The Word on WealthTech for July 2024


There were a number of good titles to choose from this month. We love to see the industry think creatively in the use of technology. We narrowed our focus to five common headlines for July's WealthTech Word to share our perspectives on the impact for the industry.

This launch brings institutional-grade private markets investing to Mercer's clients. Initially, upon seeing this news, we had hoped that it was open to the general public, but it appears to be an internal platform (which is unusual). This will certainly help them in their recruiting efforts and strong relationships with their current advisors. And this may be an emerging trend where large and well-known consulting businesses promote their technological advancement as a marketing tool.

Orion and its strong technical team, which includes past hires and advisory roles of Natalie Wolfsen and Charles Goldman, continue to impress us. We love the fact that they hire tech-savvy leaders from within our industry. Ron brings a background in ultra high net worth, which is notable given their power in the mass affluent market. This could be a sign that Orion plans to compete more aggressively with BlackDiamond, Addepar, Arch and other UHNW service technologies.

Addepar will be the exclusive portfolio data aggregation and performance reporting solution on Corient's portfolio of more than $160 billion in assets. This is good news all around. It signals that Corient is serious about its technology and making it a competitive lever for firms that join it. It also signals that Addepar can manage $100+ billion wealth management firms and scale competitively on price and service to very large firms. Other large aggregators should note that Addepar is not just for single family offices or businesses serving UHNW. It's a compelling tool that can work at scale and be the backbone of a large aggregator platform's technology stack.

Envestnet will work with some of the world's largest asset managers to build customized investment strategies that advisors can use to meet the specific financial goals, risk tolerance and personal circumstances of individual investors; and deliver this at scale to over 109,000 advisors on its platform. They are expanding from a TAMP/model marketplace to helping asset management firms better serve advisory businesses much more directly than was previously possible. We see this as a smart move by Envestnet and really interesting for Fidelity and others to have Envestnet's capabilities to offer to their customers in a cost-effective way. It's a win-win for larger asset managers and smaller advisory shops.

Tools like Jump are interesting and well-proven uses of AI in wealth management because a huge amount of information, action and intelligence flows into or through firms every day and few firms currently collect it. Having a tool to highlight meaningful aspects of counselor-client conversations takes a lot of the work out of the counselor's post-call documentation. May provide access to additional features for subsequent emails and content. The concept of AI helping advisors translate customer conversations and maximize their time and integrate it into their CRM is pretty cool. It can be implemented quite quickly and provides a quick value.

Along with summer, we expect wealth management headlines to heat up! We'll be back with new views of all the stock in August.



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