In this edition of the Wealthtech Roundup, we speak with our newest Wealthtech Leader of the Month, David Crow, EVP and Head of Axos Clearing, who discusses the most pressing needs in custody and clearing.
Other entries include Robinhood agreeing to acquire TradePMR, Wealth.com partnering with Merit Financial Advisors, Luma partnering with iPipeline, Osaic upgrading advisors’ digital tools, Future Capital integrating with SS&C’s Black Diamond, Flourish integrating with Salesforce and other CRMs, Communify Fincentric Appointing Nicole Nakashian as COO, PureFacts appointing Pete Hess As President and Advyzon Investment Management integrating with Syntax Data.
Larry’s Take
Wealthtech firms face a unique challenge in finding exceptional leaders and managers who can take their businesses to the next level. These people must understand the technology the platform currently possesses, along with a vision of how to enhance the technology in a cost-efficient manner while also introducing functionality that financial advisors consider a value-add.
This process often entails determining what the wealthtech firm can and should build in-house, which third-party vendors the wealthtech firm should integrate with, how much the evolving behavioral patterns of financial advisors’ clients will impact advisors’ own priorities, and to what extent regulations will require the wealthtech firm to build in specific safeguards.
Accomplishing this can be more difficult than building successful RIAs, which far outnumber successful wealthtech firms. That’s why wealthtech leaders with a strong track record are often in such high demand. As a result, when it’s time to adopt new software, decision-makers at RIAs might want to pay closer attention to who’s making the decisions at these wealthtech firms.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com.
1. Axos Discusses The Most Pressing Needs In Custody And Clearing
Axos Clearing recently partnered with Envestnet on managed account solutions that are being integrated into the Axos Complete portal. Goals of the integration are for Envestnet’s managed account technology to enable Axos Clearing clients to streamline portfolio management, automate routine tasks including rebalancing and reporting, and offer a wider range of investment options.
Axos Financial is the holding company for Axos Bank, Axos Clearing and Axos Invest. Axos Clearing, including its business division Axos Advisor Services, had approximately $35.7 billion of assets under custody and/or administration as of June 30. And now for our Q&A with David Crow, EVP and Head of Axos Clearing, who before joining Axos Clearing last year worked for approximately 23 years at BNY Mellon | Pershing.
WSR: What are the most pressing needs that wealth management firms currently have regarding custody and clearing?
Crow: RIAs and hybrid broker-dealers need a platform that is as flexible and client-centered as their business models. They seek an open, integrated approach to custody and clearing that empowers them to streamline workflows and elevate client experiences across every function—front, middle and back-office.
WSR: What are the major challenges that wealth management firms face when seeking to solve for those needs?
Crow: The biggest challenges stem from rigid, legacy systems that limit operational flexibility and responsiveness. Finding a partner with a fresh approach to technology and strategic alignment can be difficult, especially when balancing customization, compliance and growth. Axos Clearing’s open technology aims to bridge these gaps with efficiency and adaptability.
WSR: How can wealth management firms overcome those challenges?
Crow: To overcome these challenges, RIAs and hybrid broker-dealers need adaptable technology that brings together custody, banking and advisory tools into one streamlined experience. By choosing an integrated ecosystem, firms can simplify operations, improve efficiency and remain responsive to client needs. Axos Complete provides that ecosystem—combining banking, advisory support and integrated technology to create a unified, flexible foundation that aligns with firms’ goals and enhances growth.
2. Robinhood To Buy TradePMR For About $300 Million
Robinhood Markets agreed to acquire TradePMR, a custodial and portfolio management platform for RIAs, for about $300 million in a combination of cash and stock. The acquisition is expected to close in the first half of 2025. TradePMR has more than 25 years in the industry and over $40 billion in assets under administration. Robinhood has over 24 million funded client accounts, about 75% of which are Gen Zers and millennials.
Robinhood intends for the deal to accelerate its delivery of investment advisory capabilities to customers. The combined firms plan to build a referral program, and TradePMR’s RIAs will be able to access a new client base via Robinhood. They also intend to enhance their technology platform to make it easier for RIAs to reach Robinhood clients and grow their businesses. TradePMR has a long-standing partnership with Wells Fargo Clearing Services, which Robinhood and TradePMR plan to preserve and deepen.
“The TradePMR team has one of the strongest RIA networks in the industry,” said Vlad Tenev, CEO and Chairman of Robinhood. “We’re excited to join forces to build a category defining advisory platform for the next generation.”
