From new ways to manage your 401(k) to the launch of a subscription-based RIA, we've seen a lot of interesting innovations come to light in wealth management this month. Here are the five headlines that caught our eye for June's Word on WealthTech.
With this collaboration, more than 2,400 Stifel advisors will be able to securely manage 401(k)s for over 200,000 clients through the Pontera platform as part of a personalized and comprehensive wealth management plan. Frankly, we're surprised that many advisors don't include 401(k) oversight management in their advisory offering. Clients expect them to help them make good tax decisions, and it pays for itself, so why not?
A valuation of this size brings with it the expectation of a custodial and wealth platform that generates high income in the future. We think the valuation and interest is justified by our real-world experience working with Altruist, and it's exciting to see an up-and-coming tech firm actually deliver in the traditional RIA space.
Envestnet's annual advisor technology conference focused on expanding platform integration and connecting the dots on their legacy technology. We were delighted to attend and noticed that advisers were eager to attend the sessions on technology consolidation, investment and technology customizationimproving productivity, serving the HNW market and how they can incorporate retirement into their practices.
iCapital can now expand its data management and reporting capabilities to create an enhanced technology experience for clients in the wealth management, family office, endowment and foundation segments. This is a great recognition of the firms that support the growing technology and operations needs of advisors. iCapital's commitment to both the technology and the ability to manage complex alternative assets is a masterstroke, making them infinitely more valuable to high net worth firms up and down the investor spectrum from mass wealth to UHNW.
NerdWallet Advisors, a subscription-only RIA, has distributed to a small number of clients. If done right, NerdWallet has a tremendous opportunity to impact the emerging mass affluent and affluent space from Gen Z and beyond. The subscription-based planning fees we've seen promoted by some financial planning groups have so far been a little slow to take off, so is NerdWallet's little litmus test of a subscription-based model vs. a fee-based model? Will it set a new standard for the next two generations, moving away significantly from the asset-based fee we've had for several generations? And what was it about their research that led them to create a subscription-based versus fee-based model?
Exciting times continue for our industry. With summer just around the corner, we hope you enjoy some time to recharge. We'll keep reading the headlines and report back in July.