NaviPlan architect seeks to bring fresh AI-powered software to U.S. advisors: Wealthtech Weekly

February 8, 2023 1:18 PM

Leveraging artificial intelligence to give financial advisors back time.

That's the goal. That's the dream. And in 2023, it feels like countless fintech firms were making that promise to planners.

Now, another contender from the north with a blue-chip pedigree is tagging in and preparing to go head-to-head with AI-powered competitors in the United States.

Conquest Planning CEO Mark Evans

Conquest Planning

Canadian financial planning technology start-up Conquest Planning is celebrating the close of a Series A funding round that brought in nearly $18 million ($24 million CAD) to support its move into new markets.

Established in 2018, the Winnipeg, Manitoba-based firm relies on its proprietary, AI-based strategic advice manager to simplify the advice process by removing the trial and error that comes with building financial plans.

The funding round was led by Fidelity International Strategic Ventures; supported by existing capital partner Portage; and attracted a pair of well-known new investors in BNY Mellon and Royal Bank of Canada. Company leaders say the fresh capital brings Conquest's total funding to roughly $26 million ($35 million CAD) and will support Conquest's continued growth and investments in its platform user experience.

But the firm's push south of the border is supported by more than big money. It's backed by decades of experience and a proven track record. Mark Evans, the CEO of Conquest Planning, was also the architect of leading financial planning software NaviPlan.

Evans — who first broke into the fintech game when the elements that would become NaviPlan came to life in 1990 as a part of his graduate school research project — told Financial Planning that now is the perfect time for international expansion. Demand for tech-enabled solutions is on the rise, and Conquest's slate of supporters gives them a bigger shot of making an impact in new markets.

Evans said BNY Mellon's involvement will help Conquest establish a strong foothold in the U.S., while Fidelity International Strategic Ventures will help accelerate Conquest's penetration of the U.K. market.

Evans wants to reduce the amount of time advisors spend looking at screens, and increase the time on forging real life connections and important conversations.

"That's actually a big issue in the industry and has always been an issue in the industry. Because if you can actually build a plan with the client, and you can do so in a way that the client can follow along, you create more understanding," he told Financial Planning. "We're often flying around in the menus and moving sliders and doing this and that, and the client is sitting there going, 'I don't actually know what that means.' But they don't want to say anything, because they don't want to look like they don't know what is going on."

Evans is also passionate about using tech to make planners more present in the lives of their clients. He said that creating a financial plan strips hours away from advisors, and that doesn't include the time spent delivering and explaining it.

But with the help of an AI-based strategic advice manager, Conquest lets advisors kick out adaptable plans quickly that can be tailored and modeled to evolve along with end clients' changing life circumstances, objectives, priorities and risk tolerances.

"Conquest shares in our mission to maximize advisors' time and make quality financial advice available to all," said Ainslie Simmonds, the president of the Pershing X start-up business unit which announced a collaboration with Conquest in 2022.

She said the platform helps address a pain point for advisors, which is a lack of interoperability between customer relationship management technology and other critical elements of their tech stacks.

"Conquest's integrated solution is designed to streamline advisors' workflows, helping boost productivity, job satisfaction, and client service," Simmonds said.

Evans added that,"I think we've crossed that chasm, especially with COVID, and people realize technology is their friend. And they can't actually do any business unless they're tech savvy. Organizations that were paper based, had to become electronically based overnight."

Scroll down to get caught up on other recent fintech news you might have missed in our Wealthtech Weekly recap. And check out the previous edition here.

New Broadridge initiative offers free fiduciary training to women and people of color

A collaboration with Envestnet and Choir will soon allow Broadridge Financial Services to provide training to 100 financial professionals from underrepresented groups at no cost.

In an effort to increase the accessibility of training for women and people of color in financial professions, the global fintech provider is launching an initiative to extend its Fi360 Accredited Investment Fiduciary Designation Training to women and people of color for free.

An initial group of 100 advisors will receive training through the program, which is sponsored by Envestnet and supported by Choir, a California-based fintech company billed as the financial industry's first diversity-tech platform.

AIF Designation Training provides those responsible for managing or advising on, investor assets with a fundamental understanding of the principles of fiduciary duty, the standards of conduct for acting as a fiduciary and a process for carrying out fiduciary responsibility.

"Through this initiative, we hope to play a role in increasing the likelihood that underrepresented individuals will stay in financial services, and help them be recognized for career advancement opportunities," John Faustino, the head of Broadridge's fiduciary training, technology and analytics business, said in a statement. "Additionally, financial advisors from diverse demographic groups generally have a higher percentage of clients from those groups, and more AIFs in that equation will help increase access to advisors acting in the best interest of investors."

Candidates for the free training will be identified with the help of Choir, a platform that aims to lift the voices of the underrepresented in the financial services industry. candidates who want to be eligible for selection can sign up for Choir's Voices platform, which connects people of color, women and non-binary financial professionals with speaking and media opportunities. Interested individuals should also apply directly with Envestnet.

"Envestnet is proud to support the 401(k) marketplace — a market expected to triple by 2028 — and we are equally committed to the development and careers of women and people of color. With this, we believe there will be an even greater opportunity to support these populations in all of their financial needs," said Dani Fava, Envestnet's head of strategic development and an advisory board member for Choir. "That's why we're excited to collaborate with Broadridge and Choir on this initiative to help ensure that the number of AIF certifications mirrors growth in 401(k) assets. This program has great potential to extend the reach of valuable training for deserving individuals."

Choir co-founder Liv Gagnon said the partnership makes her hopeful for the future of financial services.

