We are delighted to welcome Max Livingston as our newest intern supporting the deal execution team at WealthTech Strategy Partners! Max is currently a student-athlete at Dartmouth College, where he has achieved success as a 2x Ivy League Football Champion. He is pursuing a degree in Economics and is set to graduate in Fall 2027.  Outside of his academic and athletic pursuits, Max enjoys working out, cooking, and spending quality time with his grandparents. His hard work, discipline, and commitment to a positive attitude have us all excited for the semester ahead. Join us in giving a warm welcome to Max—we’re excited to see all he will accomplish!

This past year has been an amazing ride for the WealthTech community with startups and incumbents working together to pioneer innovation. A few major trends observed in 2024, such as the rise of AI, the increasing demand for personalized services, and the shift towards digital-first platforms, have laid the groundwork for a future where technology empowers both advisors and clients, creating a more efficient and accessible wealth management experience.  One of the most notable trends we expect to see in 2025 is the continued rise of AI. Embedded AI will become increasingly prevalent in finance platforms, enhancing existing apps, and driving cost efficiencies. This will lead to the development of more sophisticated and user-friendly tools that automate tasks, provide insights, and enhance decision-making for both advisors and clients. Furthermore, AI-driven automation will streamline various processes, including client onboarding, risk profiling, portfolio rebalancing, and compliance monitoring. This will free up advisors to focus on building relationships, providing strategic guidance, and delivering a more personalized client experience.      In addition to AI, data cleanliness and enrichment will be critical for success in 2025. Wealth management firms will prioritize data quality to ensure accurate reporting, analysis, and informed decision-making. Clean and enriched data will also enable personalized recommendations, tailored communication, and proactive client support. By leveraging data-driven insights, firms can identify new business opportunities, optimize their operations, and improve efficiency.     Overall, WealthTech in 2025 promises to be a year of significant innovation and transformation. The convergence of AI, data analytics, and digital platforms will create a more personalized, accessible, and efficient wealth management experience for both advisors and clients. WealthTech companies that embrace these trends and adapt to evolving client expectations will be well-positioned to thrive in this dynamic market and shape the future of the wealth management industry.  Here’s a look at what some of the big voices are predicting:  The Fintech Times   Forbes And below are just a few of the conferences in Q1 that will be tracking WealthTech in all its innovation. See you out there!   US WealthTech Vendor Forum  Jan 21-23  Orion Ascent 2025   Feb 3-6  The Advyzon Conference  Feb 12-14  T3 technology Conference   March 3-6  Blue Vault Alts Summit   March 10-12  Futureproof  March 16-19

Orion, a universal tool for financial advisors and enterprise firms, has announced its acquisition of Summit Wealth Systems, a powerful client portal and data hub designed to unify key client information from multiple sources into a single, user-friendly interface.   Along with the platform, Reed Colley will serve as President of Orion Advisor Technology. With Colley’s deep understanding of what financial advisors need to build an efficient and seamlessly connected platform, Orion is well-positioned to provide advisors with solutions that address every aspect of their needs.  As one of the leading providers of technology to large RIAs, Orion already offers robust solutions in portfolio management, client reporting, and financial planning. However, the acquisition of Summit Wealth Systems further enhances Orion’s offerings. By integrating Summit's modern technology stack and innovative capabilities, Orion ensures it remains at the cutting edge of wealth management technology, equipping advisors with tools to better serve their clients and stay ahead in an increasingly competitive market. Additionally, bringing on a team led by Reed Colley will drive further development and integration of leading technologies.  With the deal expected to close in early 2025, could advisors finally be relieved of the pain of consolidating data and working with tech stacks that don’t communicate?   As the integration unfolds, it will be worth watching how Orion leverages this opportunity to redefine the standard for advisor technology solutions. With an interactive UI and collaborative features for both advisors and clients, the solution promises to deliver an enhanced experience for all users as it is adopted by Orion.  Congratulations to Reed Colley, the Summit Team, and everyone at Orion who will benefit from this exciting development!

