Advisors: leave your technology woes behind. Custodians want to manage your tech for you.
That message was delivered loud and clear on Thursday as the Technology Tools for Today (T3) conference dedicated to advisor tech kicked off with big announcements from custodians Fidelity and Schwab.
In a sign that integrated technology platforms are playing a larger role in advisors’ practices, Fidelity Institutional introduced its new WealthCentral Technology Bundle, a one-size-fits-all software package for breakaway advisors and other new entrants to the advisory space. The bundle packages third-party technologies on the WealthCentral brokerage platform, including External IT’s Cloud Desktop, Redtail Technology’s customer relationship management system (CRM) and Advent’s Black Diamond wealth management platform.
“We want to accelerate the technology roadmap and give advisors what they need,” said Ed O’Brien, head of platform technology for Fidelity Institutional. “Breakaways and new entrants were coming to us and asking for the fastest way to get started on technology, and we put together this bundle for them.”
O’Brien noted that Redtail CRM, Black Diamond and External IT are among the software products that have previously been available on WealthCentral. The difference is that the bundled package is easier for advisors to adopt, because it is offered at a single price and a single sign-up, he said.
The cost for advisors is a quarterly minimum of $5,000 plus a range of three to four basis points depending on a firm’ assets under management.
As for Schwab’s Thursday news, it was announced that Redtail’s CRM also will participate in Schwab OpenView Gateway along with Orion Advisor Services’ portfolio accounting service.