that promote innovation and experimentation with technology that’s all about helping you serve your clients AND be a better business owner.

Motif Enters Subscription Economy, Introduces Motif BLUE from BusinessWire

Now, moving on to top stories, let’s start with Motif Investing, as the company just introduced a new subscription-based service called Motif BLUE. If you remember back in December 2014, I awarded the Best Back-Office Technology to the Motif Advisor Platform, but that was before the company switched from a flat monthly fee per customer to an AUM-based fee schedule.
But with Motif BLUE, the monthly fee makes a comeback, as customers can pay up to $19.95 a month to invest in three motifs, get auto-rebalancing of professional motifs, and trade motifs three times per month commission free.
So my theory is, customers can use the Motif BLUE Starter plan at $5 a month to mimic one of the asset allocations of the popular automated investment services out there, but instead of paying an AUM-based fee of, oh, 25 to 35 basis points, customers pay Motif roughly $60 a year.
Do the math, and Motif is cheaper when assets go above about $20,000 versus an annual fee of 35 basis points. Now I admit, there are still other differences between Motif Investing and automated investment services, but I think you can sense I believe that fees for investing software should not be based on the size of the assets being managed, and I expect that trend to grow as customers gravitate towards subscription-based pricing models.

Tax-Coordinated Portfolio™: The Latest Breakthrough in Tax-Smart Investing from Betterment

But to up the ante, Betterment announced its own new offering called the Tax-Coordinated Portfolio service, where Betterment automatically implements asset location preferences across taxable and tax-deferred or tax-exempt investment accounts.
Now the concept of asset location preferences is nothing new, but what IS new is the ability to use software to automatically manage location preferences on the fly, such as when clients make one-time deposits or withdrawals across their various accounts. Betterment confirmed that this service will be available to Betterment for Advisors customers, so when I go back to that whole discussion around fees a moment ago with Motif Investing, one could argue that higher fees could be justified because of nuanced differences like automated asset location management.

Quovo Unveils Advisor Dashboard, Arming Financial Advisors With Enriched Client Data Insights in an Intuitive User Interface from Marketwired

And look, if you want to effectively mange asset location preferences, you really need to see all of your clients’ assets and accounts, which leads me to my final story that comes from Quovo, as the company announced the release of the Quovo Advisor Dashboard. The dashboard allows advisors to quickly view information on both assets under management as well as held-away assets, easily synchronize new client accounts, and generate simple reports based on the data obtained by Quovo.
Now I know aggregating held-away assets has always come with its share of challenges (like expired account credentials), but with the Department of Labor fiduciary requirements coming in April next year, how will you be able to defend the advice you provide to clients if you don’t have a clear picture of their assets and liabilities?
You can certainly get those details without using account aggregation, but it just won’t be very efficient, and with direct-to-consumer providers like Personal Capital and Betterment including account aggregation in their solutions, well, these are the new table stakes for technology in your business. So if you’re not using solutions like Quovo or alternatives like Morningstar ByAllAccounts, Aqumulate, eMoney, Wealth Access, Yodlee and others, there’s still time to add one of these to the tools you use today.

Here are several stories that didn’t make this week’s broadcast:

Riskalyze Rolls Out Coverage for Individual Bonds from Riskalyze

It’s a request we’ve heard from a lot of advisors: make it simple to include individual bonds in a portfolio on Riskalyze. We’re excited to announce that coverage for over 30,000 individual corporate, government and municipal bonds will arrive on October 1.

Qumram launches fully-compliant WhatsApp social media record keeping from Qumram

Despite end-to-end encryption, Qumram enables financial services firms to meet client demand for social media interaction, via WhatsApp, without compromising compliance.

Save time with smart scheduling in Google Calendar from Google

If you’re using G Suite, “Find a time” already lets you set up meetings much faster in Calendar on Android. Today it’s coming to iOS and by the end of the year, the web.

FPPad Bits and Bytes for March 6

On today’s broadcast, Wealthfront wants you to know they crossed another round number in AUM, ByAllAccounts is now aggregating over $1 trillion dollars in investor assets, and Morningstar is out with a new iPad app for advisors.

So get ready, FPPad Bits and Bytes begins now!

(Watch FPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by IMPLEMENT NOW, the independent advisor’s Practice Management Virtual Summit hosted by Kristin Harad broadcasting online March 16th to the 20th. When you register, you’ll get access to interviews and bonus material from 22 industry thought leaders as they reveal their practice management secrets for success.

