Unlock Your Access for the Data Webinar: Winning Data Teams: Getting Started and Scaling Your Team aired November 15, 2022

Industry focus. Relentless focus on gathering knowledge. A burning desire to stay up-to-date on the latest technology trends in wealth management.

These are all of the reasons that I spent the week in Fort Lauderdale attending the T3 Advisor Conference and did not go home early to be at the Eagles Super Bowl Parade. Forty years of disappointment, frustration and pain was set aside to focus on learning, tweeting and schmoozing.

I know, I know. You’re thinking how selfless and dedicated I must be to give back to the community like this.

Rob Major on Twitter

Excited for #T32018. Florida has been beautiful – check out our view from yesterday.

I don’t want to rub it in, for those of you who had to deal with general Winter misery, the Florida weather was certainly an awesome benefit.

Tom Moysak on Twitter

Can’t wait to get going! #T32018

I have been a regular attendee at both annual T3 conferences, but this one was the biggest with the most attendees, almost 700, according to Joel Bruckenstein. The number of vendors was boosted as well.

You know that vendors must have been begging for sponsorships since Joel had to add another level above the Platinum tier!  Hopefully, this is a sign of a healthy, growing market for wealth management technology and services and not a peak.

Downtown Josh Brown on Twitter

Checking out @ricedelman presentation at #T32018 “Most of the advice you are giving your clients is wrong, fatally flawed and possibly it’s criminally negligent.” Ric believes lifespans will no longer allow for retirement, and that we’ll all have several careers.

Ric Edelman certainly knows how to grab advisors’ attention!  The co-founder and chairman of Edelman Financial Services, a registered investment advisor (RIA) based in Fairfax, VA, was the opening keynote speaker at the conference and did not disappoint.

In his rapid-fire style, he covered a wide range of technology innovations that will impact our lives and disrupt the way advisors think about servicing their clients.

Ian McKenna on Twitter

Everyone in #lifeinsurance and #underwriting should see @ricedelman presentation on #longevity current clients will live to 120 years, all current #financialplanning should allow for this today #t32018

Edelman, whose firm manages over $18 billion from 30,000+ clients, focused heavily on medical advances that will extend human lifespans.  “By the time you’re 95 you’ll be healthier than when you were 55,” he exclaimed due to improvements in healthcare.  I’m not sure if he was referring specifically to this audience, but it’s one thing to extend the average life span but quite another to do so and improve people’s heath as they age. That would be quite a feat.

Robb Baldwin on Twitter

The most important innovations of all time: Fire, The Wheel, The Internet and The Blockchain @ricedelman #T32018 @t3techhub

This was the boldest prediction Edelman made, in my opinion.  I’m an advisor to a company developing blockchain solutions, so I am a believer in the underlying technology.  But I don’t see it being as much of a game changer as the advent of fire. Maybe a close second.

Blockchain certainly has received a lot more hype than fire ever did. Probably because the media wasn’t consumed with the 24 news cycle back in pre-historic days.

Viviana Bruckenstein on Twitter

@AdvisorEngine Rich Cancro, Your clients care about their online experience and so should you! #T32018

These stats were probably among the drivers of AdvisorEngine’s acquisition of online marketer Kredible. CEO Rich Cancro has a vision of his firm moving beyond just technology to help advisors grow they business by improving other key support services such as marketing and branding.

Since their revenue is based on their clients’ assets, facilitating their growth is a win-win.

Craig Iskowitz on Twitter

Offering deep integrations w/ partners delivers a better user experience than building an end-to-end platform @AaronKlein @Riskalyze #T32018

This comment is certainly up for debate. Running a consulting firm, I see clients and vendors on both sides of this debate.  And they sometimes switch sides.

Riskalyze has been building out a wealth management platform that is laser-focused on a specific segment of the advisor market that prefers simplicity and ease-of-use over comprehensive functionality and complexity. Since they do not appear to be building an all-in-one product, relying on integration partners to deliver key features is an essential component of their strategy.

However, it has rarely been possible, in my experience, to deliver a seamless, elegant user experience through integration of disparate systems without some kind of overlay software.  Look for Riskalyze to continue trying to be the glue that hold together many other vendor’s products and control the advisor desktop presentation.

Craig Iskowitz on Twitter

New portfolio correlation feature from @Riskalyze Premier is innovative and turns the standard visuals on their head @AaronKlein #T32018

I’m not sure that this graphic will appeal to advisors or replace the standard correlation charts. But we need more innovative ideas in wealth management and it’s important continually push the envelope and be ready to pivot away from ideas that don’t work and double down on those that do.

eMoney Advisor on Twitter

64% of advisors agree that client demand for planning is increasing. #T32018

My advice to every vendor giving presentations at conferences: We need less marketing fluff and more statistics!  In just the past four years the number of clients receiving comprehensive financial planning advice shot up from 33% to almost 50%, an increase of 49%!