3. Wealth.com Partners With Merit Financial Advisors On Estate Planning
Wealth.com partnered with Atlanta-based Merit Financial Advisors, which provides wealth management solutions for high net worth individuals and families, to give Merit advisors access to Wealth.com’s estate planning digital resources. Merit has nearly $12 billion in assets under management (AUM) and more than 26,000 clients nationwide.
Wealth.com helps with the creation of wills, trusts and advanced directives, as well as with estate visualization, tax planning and streamlining reporting processes. In September, Wealth.com completed a $30 million Series A funding round led by venture capital firm and Alphabet subsidiary GV (formerly Google Ventures), designed to enhance its artificial intelligence (AI)-enhanced estate planning capabilities.
“Our partnership with Merit reflects a shared commitment to empowering advisors with the tools they need to deliver exceptional service,” said Tim White, Co-Founder and Chief Partnership Officer at Wealth.com. “This collaboration will allow Merit’s advisors to unlock new opportunities, deepen client relationships and create long-term value with a modern, tech-forward approach to estate planning.”
4. Luma Partners With iPipeline On Digital Workflows For Annuities And Life Insurance
Luma Financial Technologies, a provider of structured products and insurance solutions, partnered with iPipeline, a provider of digital tools for the life insurance, annuities and wealth management industries. They strive to streamline and simplify workflows for Brokerage General Agencies, Independent Marketing Organizations and broker-dealers. Advisors and agents will have access to standardized carrier products and digital tools within a single platform.
The goal is to touch every stage of the annuity and life insurance process, from education and product comparison to transaction management and lifecycle support. Agents will be able to access e-signatures and customizable configurations. Features also include a unified order entry interface that standardizes products across carriers, streamlined business processing, and carrier-managed product rules and forms suitable for both carriers and distributors.
“Our collaboration with iPipeline underscores our commitment to providing innovative technology that enhances the efficiency and effectiveness of advisors and agents handling annuity and life insurance solutions for their clients,” said Jay Charles, Managing Director, Head of Insurance Products at Luma. “By integrating iPipeline’s capabilities into our latest insurance offering, we’re setting a new benchmark for streamlined workflows and exceptional client service in annuities and life insurance.”
5. Osaic Upgrades Advisor Apps, Platform Integrations And Transition Assistance Tools
The national broker-dealer network Osaic, which supports approximately 11,000 financial professionals, announced updates to its digital platform during its annual ConnectED conference in Orlando, where more than 7,000 attendees gathered in person and virtually for the three-day event. OneHub, eQuipt, Transition Dashboard, Client Portal, Support Center, Annuity Submission Platform and other tools all received upgrades.
OneHub features custom apps for access to frequently used tools; real-time reporting of data and metrics on accounts, assets and more; and dashboards with day-to-day business insights. eQuipt consolidates legacy platforms for account opening, client management and account supervision, digital delivery of paperwork and integration with other Osaic technology. Transition Dashboard supports the process of new advisors joining the firm, with daily updates on asset transfers and insights into where the advisor is in the transition process.
“Research shows that firm technology is a key factor in an advisor’s satisfaction with wealth management platforms,” said Ed Obuchowski, Executive Vice President and Chief Technology Officer at Osaic. “We knew it was critical to our advisors’ business that we upgrade our digital platform to build a seamless, integrated, end-to-end experience that offers both navigation ease and flexibility as advisors’ needs evolve.”
6. Future Capital Integrates With SS&C’s Black Diamond On Held Away 401(k) Assets
Future Capital, a tech-based RIA specializing in personalized retirement solutions, integrated its Construct platform with SS&C’s Black Diamond Wealth Platform, providing more than 2,700 wealth management firms with direct access to manage their clients’ held-away 401(k) assets. Black Diamond provides advisors with CRM, portfolio management, trading and rebalancing, data aggregation, billing and business intelligence metrics.
Construct, which Future Capital launched in June, enables advisors to build custom allocations and exercise full discretion over clients’ 401(k) assets without triggering custody. Data will flow between the two platforms, advisors will have direct access to Future Capital’s portal to manage held-away assets and clients will be able to view their accounts through the Black Diamond Client Portal.
“At SS&C Black Diamond, we are committed to delivering tools which enable advisors to elevate their service offerings,” said Eli George, Vice President of Wealth Strategy, Data Services & Partnerships at SS&C Advent. “Integrating Future Capital’s technology into our platform provides users with an efficient, seamless way to manage retirement assets, driving operational efficiency and deeper client relationships.”