"In order for this industry to represent the world we live in, it's going to require intention and action from organizations like Broadridge and Envestnet who are committed to change at a systemic level," she said. "Making the AIF Designation Training more available to historically under-resourced individuals is a phenomenal idea and we're proud to be a part of the process."

InvestCloud adds new tax tools from JPMorgan's 55ip

Thumbnail for Video: InvestCloud Demo, In|Vest West 2018

InvestCloud, a company that builds cloud-based applications for financial advisors, is adding new tax tools to its growing platform, just in time for tax season.

This week, the fintech firm announced a partnership with software firm 55ip. Acquired by JP Morgan in late 2020, 55ip applies tax management technology to model portfolios.

The collaboration will integrate 55ip's tax-smart investment technology into the InvestCloud Financial Supermarket, formerly known as Tegra118, at a time when maximizing returns is crucial.

55ip has seen strong adoption for its ActiveTax technology which uses automation to elevate portfolios through automated tax-smart transitions, management and withdrawals. The new integration will make 55ip tools accessible to more than 400 wealth management firms with over 25 million accounts on the InvestCloud platform.

"Now more than ever, tax-efficient investing is front of mind for advisors as they try to squeeze out every marginal gain amid more volatile markets. There is no better time to enhance tax strategies to align with a client's long-term goals," Cheryl Nash, the CEO of InvestCloud's Financial Supermarket, said in a statement. "Integrating 55ip's powerful technology is an exciting step on our journey to simplifying product selection by digitizing the way advisors optimize for tax when constructing and managing client portfolios."

Paul Gamble, 55ip's CEO, believes automating tax-smart management is vital to delivering personalized portfolios at scale, and passing on more value to end clients.

"Partnering with InvestCloud means more advisors will have access to the tax-efficient tools they need to help clients reach their financial goals," Gamble said. "A fundamental part of our strategy is integrating with premier platforms serving advisors. Our partnership with InvestCloud is a major step on our path to become the industry standard for tax-smart management."

TradePMR to collaborate with FP Transitions to support succession and growth planning among RIAs

TradePMR, an Oregon-based technology and custodial services provider for RIAs, has announced a partnership with succession planning firm FP Transitions to provide integrated practice management and tailored consulting services to advisors on the TradePMR Fusion platform.

The new collaboration is designed to help ensure that breakaway brokers and existing RIAs establish the ideal entity design, organizational structure and modern compensation system in an effort to build a sustainable, enduring independent advisor business.

TradePMR founder and CEO Robb Baldwin said the issues advisors face today are complex and best served by a team that can take the time to develop a deep understanding of what makes each firm unique.

"The teams at FP Transitions and TradePMR view the world similarly," he said. "Advisors need white glove service to tackle the challenges of growth and eventually succession."

According to a Cerulli & Associates study released last summer, the wealth management industry faces an impending succession cliff as aging advisors retire. At least 26,000 advisors who will leave the workforce by 2030 are unsure of their succession plans.

Scott Leak,a certified financial planner and the director of business development for FP Transitions, said that despite the statistics, thousands of advisors who control potentially trillions of client assets continue to put off formal succession planning.

"Our experiences continue to show that optimal succession planning can take up to 15 years to design and implement," Leaks said. "Our data suggests that firms who have implemented succession plans have seen significant increases in value."

Amplifying advisors' growth through white-glove service and advanced technology is at the core of TradePMR's value proposition, while FP Transitions' legacy is in building businesses of enduring and transferable value.

"This industry grew out of a consumer need for experts delivering quality, unbiased advice. We believe advisors should have access to the same," Brad Bueermann, the CEO of FP Transitions, said in a statement. "Our firms are focused on solidifying the right foundation for creating some of the most successful independent advisory businesses our industry has seen to date."

RIAs leveraging TradePMR will now be able to take advantage of certified valuations, custom benchmarking and one-on-one coaching to assess, protect and grow the equity value of their businesses.

FP Transitions also provides legal guidance for firms creating next-generation ownership pathways, including entity design, modern compensation methods, succession planning strategies and full-service approach to advisory mergers and acquisitions.

Hearsay Systems improves tools for building advisor websites

Hearsay Sites has rolled out a new suite of features to help financial advisors more easily create and manage personalized, compliant websites for their practices.

Designed for advisors in need of easily discoverable and unique online presences, Sites now gives professionals a place to share their credentials and experience; promote webinars and in-person events; dish out educational materials; and collect leads directly from their website.

A redesigned administrative interface for 2023 makes the building process easier to navigate, drive traffic and prioritize local discoverability with built-in SEO targeting visitors looking to do business in an advisor's geographic area.

Sites is built on an enterprise-grade website presentation and hosting platform, meaning easy integration with the third-party tools and widgets an advisor may already have in their stack.

"In financial services, it's a fact that a good website drives client acquisition and retention," Alex Falls, the chief product officer of Hearsay Systems, said in a statement. "Sites is our response to what enterprise firms demand when it comes to flexible, custom websites for their largest teams, as well as standardized ones for their teams that need a turnkey offering.

"By making it easy to build and maintain both types of sites on a single platform, we enable firms to uplevel marketing for all agents and advisors in a one-stop experience."

Chris Johnson, the director of advisor marketing & communications at Janney Montgomery Scott, said the new Hearsay Sites does a better job helping his firm showcase the uniqueness of our individual financial advisors and teams, their service offerings, and their client engagement priorities.

"On top of the modern, sophisticated design of the Sites, our financial advisors and their teams now have even more flexibility to customize their websites with content that best suits their needs," Johnson said.