As always, it was most likely a combination of factors that was lead by the Department of Labor (DOL) Fiduciary Rule. Advances in financial planning technology also helped as new entrants to the market like Advizr and RightCapital introduced more intuitive tools that have significantly reduced the time required to generate a plan.

eMoney Advisor on Twitter

For some advisors, the push to planning can be a struggle. And even though the advisor may be willing and capable to provide comprehensive planning services, they need an efficient and scalable way in which to do so. #T32018

63% of advisors say that lack of integrated technology is a challenge to financial planning.  It seems like this same problem has been going on forever and is not getting any better. Even with all of the advances in API’s and connectivty this is much higher than I expected. Especially considering that eMoney Advisor has been one of the leaders in building integration partnerships. (See The Battle for the RIA Technology Integration Hub)

Craig Iskowitz on Twitter

Advisors must choose which technology vendor controls their prospecting & client onboarding processes: @Riskalyze or @emoneyadvisor #T32018

Of course, they aren’t the only two vendors looking to control the advisor experience. It seems that every software provider is gunning for center stage. This includes CRM, financial planning, risk profiling, portfolio management and custodians.

Many of the banks, broker-dealer and RIA’s that we work with made this decision seemingly on the fly (before engaging us), with no strategic thought as to the future implications to their business.  My advice is for CEO’s to reign in the many competing stakeholders and enforce a decision-making process on the rebellious forces currently battling within the firm. Otherwise, you’ll end up with power-hungry fiefdoms that work against the best interests of the company.

Ian McKenna on Twitter

Another new service from @MoneyGuidePro Bliss retirement compatibility game lets clients work out what they really want in a fun way #T32018

Gamification is a buzzword that has lost a bit of its hype, but is sneaking back into many vendor’s offerings.  It is an excellent concept that can improve usability and elicit better, more accurate responses from both clients and advisors.

A few of the psychological underpinnings of gamification include: building an emotional connection, offering the freedom to fail and increasing user engagement.

Envestnet | MoneyGuide on Twitter

T32018: @MoneyGuidePro & MX partner to provide #advisors & their clients with #DataAggregation & personal financial management options. https://t.co/bYJIFt75NR #FinTech #DataAggregation #PersonalFinance #FinancialPlanning #Integration #News @t3techhub

MX has flown under the radar for the past few years as a provider of multi-sourced data aggregation services.  While they have presented at a few conferences, they keep relatively quiet and keep signing up major clients like MoneyGuide Pro and Fiserv Investment Services.

Joel Bruckenstein on Twitter

New @MstarAdvisor new Office Cloud looks really good #T32018

We’ve been waiting for this update to the cloud version of Morningstar Office for a while now. The integration of their recent acquisitions, ByAllAccounts and TRX Portfolio Rebalancing, should give the iconic advisor application a nice boost in functionality and could help fend off new entrants in the space such as AdvisorEngine, RobustWealth and Oranj.

Orion Advisor Tech on Twitter

With ASTRO, you can optimize toward a current target, optimize for taxes, and learn whether your positioning makes sense for today’s market. #T32018

Advisor Strategy Tax Return Optimization (ASTRO) is a powerful portfolio optimization tool.  While I was impressed with the functionality as they described it in their presentation, I was not impressed with the presentation itself.  The message was muddled and the product benefits and ease of use were not satisfactorily explained (in my opinion).

Craig Iskowitz on Twitter

Advisor Strategy Tax Return Optimization (ASTRO) from @orionadvisor allows advisors to increase projected excess portfolio Alpha by triangulating taxes w/ target model and generating recommended position changes @orionadvisor #T32018

I tweeted almost the exact same thing as Orion did, but I think my picture was way more interesting.

Orion Advisor Tech on Twitter

Joe Smith of @CLSInvestments estimates that a tax optimization tool like Astro would normally cost his firm upwards of 250k per year. Astro provides CLS with tremendous cost savings as well as time savings. #T32018

All this for just $50/account/year? Seems like an incredible deal!  But does ASTRO really do everything that a $250K application does? And do most of Orion’s clients have the same needs as CLS Investments when it comes to portfolio analytics?

Ian McKenna on Twitter

Six ways #blockchain is disruptive @MagdaRamada #T32018

My take on these:

Check out my new blog, Blockchain Today, if you’d like to read more about the space.

LifeYield on Twitter

LifeYield, LLC announcing our new Taxficient Score at #T32018 – the gateway to growing your business. Make sure you visit us at booth #102 for an overview! https://t.co/Y2aM6TR5G2

I spoke with LifeYield’s CEO, Mark Hoffman, who explained how they coined the term “taxficient” to avoid legal issues that could arise from making claims about the tax efficiency of their software. Now they can report on the “percentage of taxficiency” without running afoul of regulatory or overzealous plaintiff’s attorneys.

Craig Iskowitz on Twitter

There isn’t enough proactive attention placed on security by RIAs -ZoharSwaine #T32018

Any vendor that is looking to up their cybersecurity game should reach out to FCI Cyber for their managed cybersecurity and compliance tools.  (See Is CleverDome the Holy Grail of Cybersecurity?)

