2/20/2020 TOP TECHNOLOGY TRENDS 2020 AND BEYOND Joel Bruckenstein, CFP-President, T echnology T ools for T oday M&A ACTIVITY AMONG TECH VENDORS WHAT ARE THE IMPLICATIONS FOR YOU? VENDOR M&A ACCELERATES Envestnet has been an acquirer for years MoneyGuidePro Folio Dynamics Yodlee Tamarac And more… The Goal: A one stop shop for advisor’s technology needs 1
2/20/2020 OTHERS EXPAND THEIR REACH Morningstar does portfolio management and rebalancing Morningstar now entering the financial planning market Fidelity Financial planning through eMoney Entry level portfolio management through eMoney Advyzon and Circle Black offer platforms Orion buys a TAMP and a financial planning software product ONE IMPACT OF THESE CHANGES The traditional wisdom of “best of breed” technology stacks is being challenged These firms believe advisors will value convenience and integration above other considerations Firms that had been partners in the past now competing Is there a disincentive to cooperate with former integration partners? IS M&A CONSTRAINING CHOICE? The Schwab/TD Ameritrade merger will put constraints on choice Schwab will have a commanding market share What will happen to VEO One? Why is the VEO ecosystem so important to all RIA’s? 2
2/20/2020 OTHER POTENTIAL M&A TTO WATCH What About Orion? Will a buyout impact choice? Is Envestnet too big to be bought? What would that mean? Any other potential mergers that could disrupt things? ON A MORE POSITIVE NOTE Innovation is alive and well Some new firms that launched at T3 Advisor this past week fp Alpha Summit Wealth ACT Analytics PlantechHub SOME OTHER NEWER FIRMS/PRODUCTS Altruist-New custodian Apprise Labs-Advanced estate planning, risk mgt. and retirement planning D1d1t-Enterprise Wealth Management Platform Moxtra-Client portals Benjamin-AI assistant inTELOSfp-Financial planning software OpenInvest-direct indexing at scale 3
2/20/2020 INNOVATION IS NOT DEAD IN OUT INDUSTRY But the road for start-ups to gain acceptance become more challenging ARTIFICIAL INTELLIGENCE AI IS COMING TO YOUR OFFICE SOON Some industry firms already have adopted AI fp Alpha-Acts as a sort of virtual assistant Benjamin-AI assistant created for advisors by advisors CAIS-AI learning platform to learn faster, remember more. Targeted education Salesforce Einstein-What clients are most likely to fire you? Some of your vendors already use AI to support you This tech will trickle down to you 4
2/20/2020 DATA & PRIVACY WHO OWNS THE DATA? This really matters Your access to client data is impacted by this Account aggregation We are losing this battle We need to advocate for change BLOCKCHAIN WHAT’S ALL THE BUZZ ABOUT? 5
2/20/2020 WHAT YOU NEED TO KNOW IN ONE SLIDE Blockchain is a distributed ledger with enormous potential Bitcoin is but one use case Much of the buzz has died down, but the potential is there Almost every large firm I deal with has some blockchain pilot I am less enamored with bitcoin But reportedly 70% of clients ask about it You need to have the answers Crypto-currency scams cost investors at least $4.3 billion in 2019 CYBERSECURITY MOST INDEPEN DENT RIA F IRMS ARE WOEFULL Y UNPREPARED LACK OF ENGAGEMENT WITH CYBER VENDORS otal Market penetration by 3 rd party cybersecurity vendors is 6.84%* T Up from 5.68% last year, but numbers are not comparable Average category rating of 8.11* is ridiculous *Source-2020 T3/Inside Information Technology Survey 6
2/20/2020 PASSWORD MANAGERS 41% of respondents use a password manager Of those, almost ½ use LastPass LastPass also has the highest user satisfaction ratings T3 FINDINGS Independent firms are at greatest risk Virtually every independent firm has some gaps in cyber preparedness d party vendors don’t fully understand what they do Many who use 3 r T3 CYBER UNIVERSITY The first independent cyber course for RIA’s Full day of study Will need SEC and state education requirements Will grant CFP Board CE Credits Dallas, TX area March 4, 2020 CTO, CISO, and/or operations chiefs should attend https://www.technologytoolsfortoday.com/ 7
2/20/2020 CYBERSECURITY AS A DIFFERENTIATOR Prospects are asking about cybersecurity, especially HNW ones What are you doing to protect my data Do you have cyber insurance? Leading firms are providing cyber education to their HNW clients TITLE LOREM IPSUM DOLOR SIT AMET orem ipsum dolor sit amet L L orem ipsum dolor sit amet 2017 2018 2019 L orem ipsum dolor sit amet 8
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