Our second stop in Washington DC is a visit with Alex Murguia and John Wotowicz of inStream Solutions.
Hear how the need for a different approach to financial planning inside McLean Asset Management expanded to a dedicated wealth management solution for all financial advisors.
CHAPTER MARKERS:
0:10 FPPad Tech Tour Intro
0:43 inStream introduction
4:27 What prompted the move to make inStream a product for all financial advisors?
6:28 What are the important personal attributes of Alex Murguia?
7:20 Introducing John Wotowicz
9:38 How John applies his passion to the growth of inStream
11:20 How will inStream push the envelope of financial planning software in the future?
13:14 inStream announces match for contributions to the Foundation for Financial Planning
Our second stop in Washington DC is a visit with Alex Murguia and John Wotowicz of inStream Solutions. Hear how the need for a different approach to financial planning inside McLean Asset Management expanded to a dedicated solution for all financial advisors. .
This is an audio-only podcast of the FPPad Tech Tour interview with Alex Murguia and John Wotowicz of inStream Solutions. Click here to view the full video.
On today’s broadcast, Microsoft discloses a zero-day vulnerability that affects nearly all Windows operating systems. See what you need to do right now to protect your systems from attack. inStream inks a partnership with BAM Advisor Services. Learn why this could be a big deal for the startup wealth management software provider. And, cyber attacks scare even the most security-conscious advisors. Find out about a new assessment service that can help defend your business from online attacks.
Today’s episode is brought to you by ITEGRIA, providers of complete outsourced technology support, security, infrastructure and IT solutions exclusively for RIAs.
In their new book titled Red Flags, you’ll learn how to protect your firm from cyber-attacks, disasters, and IT compliance risks. Learn more about the Red Flags book by visiting fppad.com/itegria.
Before I get to the links to this week’s top stories, first answer this live poll:
[This week’s top story involves the hot topic of cybersecurity, as Microsoft disclosed a scary vulnerability in nearly every version of Windows on the market. So if you’re watching on a Windows machine, you need to pay attention. Mac users, you can go top off your Halloween candy.
Ok, so the vulnerability allows attackers to exploit Microsoft’s Object Linking and Embedding technology, better known as OLE, by sending you a Microsoft Office file with malicious code inside. If you open document, the attacker can gain access to your account’s rights and permissions and can remotely execute code on your computer. The potential for damage isn’t that great if your account has limited permissions, but if your account has administrative rights, then really bad things can happen. Pretty scary, huh? (scream)
So here’s what you need to do right now: first, remind everyone in your business once again never to open suspicious Microsoft Office documents, especially PowerPoint files, that are attached to dubious emails.
Then, to patch this vulnerability, head over to fppad.com/145 to find the link to Microsoft’s Security Advisory that contains the instructions on how to get the update. Now would also be a good time to make sure you’re current on all of your Windows updates.] Microsoft issued a security advisory this week with details of a zero day vulnerability that affects every supported version of the Windows operating system with the exception of Windows Server 2003.
[Ok Mac users, you can come back now, because next up is a story from Buckingham Asset Management and BAM Advisor Services, as the joint companies announced the selection of inStream as its wealth management platform for their 370 affiliated advisors.
You have to go way back my episodes in January for news on inStream, when the company announced that it would switch from a free plan to one that costs roughly $2,400 a year to use. But under the new strategic partnership, advisors who are part of the BAM Alliance will have full access to the inStream platform for no additional cost.
This is a big deal for inStream, as Buckingham Asset Management and BAM Advisor Services collectively manage or administer over $23 billion in assets, making them one of the largest RIAs in the country. So you might want to raise inStream a little bit higher on your radar, as I expect you will be hearing more from the company regarding new partnerships and financial planning functionality.] Buckingham Asset Management/BAM Advisor Services, one of the country’s largest independent wealth management enterprises, has chosen the inStream planning-centric wealth management software platform to serve the more than 370 advisors representing the more than 140 client firms in its network.
[And finally, cybersecurity raises its ugly head once again to finish this week’s episode, but this time the news comes from Investment Technology Partners, a cloud IT provider to RIAs. Earlier this week, ITP announced it is now offering IT infrastructure assessments to RIAs to identify ways you can proactively build up your defenses against online attacks.
