Software Survey Archives

FPPad Bits and Bytes for December 2, 2016

Posted on December 2, 2016 by Bill Winterberg in Bits & Bytes

On today’s broadcast, Vanare becomes AdvisorEngine after a $20 million dollar investment, RightCaptial gets a favorable review, and Addepar opens up about the capabilities of its technology.

So get ready, FPPad Bits and Bytes begins now!

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

Vanare gets $20M in funding from WisdomTree, and rebrands itself from Financial Planning

[First up is news from Advisor Engine, which you may recognize under the company’s former name of Vanare. The name change was carried out as WisdomTree, the exchange-traded fund sponsor and asset manager, announced a $20 million dollar investment in Advisor Engine for 36% equity in the company.

This investment is the latest example of ETF issuers getting in the automated investment service space, but remember, BlackRock acquired FutureAdvisor, Invesco acquired Jemstep, yet WisdomTree chose to make a minority equity investment. I’m just not exactly sure why they didn’t acquire the whole business, but then again, I’m not the one that has to cut a check for $50 million dollars.

So let me connect some dots. All of the automated investment services are putting downward pricing pressure on asset allocation and periodic rebalancing. So in general, margins for traditional portfolio management are being compressed. You can either add value elsewhere, or look for ways to save on operational costs for your business.

AdvisorEngine’s new capital means it likely won’t shut down anytime soon, AND, the company recently added support for custody services at Apex Clearing, which could be a potential way you reduce your operational expenses AND allow you to pass some of those savings directly to your clients, all from a white-labeled solution.

For me, that’s why this transaction is an interesting one to keep an eye on.] WisdomTree is providing [Vanare] with an injection of funds in a bid to better position itself for industrywide changes wrought by new technologies and stiffer regulations, according to CEO Jonathan Steinberg.

Is RightCapital the right fit? from Financial Planning

[Next up is news about RightCapital, as Financial Planning magazine columnist Joel Bruckenstein reviewed the financial planning software and offered his take of where it fits in the marketplace. One of the distinctive features RightCapital offers is the ability to generate simulated tax forms so you can actually see how decisions on deductions, distributions, and taxable withdrawals will impact a client’s personal tax return.

Also, just because RightCapital has a fresh and modern UI doesn’t mean it’s a solution only for younger clients. RightCapital’s robust modeling of asset withdrawal strategies was highlighted in the review, allowing clients to simulate the best withdrawal strategies when factoring in Social Security and tax-deferred tax-free retirement accounts.

Of course, there’s much more to the review, but overall, RightCapital gets recommended as a more-than-adequate application for the mass affluent market. A 14-day free trial is available so you can evaluate the solution for your clients’ needs.] The middle ground in financial planning software is exactly the niche that RightCapital is targeting, according to co-founder Shuang Chen.

Addepar’s strategy: Focus on HNW, arm advisers with digital tools from Financial Planning

[But, if your business serves high net-worth households, this week’s final story on Addepar should be worth taking note. The investment management technology company appears to be opening up a bit more about exactly what it is they do.

In an interview with SourceMedia managing editor Suleman Din, Addepar’s CEO Eric Poirier described how much of the high net-worth marketplace has been historically addressed by custom Excel spreadsheets.

When clients start identifying assets like their limited partnership interests, equity investments, venture capital, and so on, most off-the-shelf solutions just aren’t compatible with the esoteric properties of these assets. But that’s been Addepar’s focus for five years, according to Poirier.

That kind of development sets Addepar apart as the Ferrari of the investment management technology space and is appropriate for households that require that kind of horsepower, and while that power certainly scales down to more traditional accounts with stocks, ETFs, and mutual funds, I suspect you’ll find it’s a bit overkill in capabilities and price if your business primarily serves the needs of mass affluent households.] While other fintech startups claimed they would disrupt the wealth management industry, Addepar has taken the tack that it can make it better.

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

Future ready: Seismic moves for digital wealth management from Financial Planning

A close examination of the [2016 FP Tech Survey] data reveals other interesting trends, including which broker-dealers, custodians and third-party tech providers seem to be the best at meeting advisers’ needs, where advisers can get a good return on tech investment and how the next generation of advisers approaches tech.

Digital advice expects big growth from banks from Financial Planning

Digital advice as an industry will take off once it is built into retail banking, capitalizing on an investor segment ignored by wealth managers, says SigFig CEO Mike Sha. That’s why, announcing his firm’s newest partnership with Citizens Bank, Sha predicts his platform will reach half of all U.S. households by next year.

Watch FPPad Bits and Bytes for December 2, 2016

2015 Tech Survey Results! FPPad Bits and Bytes for December 4

Posted on December 4, 2015 by Bill Winterberg in Bits & Bytes

On today’s broadcast, it’s survey time. Find out about this year’s winners and losers in the annual Financial Planning Magazine technology survey.

So get ready, FPPad Bits and Bytes begins now.

