First Rate partners Fispoke, data aggregation tech users get warnings, and more — WealthTech Fusion, 7 June.
Welcome to our new weekly newsletter. Here, key events from the WealthTech universe converge to meet your curiosity. Subscribe and enjoy!
What’s in:?
Let’s zoom in on the details.
?? Release, please
Megan Caywood Cooper , former Barclays chief product officer and Starling Bank chief platform officer, announced her new AI WealthTech startup.
The startup, named Caywood, debuted at Money20/20 . It is designed to provide real-time personalized financial guidance through advanced AI and APIs.
Cooper revealed that the next phase of digital banking will focus on creating better customer services through augmentation, requiring a fundamentally different user experience. Caywood aims to harness mature AI and API technology to offer features such as smart financial aggregation, financial summary and budget outlines, cashflow forecasting and modeling. AI-driven financial planning, and more.
One standout feature is tax optimization, intended to help individuals understand and utilize financial instruments and government incentives to achieve their financial goals. Cooper aims to help customers make better financial decisions by providing personalized financial advice when needed, meeting heightened expectations in the digital banking landscape.
?? Funding updates
London-based fintech WealthOS netted ￡4m in a funding round led by Barclays to scale its digital wealth management platform.?
The funds raised (including ￡2 million from Barclays) will be spent on platform development, distribution, and organizational scaling. Other fintech investors who joined the round were Chris Adelsbach and Mike O’Brien (already funded WealthOS in 2023), and Main Set , part of Capricorn Capital Partners UK .?
The investment follows WealthOS's strategic partnership with Quai Digital in February and builds on previous seed funding of $800,000 in 2021. It comes as fintech firms anticipate a rebound in investment after a challenging 2023.
WealthOS CEO Anton Padmasiri said the startup is dedicated to enabling organizations to offer omnichannel wealth management products efficiently. Andrew Challis of Barclays praised WealthOS for its impressive proposition and early commercial success.?
?? WealthTech Cahoots
The match we knew was made in heaven ??
First Rate, Inc , a global leader in WealthTech, announced its investment and strategic partnership with Fispoke? , an innovative WealthTech company.?
First Rate Ventures, the corporate venture capital fund, led the investment. The partnership aims to enhance product development and go-to-market strategies, leveraging Fispoke's technology with First Rate's 30 years of WealthTech expertise.
Fispoke, led by CEO Robert Clare , offers a platform that integrates private lending and banking solutions tailored for financial advisors and their clients. Clare stated the startup’s mission as “to revolutionize wealth management by empowering advisors with state-of-the-art tools.”
First Rate helps wealth management companies grow by offering innovative services like data aggregation, performance calculation, client reporting, and AI-driven analytics. With over 30 years of experience, First Rate enhances efficiency and strategic value for wealth managers.
领英推荐
Marshall Smith , Managing Director of First Rate Ventures, commented on the partnership, “Fispoke’s cutting-edge solutions align perfectly with First Rate's strategic growth initiatives across North America and international markets.”
?? C-Level Reshuffle
Dawn Nordberg , formerly the group head of strategic client management at Morgan Stanley Private Wealth Management , has joined 花旗 Wealth to lead a new "Integrated Client Engagement" program.?
The company’s wealth branch created the initiative to strengthen the connections between Citi's banking and wealth divisions, seeking to bring banking clients into the wealth management fold. Nordberg will also oversee market planning for adding new advisor talent and the Growth Accelerator initiative to boost clients' investible assets with Citi.
Nordberg's move follows a 25-year tenure at Morgan Stanley, where she managed collaboration between the firm’s institutional, wealth, and investment management divisions. Her appointment is part of broader changes at Citi Wealth, including the recent departure of Chief Investment Officer David Bailin and his interim replacement by Steven Wieting . Andy Sieg , who left Merrill Lynch to head Citigroup’s wealth management division last year, emphasized Citi's commitment to leveraging its global brand and client franchise across its businesses.
Advisor360° has appointed Abbe Galvez Cordon as senior strategy and corporate development vice president.?
Gálvez Cordón, who brings extensive experience in wealth management and technology, will oversee development and growth initiatives and report directly to CEO Mike Fanning.
Gálvez Cordón previously served as managing director, head of wealth and WealthTech investment banking at 美国银行 , where she was crucial in building the bank's WealthTech practice. At Bank of America and Merrill Lynch, she held key leadership roles, including managing director in corporate strategy and COO of US Trust, now Bank of America Private Bank.
Mike Fanning , who recently became CEO of Advisor360, praised Gálvez Cordón's deep understanding of WealthTech and strategic acumen. He expects her to lead the company's strategy evolution and identify growth opportunities.
Advisor360 recently partnered with GWN Securities, Inc. to develop a new technology platform for its advisors.
?? Bird’s Eye View
In Missouri, things are getting serious for wealth management, while WealthTech seems to be misunderstood.
The state Securities Division has issued a warning to over 40 state-registered financial advisors about using WealthTech platforms that access client data in accounts such as 401(k)s and bank accounts.?
The division considers the use of these tools, which rely on client login credentials, as "dishonest and unethical." This move mirrors a similar warning from Washington state.?
The tools in question allow advisors to access client accounts without the knowledge or approval of the account’s custodian, raising concerns about asset custody and fiduciary duty. Notable platforms potentially affected include Envestnet's Yodlee, Morningstar's ByAllAccounts, Fiserv's AllData, and Pontera.
Pontera , which Washington's regulators specifically targeted, asserts that their application uses secure, encrypted log-in credentials provided by clients, without sharing the data with advisors. Pontera's director of communications, Joseph Giannone , stated that there is confusion among regulators about how credential-based technologies operate, and the company is actively engaging with regulators for clarity.
This regulatory scrutiny indicates an ongoing and expanding concern among state securities regulators about the use of credential-based data aggregation technologies in the financial advisory industry.
Now you’re up to date with the key news ??
Subscribe to get WealthTech Fusion weekly and enjoy your Friday!?
Sources: City A.M., WealthManagement, InvestmentNews, Finextra, BusinessWire, and WealthManagement again.
Chief Executive Officer & Founder
5 个月Great partnership with First Rate, Inc and First Rate Ventures!
WealthTech | Corporate Venture Capital | Business As Mission | Transaction Advisor
5 个月Excited to back a great team in Fispoke?