ITP’s assessment consists of a pre-visit questionnaire, an onsite inspection, and a post-visit follow-up, all in an effort to help you update your policies and procedures to address cybersecurity risks. Back in episode 129, I told you about the SEC’s new cybersecurity initiative and potential for increased enforcement around this area, so if you’ve been sitting on your hands since then, let this serve as another reminder that you now have a variety of providers you can engage to navigate you through this challenging landscape. In addition to ITP, popular cybersecurity audit providers include Itegria, Envision RIA, External IT, True North Networks, Right Size Solutions, and more.] Investment Technology Partners, an outsourced cloud IT provider focused in the Independent Registered Investment Advisory marketplace has begun conducting IT infrastructure assessments for RIA firms who have engaged them be sure their firms can positively respond to the an SEC audit looking into cybersecurity policies.
Here are the stories that didn’t make this week’s broadcast:
http://online.wsj.com/articles/td-ameritrade-offers-robo-technology-to-advisers-1414013725 from WSJ.com
TD Ameritrade AMTD +0.39% is making robo technology available to the 4,000 independent registered investment advisers who use its custody and trade clearing services. The technology is coming from a fledgling San Francisco firm, Upside Financial LLC, and is in the final stages of being added on to the Omaha, Neb.-based brokerage firm’s systems that are used by independent advisers to manage client money.
A strategic partnership between United Capital and the founders of financial planning tool FlexScore led United Capital acquiring a Modesto-based firm with $320 million in assets.
Junxure has released an enhancement to Junxure Cloud, the first major upgrade to the cloud-based CRM program used by RIA firms and broker-dealer reps since its launch this summer.
Encrypt sensitive information, planners are routinely warned by security experts. Many states even require it. But there’s also confusion out there among advisors about the nuts and bolts of encryption.
Erado, an innovator in electronic communication compliance, announced today that it has expanded its partnership with Investacorp, Inc., to include Erado’s email archiving and all-encompassing social media compliance platform.
On today’s broadcast, how a business model pivot by a rising wealth management software provider will affect your technology spending, technology experts chime in on the trends that are sure to affect all advisory businesses, new integrations provide marketing resources to grow your online audience, and more.
This week’s episode of Bits and Bytes is brought to you by Total Rebalance Expert, the industry’s largest, privately owned portfolio rebalancing software provider.
Fresh off its acquisition of PowerAdvisor, TRX offers advisors tax-efficient rebalancing, an easy to use interface, and more, all at an affordable price. Learn how you can gain a half a million dollar return on your technology investment by downloading their latest white paper at fppad.com/trx
[This week’s lead story comes from inStream Solutions, which just announced that the company is no longer offering a free subscription plan to financial advisors. inStream first received attention in 2011 by introducing the free financial planning software tool for advisors, with hopes of monetizing advisor participation through an online product marketplace.
But just like many well-known startups including Twitter, Instagram, SnapChat and more seek ways to monetize their platform, inStream shares the challenge of figuring out how to build a sustainable revenue model for its innovative platform.
So the free plan is going away, replaced by a $2,400 annual subscription. Existing users do have the option to subscribe for $1,000 in the first year, and any advisor who signs up by this summer will receive 50% off their first year subscription.
More details about inStream’s pivot as well as the release of a new Safe Savings Rate tool are in this week’s show notes.] Financial planning software startup inStream Solutions drops its free pricing plan, switches to annual subscription model
[Next up is a peek into the minds of technology experts in financial services. The cover story of this month’s issue of the Journal of Financial Planning is all about technology for planners; the trends, spending patterns, and rising concern of online “robo-adviser” services.
I had the privilege of joining tech experts Joel Bruckenstein, Jennifer Goldman, and JP Nicols in this roundtable discussion moderated by none other than the venerable Michael Kitces. Be sure you read the roundtable transcript and think about what changes you need to make in your business for 2014 and beyond.] Technology is essential to operating a successful and profitable planning practice. Whether it’s software integration, mobile devices, cloud computing, or the latest on so-called robo advisers, you’ve got questions. The Journal’s practitioner editor, Michael Kitces, uncovers the answers in this roundtable discussion with tech experts Joel Bruckenstein, CFP®, Jennifer Goldman, CFP®, JP Nicols, CFP®, and Bill Winterberg, CFP®
[Now one of the takeaways from the roundtable cover story is that advisors don’t have the budget or venture capital funding to deploy a nationwide marketing blitz. So how can you build your brand and online audience in the face of this competition?
