Exclusive insights from FIS, Broadridge's Canada moves, and more — WealthTech Fusion, 17 May

Welcome to our weekly newsletter. Here, key events from the WealthTech universe converge to meet your curiosity. Subscribe and enjoy!

What’s in:?

• FutureMoney has launched a micro-investing platform
• An aspiring startup offering financial planning for couples has raised $5 million in seed funding.
• Broadridge expands its presence in Canada with a new acquisition
• FIS’s Russell Andrews discussed how AI will shape wealth management in 2024
• Matt Ong, CEO of Ctrl Alt, has shared his perspective on The Great Wealth Transfer and its challenges for wealth management professionals.

?? Release, please

FutureMoney , a US-based WealthTech start-up, has launched a micro-investing platform aimed at making investing more inclusive.

Co-founder and CEO Philip Barrar describes the platform as a “one-stop-shop” for parents to invest for their children's futures, featuring automated deposits, tax optimization, and fully managed portfolios.?

The platform's flagship offering is a tax-advantaged Junior Roth IRA, which can transition from a 529 plan after 15 years, allowing up to $35,000 in contributions by age 18. Unlike traditional custodial Roth IRAs, FutureMoney’s service has no earned income or income limits, making it accessible for everyday families to build generational wealth.?

?? Funding & Investment Updates

Plenty , a WealthTech platform focused on investment and financial planning for couples, has raised $5 million in seed funding.

The round, led by Inovia Capital , included contributions from Garage Capital , Interplay , and pre-seed investors such as Kevin Durant 's 35V .?

Plenty's “Yours/Mine/Ours” approach allows couples to manage their finances collaboratively, integrating cash flow management, goal planning, and value-aligned investment strategies.

The funding will support product development and team expansion, enhancing collaborative financial planning tools. With features like automatic transaction categorization and a 5.08% APY cash management option, Plenty aims to offer a unique, millennial-focused Fintech solution.

?? Wealthtech Cahoots

Broadridge plans to acquire Kyndryl 's Securities Industry Services (SIS) platform to enhance its presence in Canada.

With this acquisition, Broadridge has become better positioned to improve settlement, account record keeping, and tax services for Canadian financial firms. Broadridge will collaborate with Kyndryl to offer managed services for SIS, further strengthening its technology offerings in Canada.?

The acquisition, advised by RBC Capital Markets , is expected to deliver long-term benefits for Broadridge's commitment to innovation and meeting complex client needs.?

Additionally, Broadridge recently launched a derivatives trading platform to streamline trading activities and enhance order and execution management for institutional clients.

?? Bird’s Eye View

Russell Andrews , head of wealth and asset management EMEA at FIS , discussed with WealthBriefing how AI will shape wealth management in 2024.

• With a challenging macroeconomic environment and a shift towards alternative assets, Andrews highlights AI's potential to enhance the client-advisor relationship by automating tasks and providing data-driven advice in areas like portfolio optimization and risk management. Despite AI's benefits, he emphasizes the enduring need for human advisors.?
• Andrews also notes the industry's growing focus on data strategies and modernizing technology stacks to address rising labor costs and economic challenges.
• He predicts significant shifts and market consolidation in the near future, making it an exciting time for wealth management.

The impending intergenerational wealth transfer, estimated at $84 trillion in the U.S. and ￡5.5 trillion in the U.K., will present wealth managers with both challenges and opportunities.?

Matt Ong , CEO of Ctrl Alt , a B2B Alternative Asset Solutions provider, shared his outlook on the near future of wealth management with Forbes readers.

• Millennials and Gen Z, who prioritize environmental, social, and governance (ESG) principles, will drive significant changes in investment philosophies. Engaging these clients effectively requires a thoughtful blend of traditional investment expertise with a deep understanding of ESG principles, new portfolio allocation trends, and a communication style that resonates with them.
• The younger generations tend to prefer financial services on an as-needed basis and are highly likely to switch from their predecessors' financial advisors.?
• Adopting technology and digital platforms will be critical in appealing to a generation that values ease of access, transparency, and immediacy in their financial activities.?

According to Matt Ong, wealth managers need to reassess their service offerings, from the types of investment products to the channels through which advice and management services are delivered.

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Sources: Forbes, Finance Magnates, WealthBriefing, FinTech Global, FinTech Futures, and FinTech Global again.