JP Morgan pushes into self-directed trading with possible implications for WealthTech and wealth management. Wants to be a "top five" player in the space. In case you missed it, during the holidays Barron’s published a piece on JP Morgan’s enhanced efforts in the self-directed trading space. They quoted Paul Vienick, head of JP Morgan Online Investing, as saying they want to be a “top five” player in the space. That is an ambitious goal given the established competition, although they are leaving themselves some room to trail the mega-players. They have been quietly adding to their offering with the introduction of fractional shares, fixed income trading, enhanced investment screening, and trust accounts in 2024, a trend I expect to continue in 2025 as they join in the feature race. And to their credit, they have reportedly grown 80% over the last two years to $100 billion, which seems like a good start. While this puts them well behind the likes of Schwab and Fidelity, perhaps it puts something like Robinhood or eToro in their sights. According to Vienick, the rally point in the distance is around $1 trillion. To the extent that Jamie Dimon is walking around with “Self-Directed Trading” written down on his index card, the question might be “why?” As with most things in wealth management, the odds-on bet is it’s to grow advisory assets under management. As we read the article, the rationale goes something like this: 1. According to Gallup, stock ownership is on the rise with 62% of Americans owning stock vs 55% in 2020, the highest level since 2008. 2. According to Broadridge, one-third of self-directed investors have a current advisory relationship. This may indicate a broader latent desire amongst the remaining two-thirds to also have access to advice. 3. JP Morgan/Chase has thousands of bank-based advisors able to service any advice needs that self-directed investors might want in a personal banking/self-directed trading/professional advice one-stop shop. From the standpoint of our WealthTech world, it could mean some potential tuck-in acquisition activity for JP Morgan and others in the space as people look to build out their platforms. Given how finicky we believe self-directed investors can be, feature set and user experience are likely to be important decision factors. It could also mean larger acquisitions and consolidation. Note that Morgan Stanley bought E*Trade to enter the self-directed market back in 2020 for $13b. As organic growth continues to be a strong area of focus for wealth management going into 2025, I believe this is a theme worth watching. Link to article here (paywall): https://www.barrons.com/advisor/articles/jpmorgan-self-directed-investors-brokerage-7f74f6c7?mod=article_inline

The "UP-universe" is expanding : Uptiq.AI  has acquired UpSwot , a provider of financial data integration technology, to strengthen its AI-driven solutions for financial institutions, including banks, credit unions, and fintechs. UpSwot’s Financial Data Gateway will integrate with Uptiq.AI ’s AI Workbench , enabling seamless access to data from platforms such as accounting, banking, payroll, ERP, and CRM systems. This integration allows Uptiq.AI to enhance use cases like customer engagement, loan origination, compliance, and portfolio management. Snehal Fulzele , CEO of Uptiq.AI , said, “With UpSwot’s Financial Data Gateway, we can unlock the full potential of our AI Workbench, rapidly advancing the solutions we deliver to financial organizations.” Dmitry Norenko , CEO of UpSwot, added, “Joining Uptiq.AI enables us to amplify the impact of our data integration technology and extend its reach.” The combined platform emphasizes secure, compliance-first AI applications for financial services.

Fispoke, a WealthTech innovator, announced a capital raise exceeding $2 million, including a $1.5 million investment from The Founder's Chair, a collaborative platform connecting founders with strategic partners and investors. The funding will support Fispoke’s efforts to expand its banking and lending integration capabilities, develop strategic partnerships, and drive revenue growth. Its platform enables financial advisors to seamlessly integrate private banking and lending solutions into their workflows, helping them deliver more comprehensive and personalized services to clients. This development follows Fispoke’s earlier partnership with First Rate Inc. and highlights the growing demand for technology that enhances efficiency and client value in wealth management. Robert Clare, CEO of Fispoke, said, “This investment strengthens our foundation and fuels our focus on innovation and growth, helping us better serve financial advisors and their clients.” What do you think are the biggest challenges financial advisors face when integrating private banking and lending solutions into their workflows, and how can technology address these?