Craig Iskowitz on Twitter

You should be monitoring your client portal & reach out to any clients who are logging in frequently during bad market conditions. It can save your relationship. -EricClark @orionadvisor #T32018

If your platform cannot provide you with real-time stats on client logins, you need to be looking for a new vendor. This type of monitoring will be critical for advisors to maintain their client relationship during periods of increased volatility.

Mark Schoeff Jr. on Twitter

@Fidelity reveals three new big-data tech tools https://t.co/ZFmrTQG48R by @ryanWneal #T32018

In other words: Fidelity’s advisor workstation was about a decade behind in data aggregation and is finally catching up thanks to the eMoney acquisition.

Craig Iskowitz on Twitter

James Liu shows chart of annual returns and Pull-Ups is that helps #advisors explain volatility to clients to stay the course @clearnomics #T32018

Clearnomics has some very descriptive charts that advisors can use to initiate conversations with clients and make it easier to explain current market conditions and show them in relation to past years.

Ian McKenna on Twitter

Very noticeable younger advisers do not see value on CRM but very focused on value of planning is this big news for the #FutureofFinancialAdvice @BobVeres @FinTechie #T32018

Why do young people insist on learning everything the hard way?  It took me a while to realize that my business was not going to grow the way I wanted to without a conscious and organized client management process built around a CRM.  The 77.56% of 1-5 year advisors who don’t use CRM will soon learn this lesson as well.

Carolyn McClanahan on Twitter

Technology can tell how you feel through facial recognition. With the increasing devices always watching us, retailers can tell what we are thinking. @danielle_fava #T32018 (Wow)

Last year, Cetera added a facial recognition tool to their advisor technology stack that can help decipher clients’ emotional state. It is only one tool though and advisors should use the data along with what they already know about their clients when managing their client relatrionships.

Sayer Martin on Twitter

@danielle_fava gem on future planning tools: “Let’s swab your cheek and see how long you’re gonna live.” #Telomeres #T32018

I don’t think this is too far off the mark as far as disruptive future technology goes.  We’re learning more about how a person’s DNA can indicate susceptibility to future diseases.  How soon will life insurer’s require a DNA test before issuing a policy?

Craig Iskowitz on Twitter

One of the most intuitive & holistic reporting tools for #advisors on the market @AssetMapLLC #T32018

I really like Asset Map’s presentation and I was bugging Adam to get the consumer version running. I want to plug in my Vanguard accounts.

Craig Iskowitz on Twitter

Demo of the RIGEL chatbot app integrated with @SlackHQ by Utah Valley State & @orionadvisor #T32018

Happy to see T3 and many vendors sponsoring college student contest to develop new wealth management applications.  This chatbot allows clients to check their portfolio balance and ask questions about the market. It was integrated with the Orion Advisor platform.

Ian McKenna on Twitter

Nothing less than I would expect, exceptional presentation from @Jason_Gordo @United_Capital stunning customer communication and management software #T32018

United Capital has developed a well-received suite of applications including Money Mind Analyzer, Honest Conversations and Guidebook that deliver an intuitive, infographic-rich client experience. (See The Indispensable Advisor by Joe Duran)

Ian McKenna on Twitter

Fascinating to look at who are the most POPULAR custodian @BobVeres @FinTechie #T32018

While I do love statistics, there also needs to one some context around them.  What is the difference between a ranking of 8.12 and 8.07, besides .05?  Is it weighted based on the total number of advisors or assets?  Is it a fair comparison between Schwab with $1 trillion in AUM and Cambridge with $120 billion and how many advisors responded from each?

Ian McKenna on Twitter

Wide variance CRM systems @BobVeres @FinTechie suspicion of some #FakeNews or #Putin manipulating survey #T32018

This is just plain shocking. Every survey I have seen has Wealthbox in the single digits.  They suddenly jump to 23%?  You use compare number of firms as an indicator of market share. It has to be number of advisors.

MichaelKitces on Twitter

@ianmckennaftrc That’s not a #FakeNews issue. It’s a sampling methodology problem. Long established that open survey links leads to flawed results, as companies justifiably encourage users to participate & it becomes a voter turnout issue. @BobVeres @FinTechie #T32018

Michael makes an excellent point here. I would suggest future surveys use a random sampling of advisors instead of self-selection.  Right now we only know which companies sent out the most emails to their user base with a link to the survey.

AdvisorEngine on Twitter

Thank you to @FinTechie for an amazing #T32018! And thank you to everyone that stopped by the craft beer tasting to say hi. CC: @craigiskowitz @t3techhub

You know what they say about all work and no play.

T3 Advisor Conference

I felt that this conference was one of the best that Joel has run based on the number of attendees, breakdown of advisors versus vendors and quality of speakers. Everyone I spoke to had nothing but positive feedback, with the exception being the long lines we had to wait in for the craft beer tasting.

As I was reviewing my notes from this year’s T3 Advisor Conference, I realized that I have so much content, I can write a few more blog posts that focus on specific speakers and sessions.  I had to keep stopping myself to write too much in this post, since I wanted it to be a quick summary.

If there is anything that you saw here that you would like a more detailed article about, please let me know at craig@ezragroup.com.