One way is to use content marketing libraries that integrate with your current technology. New this week is the integration of the Bill Good Marketing library into Redtail CRM, giving over 75,000 Redtail users access to compliance-approved marketing material from Bill Good.] CRM systems Gorilla and Redtail Technology collaborate to address major trends affecting Financial Advisors
[And another offering comes from Advisor Websites, which now offers its “Hall of Famer” users the ability to embed written as well as video content on their website through a partnership with FogLifter.
For more information on the marketing integrations and to view some of the sample content, go to Video 1: Tax & Income Planning http://www.viddler.com/v/1c97c093 and Video 2: Fiduciary Difference http://www.viddler.com/v/479dfc19 .] It’s a new year and big things are happening at Advisor Websites! We are thrilled to announce the addition of new content for all Advisor Websites users!
Unboxing the 2013 Mac Pro: The ultimate desktop for financial advisers from FPPad
[And finally, many of you have asked me what equipment I use to produce each episode of FPPad Bits and Bytes. Well just a few weeks ago, I received my new Mac Pro from Apple and have transferred all of my video editing over to this powerhouse of a machine.
I filmed the unboxing of my Mac Pro and uploaded my review to my YouTube channel this week, so if you’re interested in building your multimedia production capabilities, I suggest you watch the review to see if a Mac Pro purchase makes sense for you. And in case you don’t know, everyone who subscribes to the FPPad newsletter gets my complimentary guide to creating awesome videos. Sign up at fppad.com/subscribe to get your copy today.] The all-new Mac Pro is a powerhouse loaded with processors and memory, but it might (just might) be a little bit overkill for financial advisers
Watch FPPad Bits and Bytes for January 10, 2014 on YouTube
But like many startups, inStream just made a pivot in its business model that eliminates the free plan altogether for some 2,000 users.
inStream No Longer Free
This week, inStream announced that it is switching to an annual subscription model, with retail pricing set at $2,400 per user.
inStream Solutions CEO Alex Murguia introduces the startup at FinovateSpring 2012 (watch on YouTube)
Volume discounts will be available for large firms, and existing users of the free plan will be offered the chance to subscribe for just $1,000. Also, as an incentive to new users, inStream is offering 50% off the retail subscription fee to any new adviser who signs up prior to June 30, 2014.
Not only that, inStream is also changing its positioning in the market by calling the solution a “wealth management platform” in favor of its former financial planning software heading.
More than Financial Planning Software
inStream replaces the financial planning software terminology in favor of a wealth management tool
In an interview with Financial Advisor magazine tech editor Joel Bruckenstein, Alex Murguia, founder and CEO of inStream, said, “We are not trying to create financial planning software; we’re creating a wealth management platform that financial planners can use to run their businesses.”
To its credit, inStream has recently added features that transcend beyond traditional financial planning to increase the value and utility of the solution.
In recent months, inStream brought on Dr. Wade Pfau, Professor of Retirement Income for the American College, to lead its new Financial Planning Research division (watch FPPad Bits and Bytes for August 2nd for more details on Pfau’s involvement).
Out of this partnership, inStream will soon release what it calls the industry’s first “Safe Saving Rate” planning tool developed under the guidance of Pfau.
Existing Updates, Too
inStream is also upgrading many of its existing functions, which include mind map plugins, proactive alerts, and custom reports for financial plans.
For more information on the new pricing plans, as well as feature enhancements, visit inStream online at www.instreamwealth.com
On this week’s broadcast, learn the hits and misses from the year’s most anticipated advisor technology survey, the pending termination of several financial planning software products catches advisors off guard, how the leading independent custodians are stepping up their technology, and more.
This week’s episode is brought to you by Angie Herbers Incorporated, a consulting and research company to financial advisory firms, who just released a new white paper called Take Two: The New Direction of Succession that addresses the key elements to create a successful transition to your junior advisors.