With technology advancing at an unprecedented pace, firms are moving away from traditional research and development approaches, opting instead to channel efforts through a corporate ventures team focused on acquiring nimble startups that have already begun solving the challenges at hand. These strategic acquisitions not only address immediate needs, but also generate visible and rapid returns, often through synergies between the startup's innovation and the incumbent's scale.  For Amundi, an asset manager that expanded into wealth management technology in 2021, the acquisition of Aixigo represents a pivotal move for growth. Aixigo's WealthTech platform offers robust tools for onboarding clients, managing allocations, placing orders, and generating reports—capabilities that seamlessly complement Amundi's existing services.  This strategy aligns with broader industry trends, as advisors face increasing pressure to offer more comprehensive solutions at lower costs. By integrating advanced technology, wealth managers can deliver scalable, efficient offerings that address a wider range of client needs while staying competitive in a rapidly evolving market.  Congratulations to Amundi and Aixigo on this promising partnership—an exciting step toward driving innovation and delivering enhanced value to clients!

Robinhood has announced its $300 million acquisition of TradePMR, a custodial and portfolio management platform for Registered Investment Advisors. The deal, which includes a mix of cash and stock, is expected to close in the first half of 2025, pending regulatory approvals. TradePMR manages $40 billion in assets under administration, supporting over 350 advisory firms.   This acquisition enables Robinhood to expand into wealth management by connecting its retail investors with fiduciary advisors. With Millennials and Gen Z expected to inherit $84 trillion over the next two decades, Robinhood aims to meet the growing demand for professional financial advice. Currently, Robinhood serves over 24 million funded accounts, primarily from younger investors.   As part of the deal, TradePMR will operate as a subsidiary of Robinhood, maintaining its existing relationships, including a long-standing partnership with Wells Fargo Clearing Services. Robinhood and TradePMR also plan to develop a platform to connect investors and advisors, further integrating their services to meet the evolving needs of retail and advisory markets.   The $300 million acquisition reflects a broader trend of retail-focused platforms investing in wealth management capabilities, signaling Robinhood’s commitment to diversifying its offerings and entering a competitive market. As Millennial and Gen Z investors inherit unprecedented wealth, how will traditional advisory firms adapt to compete with tech-first platforms like Robinhood in providing personalized financial guidance?

Axyon AI, the Italian wealthtech specializing in AI-driven solutions for asset managers, has secured an additional €2.1 million, closing a total €6 million funding round initiated in December 2023. This round saw participation from Green Sands Equity, Investment Opportunity 1, and various angel investors, marking a key milestone in Axyon AI’s expansion. Known for delivering alpha opportunities through AI-based rankings and advanced predictive models, Axyon AI equips asset managers with cutting-edge tools to enhance performance and navigate complex financial markets with precision—an innovation that aligns with the growing trend of AI-driven wealth management solutions in WealthTech. Co-founder and CEO Daniele Grassi commented, “Closing this round highlight confidence in our mission to transform asset management with AI. With this capital, we’ll accelerate our technological innovation and global reach, enabling wealth managers to offer more informed and personalized strategies.” This new funding will support Axyon AI’s efforts to integrate AI into wealth management, helping firms unlock deeper market insights and optimize client portfolios. Learn more about Axyon: https://axyon.ai/ Read more about Axyon funding round: https://ffnews.com/newsarticle/funding/axyon-ai-secures-further-e2-1-million-for-investment-round-totalling-e6-million/

Diesta, a London-based B2B SaaS company transforming payment operations in the insurance industry, has closed a $3.8 million Seed funding round. The round was led by FinTech Collective, with participation from Commerce Ventures and existing investors Restive Ventures and SixThirty. This funding follows a $2 million pre-seed round last year, reflecting strong momentum as Diesta scales its platform across the UK, Europe, and the US. The insurance sector, processing over $1.75 trillion in commercial premiums annually, is highly fragmented and reliant on outdated manual processes, leading to an estimated $32 billion lost each year due to inefficiencies. Diesta addresses these challenges by modernizing premium payment operations, ultimately enhancing the overall wealth management ecosystem by ensuring smoother transactions and improved cash flow for clients. Co-Founder and CEO Julian Schoemig noted, “We’re tackling the insurance industry's biggest back-office challenge—premium payments. Our platform brings digital payment innovation to a space long considered an unsolvable burden, making wealth management more efficient.” With this investment, Diesta plans to accelerate its expansion into new markets and insurance classes while enhancing its platform with AI-driven integrations. This funding will support Diesta’s mission to become the essential payment operations layer for the insurance sector, paving the way for a more integrated approach to financial services that benefits wealth management.