Register for Implement Now

And if you register by March 15th, you’ll receive a copy of Carl Richard’s new book The One Page Financial Plan. Find all the details for this high-impact event by visiting fppad.com/implementnow

Two Billion Reasons to Believe from Wealthfront, and

Vanguard may expand fast-growing virtual investing service to advisers from InvestmentNews

[First up is news from online investment service Wealthfront, as the company announced this week that it has surpassed the $2 billion dollar mark in assets under management, an increase of 20 times in just over two years. This places the automated investment service just barely in the Top 100 RIA firms measured by assets according to the InvestmentNews RIA database. However, another online provider has also entered this rarefied territory, but with very little fanfare.

That provider is mutual-fund giant Vanguard, as the Vanguard Personal Advisor Services™ reached $10.1 billion dollars in assets as of the end of 2014, and it’s still in a limited pilot program. If you do the math, the company added nearly $8.8 billion to its platform in just nine months, and the company is also considering offering some form of the service to advisers.

So while the startups continue to make headlines and receive face time on cable business TV, the incumbents that the startups say they’re disrupting are putting up some very impressive growth metrics of their own.] Wealthfront managed less than $100 million in client assets when I joined, and had many skeptics. No one outside of the company could have imagined that, just over two years later, we’d celebrate being the first automated investment service to reach $2 Billion in client assets under management.

Morningstar Reaches Milestones, Aggregates More than $1 Trillion in Assets Daily With Access to 20,000 Financial Data Sources Through Morningstar ByAllAccounts Aggregation Service from Morningstar

[Related to online asset tracking is this is news from Morningstar, as the company announced its ByAllAccounts aggregation service now aggregates over $1 trillion dollars in investor assets. You may recall that Morningstar acquired ByAllAccounts back in April of 2014, and since then the number of supported data sources has grown to over 20,000 from 4,500. Can you say Yodlee?

So what does this mean for you? Remember, most of the online investment services don’t take into account the assets users have in their held away accounts. Personal Capital is one exception, but they’re not a pure online service, either. The rest don’t have the complete picture of their users’ net worth, so if you’re on the fence about incorporating account aggregation in your business, this is one area in your value proposition where you can outperform the online competition.] Morningstar, Inc., a leading provider of independent investment research, today announced a number of milestones for its Morningstar® ByAllAccounts aggregation service.

Review: Morningstar’s New iPad App from Financial Planning Magazine

[And finally, Morningstar also rounds out this week’s broadcast as Joel Bruckenstein reviewed their new iPad app built for the needs of financial advisers. I had the opportunity to recently test the app with Morningstar’s Mike Barad as he walked through the market research information, complete with embedded videos from Morningstar analysts, as well as the Clients and Portfolios view that advisors can use to stay up to date on client asset allocations, holdings, and more.

There are a few wish list items that Bruckenstein highlighted, such as the inability to conduct trading or rebalancing activity within the app, or to view Portfolio X-Ray reports on aggregated accounts. Still, for a version 1.0 app, advisors who use Morningstar Office or Workstation in their business should find the app useful for those times they’re away from their desktop computer.] While Morningstar has long been known as a leading provider of independent investment research, the company also produces a number of software applications for advisors.

Here are the stories that didn’t make this week’s broadcast:

Into The 21st Century, Finally from Financial Advisor Magazine

Years before there was Riskalyze or Pocket Risk, there was FinaMetrica, a comprehensive risk-profiling tool for use by advisors with their clients.

Wealth Access integrates with MoneyGuidePro from InvestmentNews

Wealth Access, a personal financial management platform, announced Tuesday its integration with MoneyGuidePro, a popular financial planning software.

Breaking Delivers the News to Your Mac or iPhone Notification Center from Lifehacker

OS X/iOS: Keeping up with the news is easy, but keeping up with news you care about can be trickier. Breaking is a new app that makes it easier.

FPPad Bits and Bytes for March 6, 2014

FPPad Bits and Bytes for March 6, 2014

T3 2014: MoneyGuidePro to integrate Yodlee for account aggregation

Bob Curtis, President and CEO of MoneyGuidePro (right) forecasting the future of financial planning with Harold Evensky (left)

Bob Curtis, President and CEO of MoneyGuidePro (right) forecasting the future of financial planning with Harold Evensky (left)

Popular MoneyGuidePro financial planning software to aggregate held away accounts through a new Yodlee integration

Ask most technology consultants and financial advisers about their account aggregation options, and you’ll likely hear just a few common names.

ByAllAccounts, Fiserv’s CashEdge, and perhaps Intuit.

But Yodlee?

