Apex, InvestCloud Partner on Robo, Custody Integration

Apex Clearing announced that it is working with InvestCloud on a new digital advice platform for businesses that want to combine custody services and a digital offering.

The platform will allow firms to offer personalized digital advisory services in a solution that is integrated with their custody and clearing services. InvestCloud will provide the tools to build the solutions, while Apex will serve as the custodian for advisory firms.

Apex is the clearing firm for retail robos like Betterment and Robinhood.

(Related: Robo Clearing Firm Apex Taps Envestnet's Fiske to Head Retail Ops)

“At Apex, we are committed to developing solutions that empower innovation and drive growth within our clients’ businesses,” said Apex’s CEO Bill Capuzzi. “A big part of that is helping businesses distinguish themselves in the new era of digital investing – and not simply be seen as taking a ‘me too’ approach. Our new partnership with InvestCloud has allowed us to develop a highly customizable platform that does exactly that. It’s a seamless partnership between our two firms.”

The new platform will be available later this year.

Andrew Lewis, executive vice president of global business development at InvestCloud, said the firm uses proprietary technology that allows it to build unique customized technology platforms for its clients by combining different apps based on clients’ needs. The app-based technology lets the firm build solutions that can go to market quickly, and a small team of developers helps keep costs low, Lewis said.

To date, InvestCloud has about 670 clients with 5,000 different user experiences. “That’s a key number because every one of our clients looks completely different,” Lewis said.

“We’ve got this Lego-based model where clients can really build a solution with whatever apps they want,” he said.

Apex is a leader in custody and clearing for robos, he said

“The interesting thing for us,” he said, “is they have an API-based approach, so it’s very easy and simple for a partnership to come into place with InvestCloud.”

Lewis said the new platform is “a lot more flexible probably than any other robo solution in the marketplace today.”

Insurance companies with asset management divisions, regional banks and credit unions are showing immediate interest, he said.

--- Read Advisor Group Selects Jemstep to Build Integrated Tech Platform on ThinkAdvisor. 

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