Can wealthtech bring focus and stability to legacy businesses?

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Firms "pulled in many directions" in recent years can find their way with the right technology, Jemstep CEO Simon Roy says in an episode of Financial Planning's Invest Podcast.

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The Silicon Valley-based firm acquired in 2016 by Invesco provides financial advisor desktop software for banks, credit unions, broker-dealers, RIAs and insurance firms. In November, the firm struck an enterprise tech agreement with Infinex Financial Group's broker-dealer platform of more than 650 advisors based in community banks and credit unions.

Roy describes how his team handles the integration process, how wealthtech startups should evaluate potential M&A deals and the key questions Jemstep is helping its client firms answer in the digital age. For example, annual client review requirements under the new SEC Regulation Best Interest will be “very expensive” for firms and practices with smaller accounts, he says.

Simon Roy is CEO of Jemstep, a financial advisor desktop software firm acquired in 2016 by Invesco.

“Thinking about how we can work with them to provide technology to digitize that to the extent possible [and] reduce the cost while enhancing their compliance is one of the key areas we see uptake on,” Roy says. “The firms are pulled in many directions, whether it’s fee compression, whether its compliance or regulatory, whether it’s competitive pressures. At the same time, they know their clients’ expectations are changing for technology. So they’re trying to balance all of these elements, and we’re working with them to focus their efforts on the areas which give them the greatest return.”