Move over millennials, Gen Z is taking over—and in this edition of Advisor Tech Talk, we’ll take a moment to consider how the youngest generation in the workforce is—yet again—going to change wealth management forever.
To aid us in our thinking, we have a handy new piece of research about consumer adoption artificial intelligence from BMO, ,which found that more than one-in-three Americans across all generations, 37%, are using AI to help manage their finances (we’ll discuss this finding in more depth in our AI and Finance column later this week).
Gen Z, however, is statistically the most likely out of all generations, even middle-aged digital-native millennials, to use AI in their daily lives to complete tasks, including personal finance and wealth management tasks.
Remember that as millennials entered the workforce and matured, they moved most of the consumer-facing wealth management activity out of offices and onto the web, and then off the web and into apps. These clients entered wealth management as digital natives, already comfortable with receiving information and advice from search engines like Google and interacting with people via text, e-mail and chat.
Gen Z already looks at the web we’ve all grown to know and use over the past two decades as an antique. Search engines that we’ve leaned on for years are already being rendered obsolete by AI. If advisors and wealth managers want to attract this next generation of wealth as clients, the financial services industry needs to meet Gen Z where they are technologically speaking—and they’re way, way, way into AI, according to BMO’s survey.
BMO found that Gen Z are the most likely to ask AI questions about topics they are interested in: 82% of Gen Zers are using AI to answer their questions. Overwhelming majorities of Gen Z respondents in BMO’s survey are also using AI to generate content and create schedules and plans. Three-fifths of Gen Z, 61%, are using AI to manage their finances and investments.
If the industry is bent on giving its consumers what they want, how they want it, then the future of financial services is inevitably an automated one where most decision-making roles will be staffed by artificial intelligence, not human beings.
Let’s get to more technology headlines.
AdvizorStack
AdvizorStack, the company that delivers a customizable, integrated and cost-effective wealthtech platform to fit the unique technology needs of RIAs, announced the appointment of Jennifer Spencer as Chief Operating Officer (COO). Spencer will report directly to CEO Paul DeMaio and will engage in all aspects of the company as a proactive leader.
Spencer will oversee the transition of RIA firms, manage data processes and train teams. Additionally, she will be responsible for overseeing RIA accounts to ensure continuous client satisfaction and facilitate advisor transitions, especially within the Schwab network. Spencer will also collaborate on developing Product Requirement Description documents and enhancing the AdvizorStack Salesforce platform.
Before joining AdvizorStack, Spencer served as COO at Hext Financial Group where she managed the firm’s P&L, all aspects of human resources and human capital and provided direction on sales methodologies and strategic initiatives aimed at scaling the firm. Prior to that, Spencer held the COO role at White Picket Team Management. She earned her Master of Business Administration from the Pepperdine Graziadio School of Business.
Arch
Arch, a digital admin platform modernizing private investment operations and investor communications, announced it has passed more than $100 billion in private markets assets on the platform. To keep up with the rapidly growing universe of alternative investments, Arch has more than doubled its headcount, adding a key new hire to lead sales and partnerships. In addition, Arch added several product enhancements to support investors and advisors in their quest for higher returns and the diversification of private markets. These strategic moves emphasize Arch’s commitment to building the digital infrastructure required for seamless private markets investing, delivering on its plans for expansion and product development following its recent $20 million Series A funding.
Arch currently serves thousands of families and institutions across more than 270 clients, including single- and multi-family offices, private investment firms, institutional allocators, banks and wealth managers. Notably, Arch also works with four of the world’s largest investment banks. Its client- and advisor-facing platform automates the manual work traditionally associated with investing in and managing alternative investments, providing a superior digital client experience. By aggregating data and documents, Arch offers unparalleled insights into a diverse array of private investments.
Following the recent launch of next-generation digital tools, which includes artificial intelligence (AI) summaries, financial visualization and EIN Tax Validation, Arch is bolstering its product set with a focus on bringing institutional quality tools and insights to family offices, investment advisors and bank wealth management teams. Most recently, the team has introduced Portfolio Look-throughs, a new feature that presents each fund’s underlying portfolio in an aggregated view. Look-throughs enable advisors and investors to demystify underlying holdings with simple visualizations of their direct and indirect exposures to portfolio companies. For example, clients can see how much Stripe or SpaceX they hold, both directly and through funds. This enables easy comparisons of company valuations across different managers, all in one consolidated snapshot.