7. Flourish Integrates With Salesforce, Practifi, Salentica And XLR8 CRMs
Flourish integrated with the Salesforce Financial Services Cloud CRM, enabling RIAs to prefill Flourish application information using data stored in Salesforce. The integration also extends to Practifi, SS&C’s Salentica Elements CRM and XLR8 CRM, which are all in the Salesforce ecosystem for RIAs. The goal is to minimize friction in the client onboarding process.
The Flourish platform – which is wholly owned by Massachusetts Mutual Life Insurance Company – supports over $6 billion in assets under custody, and is used by more than 850 wealth management firms representing over $1.5 trillion in AUM. Flourish Cash helps advisors’ clients earn variable interest rates on held-away cash and has FDIC insurance coverage through Program Banks. Flourish Annuities is an RIA-centric platform that offers fixed income solutions in client portfolios.
“Our goal is to seamlessly integrate Flourish into the systems RIAs are already using today to give valuable time back to advisors,” said Max Lane, CEO of Flourish. “Adding Salesforce, the number one CRM by market share, makes it even easier for advisors to help their clients earn more on their held away cash while simultaneously growing their practices.”
8. Communify Fincentric Appoints Nicole Nakashian As Its First COO
Fintech provider Communify Fincentric appointed Nicole Nakashian as its first Chief Operating Officer. She brings more than 25 years of operational leadership to Communify Fincentric, and most recently served as COO of InvestCloud since 2020, where she helped scale that firm’s platform to more than $6 trillion in assets. Nakashian will be based in New York City.
Prior to being named COO at InvestCloud, she was an Executive Vice President from July 2017 until February 2020. Earlier in her career, she was a Vice President at BlackRock from 1998 to 2002 and Executive Director at UBS Investment Bank from September 2004 until August 2010. Nakashian rejoins Communify Fincentric CEO and Chairman John Wise, who co-founded InvestCloud and served as its CEO through January, according to his LinkedIn profile.
“I’m excited to be at a company that is at the forefront of unifying the communication of market and client data,” Nakashian said. “Firms are seeking next-generation data-rich platforms that enhance client engagement and drive growth. I look forward to supporting scale and efficiency as Communify Fincentric responds to that need.”
9. PureFacts Appoints InvestCloud And Advent Veteran Pete Hess As President
PureFacts Financial Solutions, a provider of revenue management solutions for the wealth and asset management industries, appointed Pete Hess as President. He will report to Robert Madej, Founder and CEO of PureFacts. Hess has nearly 30 years of experience. Most recently, he served as Chief Revenue Officer for the Americas at InvestCloud.
Hess also served as Operating Partner at U.S. private equity firm Welsh, Carson, Anderson & Stowe. Earlier, Hess spent more than 20 years at Advent, including as President and then CEO. His hire follows the completion of a strategic investment in PureFacts by GrowthCurve Capital, a private equity firm that implements data analytics and machine learning to grow businesses.
“Over the course of my career, I’ve seen firsthand the continually evolving technology to support the wealth and asset management industries,” Hess said. “In my view, one critical area that has been too often overlooked is revenue management. PureFacts is leading the charge to change that, and I’m excited to elevate our end-to-end solution, helping clients unlock new revenue streams and uncover new avenues for growth.”
10. Advyzon Investment Management Integrates With Syntax Data For Direct Indexing
Advyzon Investment Management (AIM), a turnkey asset management program (TAMP) that is part of Advyzon, partnered with Syntax Data on direct indexing solutions for advisors. They will be able to customize benchmark indices or build core, factor, thematic, and/or impact indices as well as tailor investment solutions to match client preferences.
Syntax Data’s output includes back-tested performance, statistical analysis and an institutional-grade methodology document on the investment process. Advyzon provides tools for portfolio management, performance reporting, trading and rebalancing, client web portals, CRM, client billing, document storage and a model marketplace with access to third-party strategists.
“The integration of Syntax’s indexing capabilities into Advyzon’s comprehensive platform gives us a clear advantage in providing a full range of investment-related services to RIAs that facilitate the organic growth of their practices – most notably, seamlessly taking a taxable account, creating a personalized index, and then transitioning it through AIM’s Tax Transition Optimization Engine designed to create tax alpha with the goal of maximizing after-tax returns,” said Lee Andreatta, CEO of Advyzon Investment Management.
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