Ok, this week’s coverage is all about the 2015 Financial Planning Magazine technology survey, analyzed every year by tech expert Joel Bruckenstein. This year’s survey consisted of just 600 responses, of which roughly 200 were from firms that identify themselves as independent RIAs.

Now I have to admit, this sample size is a lot lower then the peak back in 2011 when the survey collected over 3200 responses, but Financial Planning Magazine changed its survey methodology to prevent ballot stuffing, and insists that the current data is still statistically significant. So, now that we have that out of the way, you can draw your own conclusions from this year’s survey results.

Technology Spending

First up: technology spending. Survey says: Over 90% of advisors spent the same or more on technology this year. But honestly, I don’t see how spending on technology guarantees your firm will be any better in the long run, it just means you spend lots of money on technology.

I care whether you’re gaining efficiency and scalability from the technology you do purchase, which leads us to the next item. CRM software.

Top CRM Software

So what’s the top CRM in use? Survey says! None.

Seriously, none?!? Yeah. Among independent RIAs, 22.9% say they don’t use a formal CRM. Oh wait, I know what CRM they use: Cranium Relationship Management, because It’s All Right Here. Ugh.

But for those of you who DO use a CRM, top survey responses include Salesforce, Junxure, and Redtail, with Wealthbox doing a respectable job closing the gap with the top three.

Top Financial Planning Software

So what about financial planning software: Survey says! MoneyGuidePro takes the top spot, with eMoney in the runner up position for the sixth straight year. Eight other providers battle it out for the remaining solutions, with Advizr being one to watch with its quality showing after just one year in the marketplace.

Top Portfolio Management Software

And moving on, the next category is portfolio management software, with the top provider being, oh that’s right, survey says! PortfolioCenter.

Morningstar, Albridge, Envestnet and Orion round out the top five, as their numbers are fairly consistent with the tech surveys over the last few years. But, I’m fairly sure Envestnet and Orion are a lot closer to one another in marketshare than this survey shows, with Envestnet probably commanding a slight lead, so remember what I said earlier about statistical significance and sample size.

Top Client Portal

And finally, I’m wrapping up with the top client portal, so, survey says! Broker-dealer or custodian provided. Ugh. That’s not a portal, that’s online account access! Anyone with an account has that! Seriously.

At least with eMoney, which claimed third place, clients can securely upload documents, see all their financial assets using account aggregation, and more. If all you offer is read-only account access to client, you are not leveraging the potential of a real client portal.

I don’t know about you, but I’m a little depressed after digesting this year’s tech survey. There is a lot of work left to be done.

But here’s the silver lining: this survey covers the technology that some advisors are using up until today, but it’s not indicative of the cutting-edge solutions that have the potential to grow your business in the near future.

For that, you’re going to have to watch next week’s episode on my picks for the Best Technology of 2015.

Watch FPPad Bits and Bytes for December 4, 2015

FPPad Bits and Bytes for December 3

Posted on December 3, 2010 by Bill Winterberg in Bits & Bytes

Bits and Bytes was on break last week for the Thanksgiving holiday, so this week you’re getting two week’s worth of technology updates in one.

Here are the stories of interest from the last two weeks:

Technology Survey 2010 from Financial Planning Magazine

This year marks our fourth anniversary, and there is plenty to be excited about. With our growing sample size and a historical record to draw upon, we think we are better positioned than ever to offer readers an analysis of the state of technology within our industry.

Envestnet Launches Industry’s First Advisory Platform to Deliver Comprehensive Support for ‘Unified Managed Household’ at PRNewswire.com

Envestnet today announced the next generation of its industry-leading wealth management platform for advisors, the industry’s first advisory platform with truly integrated analysis, guidance and reporting for the emerging “unified managed household” (UMH) advice model. Advisors employing the UMH model seek to address the client’s entire financial situation through focus on effective deployment of all of the client’s investment assets, not just those managed by the advisor.

eFileCabinet rolls out latest version of SecureDrawer from InvesetmentNews.com

eFileCabinet, Inc., a content management provider (which includes document management), announced availability of version two of its SecureDrawer web-based client portal service.

NetDocuments Gets a Makeover at the NetDocuments SaaS Blog

In the spring of 2011, NetDocuments users will get a new user experience. Without sacrificing any of our industry leading functionality and reliability, we have redesigned the user interface to improve navigation and simplify the management of documents in the cloud.

Shorter Links, Greater Impact at MorningstarAdvisor.com

As you scour the Internet for information on financial planning and wealth management, you often find articles and websites you want to share with clients and colleagues. When you post links to the information on your website, blog, or social network of choice, how do you know how much traffic those links generate?

EISI Upgrades Entire Product Line at FA-Mag.com

EISI, North America’s leading supplier of financial planning software to financial professionals, has announced upgrades to all three of its software packages: NaviPlan Select, Profiles Professional, and Profiles Forecaster.

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