Download the Take Two white paper for free, along with other practice management resources, by visiting fppad.com/ahi
[Leading off as the top story is one of the most anticipated technology articles that comes out every year. The first of December marks the release of the annual Financial Planning Magazine Technology Survey, where Joel Bruckenstein digests over 1,100 responses about the various software programs and practice management tools used by financial advisors today.
So who are the winners and losers from this year’s survey?
Redtail Technology, Salesforce, and Tamarac Advisor CRM are the winners among CRM software, as advisors continue to embrace cloud-based technology, with slippage coming from Junxure, ProTracker, ACT, and Goldmine.
In financial planning software, this year’s results are essentially a carbon copy of last year’s survey, with MoneyGuidePro, eMoney, and MoneyTree claiming the top three spots.
And the same is true with portfolio management software, as the top 6 vendors are also a total repeat of last year’s results.
So who missed out on opportunities this year? The survey randomly selected new products from Blueleaf, inStream, and Market76, but found that few advisors had even heard of these relatively new players, which tells me that financial advisors, well, those who don’t watch Bits and Bytes, continue to be a challenging market for new providers to gain exposure.] The move to the cloud is finally taking place. In category after category of this year’s Financial Planning Tech Survey, we found software providers making the shift, and advisors responding.
[The next story features news from Advicent Solutions, the company formerly known as Zywave, who provides a suite of financial planning software to advisors under the NaviPro brand.
In an unexpected announcement to some users, the company announced it will sunset six of its NaviPlan products on March 31, 2014, citing an “ever-changing marketplace.”
Going away will be all of the NaviPlan Extended and NaviPlan Standard desktop-based variants, making the cloud-based NaviPlan Premium and NaviPlan Profiles the sole applications that will receive ongoing support and enhancements in 2014 and beyond.
This news reinforces the trend of advisors adopting cloud-based solutions as seen in the Financial Planning Software Survey, so don’t be surprised when other providers announce the discontinuation of their own desktop-based software in favor of cloud-based alternatives.] NaviPlan financial planning products for desktop computers will be discontinued as the owner develops its NaviPro products for online use.
[Software providers aren’t the only ones making big changes in advisor technology, as four of the major custodians are also investing heavily in advisor-facing technology in a very competitive arms race. Once again, Joel Bruckenstein interviewed executives from Fidelity, Pershing, Schwab Advisor Services, and TD Ameritrade Institutional to reveal their strategies to help make advisors more efficient and more profitable through enhanced technology.
There’s a ton of great information in this article, so be sure to read it to see what your custodian is doing to help you grow your business.] Over the last several years, custodians have been investing in advisor-facing technology like never before.
[And finally, one company benefiting from custodian technology enhancements is Envestnet|Tamarac. This week, the company announced that its Advisor Xi suite will soon integrate directly with Pershing’s NetX360 custodial platform, giving advisors straight-through processing capabilities for trades in accounts held at Pershing, as well as access to real-time custodial account data.
The real-time data feeds will compliment existing integrations with Schwab and TD Ameritrade supported today, and expand straight-through processing trading capabilities announced at Schwab IMPACT several weeks ago.
Tamarac anticipates that the new integrations will roll out to its 660 firms during the first quarter of 2014.] Envestnet | Tamarac, a division of Envestnet, Inc., a leading provider of integrated, web-based portfolio and client management software for independent advisors and wealth managers, announced today that it has formally begun the integration of its Advisor Xi(R) platform into Pershing’s NetX360(R) custodial channel for investment professionals and Registered Investment Advisors (RIAs). Advisors will have access to this integration in the first half of 2014.
I’m now delivering the week’s best technology bits for financial advisers in a video broadcast you can bite into anytime you like (oh yes, I just did that).
This week’s edition of Bits and Bytes is brought to you by Redtail Technology, providers of cloud-based CRM for financial professionals since 2003.
Check out their popular advisor solutions and sign up for a 30-day free trial. Visit fppad.com/redtail for more information.
(Watch on YouTube). But still, those with short attention spans or aficionados of the written word can get this week’s stories of interest in their full-text glory below.
Like it? Hate it? Let me know!
Like the new format? Hate it? Don’t care for it? Be honest, and let me know by contacting me.
