Recently, our Founder Mike Kerins (CFA, FRM) and myself, Rick Frisbie, presented at the 2017 T3 Conference in Orange County, CA. The premise was that Digital Wealth Platforms inevitably must become fully integrated suites. Today, there are too many separate technology layers that will need to be consolidated for the RIA. No one should need to deal with different vendors for adjacent services that are able to be integrated. It is all an administrative migraine.
It is a bit like the 80’s when consumers had to buy a separate spell-checker to use with their word-processing software. Or the quaint, bygone (but inefficient & expensive) days before 401(k) providers ‘bundled’ the services of administration, custodial, employee communications, investments and record-keeping under one roof.
Basically, providers need to get from 1.0 to 2.0…
Digital Wealth Platform 1.0
(Crawling Cutely Along with the Basics)
- Automated Rebalancing
- Digital Account Opening
- Electronic Onboarding
- Simplified Financial Planning
Digital Wealth Platform 2.0
(All Previous Features and More – Beastmode!)
- CRM Integration
- Full Investment Model Customization
- In-kind Security Transfers Allocated within Institutional Quality Investment Frameworks
- Open Architecture by Fund Family
- Outside Account Data Aggregation
- Sophisticated Advisor & Client Dashboards
- Tax-efficient Rebalancing
- Volatility-efficient Rebalancing
Speaking of the 80’s, we had a great 80’s themed party at the T3 Advisor Conference. Thanks to everyone for the huge turnout! The band Pop Gun ReRun was superb.
Full disclosure: I am biased about RobustWealth’s tech stack. I think it is the best and most comprehensive. I also think it is important to do right by Advisors and their Clients. This means only charging when they turn on the automated rebalancing component. Not all DWP’s do this.
For those of you who joined us at our Squaw Valley Conference on February 26th to 28th, we hope you enjoyed yourselves. We had some fantastic speakers, events & of course, skiing! Click HERE for more information on this event.
In my next missive, I’m going to talk about the type of asset allocation frameworks that should be getting built and delivered for Advisors and their Clients. Sneak preview: what’s out there is too basic and not of the institutional quality that investors deserve!