If there was a theme to this week’s fintech news, it was that Wall Street has a texting problem.
The five largest banks U.S. investment banks expect to collectively pay $1 billion in fines to regulators for failing to monitor employees using unauthorized messaging apps, according to Bloomberg. Morgan Stanley became the latest on Thursday when it disclosed it would pay $200 million to settle charges with the Securities and Exchange Commission.
It’s probably just a matter of time before independent broker-dealers and registered investment advisers face enforcement for texting, and I don’t envy the task facing compliance departments. The sheer number of messaging apps has exploded, and it’s only gotten more difficult to monitor with employees working from home.
While some brokers are likely taking advantage of the apps for nefarious purposes, probably most are simply looking to communicate using a client’s preferred medium. Compliant texting services have been around for years, and firms need to get on board.
Also this week, InvestmentNews covered some big career moves in the adviser fintech world and dove into how difficult markets in the second half of the year could test many of the technologies advisers have embraced over the last decade. My editors also indulged my lifelong Star Wars obsession by allowing an extended metaphor between the Galactic Empire and exciting new adviser technology ecosystems coming from the wirehouses.
Below are the rest of the week’s fintech headlines.
Nationwide has selected Fidelity’s eMoney Advisor to provide financial planning software to its team of financial advisers, as well as digital marketing, which the company believes will be imperative for enhancing profitability. Nationwide’s advisers can use eMoney to “demonstrate the value of lifetime income and seamlessly integrate a guaranteed income solution into a client’s holistic financial plan,” Rona Guyman, senior vice president of Nationwide’s annuity distribution team, said in a statement.
The partnership is another win for eMoney, which has been courting large financial institutions after primarily growing among independent RIAs. The company previously signed a deal with Wells Fargo to deliver financial planning software to the bank’s advisers. However, some RIAs may be skeptical about how aggressively a firm like Nationwide pushes the use of insurance products in financial plans.
Cryptocurrency-for-advisers fintech Onramp Invest has closed a $7 million Series A round of funding and added a new investor, according to Citywire RIA. The funding reportedly gives Onramp a 24-to-30 month runway, which the company plans to use build out its sales and marketing teams.
Onramp’s survival was in question following the departure of former CEO Tyrone Ross and the cratering in crypto assets. While this funding gives the company additional time, it’s curious to see current CEO Eric Ervin point to marketing as a reason for the company’s struggles. Ross was a high-profile presence at industry events and in both traditional and social media, as was former head of community Caitlin Cook. They were early movers in the crypto-for-advisers market and attracted significant attention for an adviser fintech startup.
A month after laying off 10% of its workforce, Tifin has resumed its shopping spree, this time acquiring SharingAlpha, a community of 15,000 professional fund investors and analysts primarily located in the UK and Western Europe. Tifin plans to integrate SharingAlpha’s proprietary insights into digital tools on its Magnifi platform.
Tifin is consistently making headlines with acquisitions and funding announcements, but how many financial advisers are signing up for its technology? The company continues to buy smaller fintech companies, but its overarching strategy to bring advisers to its platform remains muddled.
Adviser fintech company Panoramix announced several upgrades to its billing technology — a new Advice Pay interface for advisers who aren’t directly debiting fees; grace amounts at the fee schedule and account level to help smaller investors; and enhanced payout structures, auditing and billing options.
Fee and billing technology is suddenly a hot area of adviser fintech, if recent consolidation and funding are any indication. Panoramix is hoping that these enhancements and its independence can help it grow market share among RIAs.
AXA Investment Management, an alternative investments manager with $200 billion in AUM, is partnering with alternatives marketplace iCapital to increase wealth managers’ access to private marketing offerings in France. Additionally, Mediobanca Private Banking will use iCapital’s technology to grant high-net-worth Italians access to private markets.
The ongoing growth of iCapital is astounding. The alts platform is valued at more than $6 billion and recently received additional investment from Bank of America. It will be interesting to see how the company’s international ambitions will expand opportunities for advisers in the U.S.
New chief executive Rich Steinmeier replaced Dan Arnold on October 1.
The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.
Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.
New survey finds varied levels of loyalty to advisors by generation.
Busy day for results, key data give markets concerns.
A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.
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