Tech reporter Davis Janowski leaving InvestmentNews to become editor for WealthFront, via Davis’ Twitter feed
[In this week’s lead story, venerable technology reporter Davis Janowski announced this week that he will be leaving his position as tech reporter at InvestmentNews to assume the editor role over at WealthFront. Most of you should recognize WealthFront from a number of past articles about online financial advice platforms and so called “robo-adviser” platforms. For as long as I can remember, Davis has been a solid journalist covering technology for financial advisers and inspired me to launch FPPad back in the day. So Davis, thanks for all your work and passion, and I look forward to what you have in store for advisers with your new role at WealthFront.]
For all my friends and colleagues out there actually following me, I am indeed leaving @newsfromIN and joining @Wealthfront as editor
[In my Defending Against Phishing, Hacking, and Spoofing Attacks presentation, this is one of the attacks I talk about under social engineering. See, hackers drop these little USB flash drives in business parking lots, labeled with enticing messages like “personal and confidential” or “2012 tax returns.” They hope than an unsuspecting employee will pick it up and plug it in to their corporate computer, which unbeknownst to the employee unleashes all kinds of malware and spyware inside the corporate firewall. The best defense against this tactic: train everyone in your organization not to use USB drives from unknown sources. The risk of stumbling on a rogue device is just too great.] You should be already aware of the data theft risks that USB flash drives pose to your company – even a seemingly lowly 2GB drive can hold a lot of precious data – but a new threat has emerged which makes them even more dangerous.
[inStream, the provider of free web-based financial planning, strike that, practice management software, just beefed up its chops in the retirement planning area by hiring Dr. Wade Pfau to lead its Financial Planning Research division. Pfau is the Professor of Retirement Income for the American College and has authored a number of influential papers on retirement research. Clearly, advisers looking to serve the needs of their retiring clients want access to the leading research on retirement planning, and Pfau’s connection with inStream will likely raise the company’s profile on most advisers’ radar. A final note: inStream is an advertiser on FPPad and helps support content production just like this.] inStream Solutions (“inStream”) announced today that American College Professor of Retirement Income Dr. Wade Pfau has joined the firm to lead Financial Planning Research.
[Orion Advisor Services is well-known for its hosted portfolio management software and reconciliation service bureau. One issue with many of these services is that the reports themselves might not be exactly what advisers are looking for and want to present to their clients. Some advisers turn to third-party providers like MorningStar or AdvisoryWorld for more attractive reports that better convey information advisers want to put in front of clients. Well this week, Orion announced that its Report Builder solution now integrates with AdvisoryWorld, so advisers can pull in components like risk analytics, Modern Portfolio Theory statistics, and diversification and overlap analysis directly from AdvisoryWorld, but be able to match the font size and look and feel of standard Orion reports. If you’re one of the hundreds of Orion users, check out the updated Report Builder and see how you can enhance your reports with the latest AdvisoryWorld integration.] Orion Advisor Services, LLC, a premier portfolio accounting service provider, is delivering more robust performance reporting capabilities to its advisor clients through expanded integrations with AdvisoryWorld, a leading provider of customizable portfolio analytics and investment planning applications to the financial services market and PIEtech’s MoneyGuidePro, the leading goal-based financial planning software for financial advisors.
[For rebalancing software, advisers are pretty familiar with Envestnet|Tamarac, TD Ameritrade Institutional’s iRebal, and Total Rebalance Expert. One of the programs not on most advisers’ radar is Atom Align from Blaze Portfolio. This week, the folks at Blaze Portfolio announced that their solution, Atom Align, is now integrated with Advent’s Black Diamond portfolio management software. So if you’re a Black Diamond user and don’t have rebalancing software, you have one more option to consider to increase your efficiency when rebalancing client accounts.] BlazePortfolio is excited to complete its integration with Black Diamond. The BlazePortfolio and Black Diamond integrated solution offers Investment Advisors the opportunity to utilize both platforms for their back office systems.
[If you’re like me, you work hard to build your brand and build your profile through a number of social media websites. So a big part of measuring your success for the time you spend on social media is the ability to get metrics and real data behind your social media activity. Mashable reported on Wednesday that LinkedIn is now offering analytics for Company Pages set up on the site, so if your firm has a Company Page, go sign in and look for the new analytics tab in your menu.] LinkedIn added analytic support to Company Pages Wednesday, giving businesses the opportunity to track how content shared on LinkedIn performs.