Sharing personal information with financial services can feel daunting, but it's a process designed with your security in mind. When institutions request data for credit checks, savings assessments, or financial planning, they do so with stringent privacy safeguards in place, aimed at helping you achieve your financial goals with confidence.   Financial institutions often collect specific data points, such as your contact information, credit score, and social security number, to offer services that are customized to your financial profile. This can open the door to better loan rates, refinancing options, or debt reduction strategies. Data collection is not arbitrary; it allows advisors and technology platforms to make recommendations that closely align with your unique financial circumstances.   To ensure your data remains secure, financial institutions deploy advanced encryption and tokenization methods, which transform sensitive information into unreadable formats that can only be accessed by authorized personnel under strict protocols.   Additionally, multi-factor authentication and intrusion detection systems are standard practices that monitor for any unusual activity, acting as a constant safeguard. Financial institutions also conduct regular audits and employ dedicated cybersecurity teams to uphold compliance with the latest industry standards. These security frameworks are designed to prevent unauthorized access, ensuring that your data is protected every step of the way—from collection and storage to analysis and application.   Industry leaders like Wells Fargo and American Express partner with secure data-sharing services and comply with rigorous data protection laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). These regulations require that institutions handle your data transparently, giving you control over how your information is used. Moreover, many credit checks use "soft" pulls that do not affect your credit score, enabling you to explore your options without any negative impact.   Data sharing can open the door to smarter financial decisions by using insights drawn from secure data to help you make informed choices. Trusted providers analyze your data within a secure framework to present you with insights that support your financial objectives—safely and efficiently.   While it's natural to have concerns about privacy, sharing data with reputable financial institutions can provide you with access to tailored services backed by robust security protocols and the latest technology. These systems are designed to keep your information safe, enabling you to take control of your financial future with peace of mind.

The Founder's Arena 2024 WealthTech Combine offered valuable insights into leadership, innovation, and strategic investing . Here are highlights from some of our favorites:  1. Leadership Excellence with Anthony Brock:  Anthony Brock highlighted that teams don’t naturally move toward success — leaders must actively align and motivate them with purpose. Effective leadership engages not only the intellect, but also the emotions, driving commitment to a shared mission. As leaders move forward, we must be mindful of where we are prone to drift off mission. Through all the changes and distractions, teams must work to maintain a long-term vision of serving their clients.  2. Streamlining Private Investments with Mammoth:   Mammoth is a model example of where we see the WealthTech space going. They recognized a need that clients don’t always receive from their advisors and created tech to solve the problem. Mammoth’s platform simplifies private investments by uniting clients, advisors, and asset managers. This unified approach reduces friction, streamlines processes, and improves efficiency, ultimately enhancing client experiences in wealth management.   3. Corporate Venture Capital Insights from the Investment Synergy Panel:   The Investment Synergy Panel with Marshall Smith, Kyle Carlson, and Kendrick Wakeman provided all attendees with a solid understanding of the Venture Capital and Corporate Venture Capital space. They discussed how CVC sees returns that are not only financial, but strategic. Some CVCs see it this way: 10x financial returns, 10x returns on things like innovation, talent, and distribution, in 10 years. Big corporates need innovation, and nimble startups need resources. Bringing the two together results in synergistic advantages for both sides.   A huge thank you to Pam Cytron, Scott Parsinen, Camille Santrach, Hamza Qadir, and Garrett Mutch from The Founders Arena for building such a strong community of WealthTech supporters, adopters, and visionaries. We are grateful to be part of it.    As a proud sponsor of The Founders Arena, WealthTech Strategy Partners is excited to see the impact that Cohort 3 — Agent iQ, LemonadeLXP, Mammoth Technology, Practice Intel, Quinn, and Zeplyn —will have on the industry. We’re confident these innovators will continue pushing the boundaries of what's possible in wealth management.    We look forward to the next steps and continuing this journey with all of you!  Learn more about WealthTech Strategy Partners: https://www.wealthtechstrategy.com/ Learn more about The Founders Arena: https://www.thefoundersarena.com/