Docupace
Docupace, a provider of software to streamline back-office operations of wealth management enterprises and financial advisors, announced a strategic majority investment from Genstar Capital (“Genstar”), a private equity firm focused on investments in targeted segments of the financial services, software, industrials and healthcare industries.
This significant investment makes Genstar the majority investor of the fast-growing technology innovator. FTV Capital (“FTV”), which made a growth investment in the company in 2020, will remain a minority investor in Docupace.
Under FTV’s ownership, Docupace has grown into a leading platform for wealth management operations. Each workday, more than 130,000 electronic documents are processed and delivered, more than 62,000 work items are completed and nearly 10,000 new client accounts are opened using Docupace products and solutions. With the acquisitions of jaccomo and PreciseFP in 2021, the company expanded its platform solutions into compensation, compliance, and digital client data gathering, respectively.
Dynasty Financial Partners
Dynasty Financial Partner announced the promotion of Leslie Dentinger Norman to Chief Technology Officer. Previously, Mrs. Norman served as Deputy Chief Technology Officer, responsible for directing the strategy and delivery of the technology solutions used across the Dynasty Network.
In July 2024, Dynasty announced that it had surpassed $100 billion in assets on its platform. 55 independent firms and over 400 advisors comprise the Dynasty Network. With average assets under management (AUM) per firm of $1.8 billion and average assets per advisor of approximately $250mm, the Dynasty Network represents some of the highest AUM-per-firm and assets-per-advisor ratios in the industry.
In an industry where women account for barely 20% of a typical firm’s employees, Dynasty is proudly 42% female, and committed to promoting women’s unique and innate talent for advisory work. Dynasty’s own Women’s Network supports women in the wealth management industry and inspires more to join. In her new role, Mrs. Norman will be one of the highest-ranking female executives in the wealth technology industry.
FMG Suite
FMG Suite, a SaaS company specializing in marketing software and services for financial advisors, announced the launch of Marketing Suite Business Edition, a comprehensive product designed specifically for the needs of mid-market financial firms including RIAs, banks, and credit unions. This new offering addresses the unique challenges faced by mid-sized institutions in managing multi-advisor marketing efforts, compliance, and client engagement.
FMG’s market research identified a significant opportunity within the mid-market segment. Existing offerings, geared toward smaller retail or larger enterprise clients, often fall short for mid-sized firms. Marketing Suite Business Edition bridges this gap by providing essential tools tailored to their specific needs and complexities.
Marketing Suite Business Edition offers a cost-effective solution compared to enterprise-level options. It simplifies complex features and provides the tools necessary for efficient operation and growth within the mid-market segment. Marketing Suite Business Edition is available for a monthly fee of $1,199 with a one-time setup fee of $1,500.
Franklin Templeton
Franklin Resources, a global investment management organization operating as Franklin Templeton, has selected Aladdin® by BlackRock to unify its investment management technology platform across public market asset classes.
Aladdin is a comprehensive technology solution that supports the entire investment management process across multiple asset classes and will also aid in the simplification of Franklin Templeton’s operation and reduction of long-term capital expenses. Its distinctive features will enable Franklin Templeton to meet the diverse needs of its specialist investment managers and further support its growth initiatives.
The Aladdin technology will enhance the investment lifecycle on a single platform by providing an investment book of record to enable scale, provide insights and support business transformation, while preserving the autonomous investment processes of Franklin Templeton’s specialist investment managers. Beginning in fiscal 2025, the transition will be phased over multiple years and will be seamless to clients.
iCapital
Perigon Wealth Management, LLC (“Perigon”), a rapidly growing independent wealth management firm with offices across the country and approximately $7.75 billion in client assets as of March 31, 20241, announced a partnership with iCapital.
iCapital’s technology platform and operating system help Perigon’s financial advisors meet their clients’ growing demand for quality private market vehicles and provide access to a diversified range of alternative investments, including private equity, private credit, hedge funds and real assets.
iCapital’s operating system seamlessly integrates with Perigon’s existing platform and tools to automate and streamline the private markets investment process.