And if you want to read the best material in financial planning knowledge and information over the weekend, click or tap the button below to head over to Michael Kitces’ Nerd’s Eye View blog and see the latest in Weekend Reading.
Yesterday I covered inStream Solutions’ presentation at FinovateSpring 2012 (see FinovateSpring 2012 highlights for independent financial advisers: Day 2). Below watch a short spotlight video with inStream CEO Alex Murguia about the ways the application can expand beyond the independent RIA marketplace.
Here are today’s best takeaways for financial advisers.
(updated 10:27PM PDT)
Pindrop Securiity uses acoustic forensics to identify fraudulent and spoofed phone calls
[Last month I posted Why financial advisers can’t trust their clients anymore, as hackers are using more sophisticated methods to “spoof” clients’ identity and steal money. Some hackers use Caller ID spoofing to display a victim’s phone number in an attempt to fool an adviser into believing the incoming call is legitimate. Pindrop Security now offers a way to use acoustic forensics to examine over a hundred characteristics of incoming phone calls. They look for call characteristics like transmission over cellular networks versus voice-over-IP (VoIP), geolocation information, and more. While it’s likely targeted to call centers with high call volume, I wouldn’t be surprised if a tool like this trickles down to independent financial advisory firms who need such security capabilities.]
[I spoke with FutureAdvisor co-founder Bo Lu and filmed the interview for my YouTube channel. I should post it sometime next week. In the meantime, FutureAdvisor is another direct-to-consumer online advice platform, but is focused on servicing the defined contribution 401(k) market. At Finovate, they changed their business model by offering its Premium subscription tier for free while in beta, which previously cost $149 per year.] Kicking off the final afternoon session, FutureAdvisor showed how its new platform gives actionable investment advice.
[After opening their product to advisers last year, inStream Solutions, the proactive financial planning software application, now has over 800 firms representing $200 billion in assets under advisement on board. I filmed inStream CEO Alex Murguia here at Finovate and will post the video to YouTube in the next week.] inStream is changing the market standard for what is generally referenced today as “financial planning software” through multiple innovations
(updated 11:14AM PDT)
Would you rather watch football instead of planning for retirement? This app’s for you.
[Here’s an interesting take on financial education and planning tools; combine football concepts with finance. Portfolio Football is a platform that invites users to make a fantasy football “team” (aka portfolio) of 11 “players” (aka stocks, mutual funds, and ETFs). With a fantasy team assembled, Portfolio Football delivers allocation summary and performance graphs to show how this portfolio has performed in the past. It’s interesting, but I didn’t get a feel of how Portfolio Football determines what “players” would be appropriate on a “team” across a variety of investors, and whether or not 11 is a magic number of players. I give them credit for focusing on a very specific niche, though; the fantasy football community!]
[What Brightscope did for retirement plan ratings, Transparency Labs seeks to do for retirement plan disclosure language. Have you ever read all the fine print about how your 401(k) works? Me neither. While intriguing, clients that engage financial advisers have an edge, as advisers generally counsel clients on the penalties of cashing out 401(k) accounts prior to reaching retirement. But for the rest of America, this can be a useful tool to help plan participants keep more of their money.] Transparency Labs addresses America’s “Cash-Out Crisis” by helping retirement savers understand the penalty, fee and tax implications of cashing-out their retirement savings as they change jobs
[You have client data loaded on computers, phones, and tablets. By and large, sensitive data is protected by a basic username and password login. What BehavioSec does is apply a transparent layer of security protection that samples the behavior of how a user interacts with a device and types passwords into the system. BehavioSec calculates a confidence score in real time, and if the input behavior doesn’t match the user’s behavior, access is denied. Definitely cool software for security.] BehavioSec demonstrated its mobile security solution that uses behavioral analytics.
Today’s video spotlight features Alex Murguia, CEO of inStream Solutions, a new financial planning software application built around the proactive planning process.
Hear Murguia address the challenges his firm, McLean Asset Management, faced with traditional, reactive financial planning models and the investment he and his partners made to create a new, proactive solution. In addition to proactive alerts, hear about the marketplace inStream creates to aggregate financial calculators and products that can benefit clients’ financial plans.