That solution almost never gets mentioned.

Until now.

MoneyGuidePro Integrates Yodlee

In a packed general session at the 2014 Technology Tools for Today (T3) conference, Bob Curtis, President and CEO of MoneyGuidePro announced that the popular financial planning software program will soon integrate account aggregation functionality using services from Yodlee.

One of the reasons I believe Yodlee hasn’t gained traction among financial services technology solutions is price. Yodlee is a rather expensive solution relative to its counterparts in the marketplace.

But MoneyGuidePro is breaking down the potential barrier of cost with very aggressive pricing.

Yodlee For $1 a Day

In his general session, Curtis announced that MoneyGuidePro will offer the Yodlee integration at an introductory cost of $365 annually. That’s right, just $1 per day.

And as to when the Yodlee integration will be available, Curtis told advisers that the account aggregation functionality is anticipated to be rolled out in Q2 of 2014.

For more information on the Yodlee integration with MoneyGuidePro, read the full press release at BusinessWire.

FPPad Bits and Bytes for May 25

Between a presentation in Charleston, SC on Monday, Redtail U in Dallas on Tuesday, filming more Spotlight Video on Wednesday, and taking my son to the zoo on Thursday, updates to FPPad rank about number nine on my list of important things to do. But I still can set aside time this morning to give you the best financial planning technology news from around the Web.

Here are this week’s stories of interest:

Advent Software Selects ByAllAccounts to Provide Retail Account Information to Advent OnDemand® Users from PRWeb

[Advent isn’t the largest portforlio management software by number of users among RIAs, but it’s definitely a top ten vendor. In this latest announcement, advisers will benefit from ByAllAccounts’ thousands of connections with held-away accounts they may not ordinarily aggregate, or perhaps aggregate manually.] Advent Software, Inc., a leading provider of software and services for the global investment management industry, announced it has selected ByAllAccounts, Inc. to provide retail account information to users of the Advent OnDemand® service.

Retire Logix to link with FPA’s PlannerSearch from Financial Advisor Magazine

[Financial planning software provider Financial Logix and the Financial Planning Association have partnered to make it easier for consumers using the Retire Logix software to find a financial planner through the FPA’s network of thousands of member planners.] Consumers using Retire Logix on their mobile phones now will be able to search for financial planners with a simple click.

Personal Capital is featured in four updates this week. Evidently one can “buy” widely distributed press by building a compelling financial dashboard from scratch.

Personal Capital’s Beautiful App Convinces The Wealthy To Trust Their Money To Strangers from FastCompany

[What buzz does Personal Capital consistently generate? Highlights of their data aggregation and comprehensive dashboard. But what most media outlets overlook is Personal Capital’s 10 employee financial advisors and how successful they are at managing assets to generate revenue for the business.] Personal Capital, a startup cofounded by Bill Harris, the former CEO of Intuit and PayPal, has created a new service that’s part “high tech,” part “high touch” to tackle both parts of the financial management equation.

Wealth management: Private pursuits from The Economist

[The next wave of multi-millionaires (and billionaires) from Facebook’s IPO is about to hit Silicon Valley. When they do, which method of wealth management will they choose? Traditional institutions or the nimble, tech-enabled startups?] Silicon Valley is already awash with traditional wealth managers. UBS, Goldman Sachs, JPMorgan and others are expanding in San Francisco and around Silicon Valley. They have recently been joined by online rivals such as Wealthfront, MarketRiders and Personal Capital, all of which use technology to help clients build customised asset portfolios at a small fraction of what traditional wealth managers would charge.

Personal Capital app demo from TechCrunch (embedded below for your convenience)

[Here’s a long interview of Personal Capital’s Bill Harris by TechCrunch, including some short segments of an app walkthrough. At least in this video you discover Personal Capital has 10 employee advisers ready to service clients under their RIA.] The CEO and VP of Engineering of Personal Capital demo their financial app.

Online RIAs will mostly fail — and here are 10 reasons why from RIABiz.com

[This article is last, because its author, Jack Waymire, misses the point in my opinion. I feel one must take the perspective of the prospective client, perhaps a 30-something startup employee that is looking to cash out some lucrative stock options. Where is that individual going to go for financial advice? A shop that has paper account forms, paper quarterly reports, and no mobile app? Forget it! It’s 2012 for goodness sake.] I believe these companies and their financial backers have badly underestimated the strength of the relationships that exist between investors and advisors. For this reason, I believe these websites will fail or, at best, be marginally successful. Here’s why.

Personal Capital app demo