Lionpoint
Lionpoint, an Alpha Group company and global consulting firm specializing in alternative investments and BlueFlame AI, a generative AI platform for alternative investment managers, announced a strategic partnership to support mutual clients implementing and expanding their firm’s AI strategy. Lionpoint’s parent organization, Alpha FMC, also announced that BlueFlame AI will be a featured partner for their new AI & Data Science Innovation Hub. This groundbreaking initiative aims to accelerate the adoption and integration of AI within the sector.
Alpha’s Hub monitors and researches the latest innovations in the industry and changes in leading technology platforms and applications, helping clients leverage the most appropriate technology architecture across their landscape. Clients can use the Hub to join Alpha’s consortium and gain access to AI experts, industry insights, blueprints and best practice to help them achieve tangible results and outputs targeted to industry-specific use cases.
By leveraging the combined expertise of BlueFlame AI and Lionpoint, users can leverage a platform for innovation, knowledge sharing, and best practices in AI applications in alternative investments.
Savvy Advisors
Savvy Advisors, a registered investment advisor (RIA) affiliated with Savvy Wealth, Inc. (“Savvy Wealth”), announced the hiring of six new wealth managers: Brad Morgan, CFP®; Alex Austin, CFP®, WMS℠; Brian Boswell, CFP®; Colin Farr, CFP®; J. Nick McLaughlin; and Michaela Sullivan, CFP®. Leveraging Savvy Wealth’s proprietary technology-powered advisor platform, the firm’s advisors are empowered to scale their practice and provide high-net-worth clients with a modern experience.
Morgan joins Savvy from Mariner Wealth Advisors, where his team managed more than $300 million in client assets. He specializes in serving current and former Procter & Gamble (P&G) employees and helping them navigate the complexities of the company’s unique compensation and retirement options. Morgan’s move to Savvy cements the firm as a platform complete with solutions that can support advisors with large client bases and high assets under management (AUM).
Prior to his decade-long tenure as an advisor, Morgan was a senior engineer at P&G, and comes from a multi-generational P&G family. Bringing his practice to Savvy, he reunites with former Mariner colleague Nate Kunkel, CFP®. The duo has vast experience in solving various tax, charitable, stock option, estate, income and investment planning needs of P&G employees, and will continue to focus on serving P&G executives and staff.
SEI
SEI announced that Michael Lane will join SEI on Sept. 16, 2024 as an Executive Vice President and Head of Asset Management, reporting to CEO Ryan Hicke. In his role as a member of the Executive Management team, Lane will be responsible for the business and growth strategy for the company’s Advisor and Institutional businesses in North America, as well as leading SEI’s investment management teams globally.
With 35 years of industry experience, Lane most recently served as Head of iShares U.S. Wealth Advisory at Blackrock, overseeing revenue growth, client expansion, solution development, implementation, and due diligence across multiple products and asset classes. Prior to joining Blackrock, he held a number of roles at Dimensional Fund Advisors, leading the development of the retirement, broker-dealer, bank, and TAMP businesses. These roles included Global Head of Strategic Retirement Initiatives and CEO of Dimensional SmartNest LLC, which provides managed account solutions for defined contribution plans. Lane also served as a leader at TIAA-CREF, AEGON Financial Services Group, and Dreyfus, among others.
Lane is an accomplished author of three books, as well as academic and industry articles. He holds a Bachelor of Arts in political science from Binghamton University in New York, where he serves as an Executive Committee member for the Binghamton University Foundation Board and received the Medal of Distinguished Service. A former college tennis athlete, Lane is an avid player.
SMArtX Advisory Solutions
SMArtX Advisory Solutions, an innovator in managed accounts technology, announced the strategic appointment of Brian Watkins as Executive Vice President (EVP), Head of Client Success. This move underscores SMArtX’s unwavering commitment to attracting exceptional talent that fuels its innovation engine and propels its remarkable growth trajectory.
Watkins’ arrival marks a significant milestone in SMArtX’s talent expansion strategy.
Reporting directly to Pincus, Watkins will spearhead all client success functions, including implementations, support, and servicing. His extensive experience and proven leadership skills will be instrumental in scaling SMArtX’s client success infrastructure and ensuring seamless service delivery.
