Advisor360° M&A nets new wealthtech

Advisor360° nets wealthtech, fresh faces in first-ever M&A deal

January 13, 2023 5:37 PM

Advisor360° is kicking off 2023 by welcoming new tech tools and new teammates.

The Weston, Massachusetts-based wealth management technology firm has acquired the digital technology and related wealth management assets of client onboarding automation software developer Agreement Express.

The deal, a milestone first acquisition for Advisor360°, includes the transfer of technology, intellectual property, clients and professionals from Agreement Express's wealth management business. The team that supports Agreement Express's existing wealth management business and clients will continue in their current roles at Advisor360°.

"Advisor360° gives wealth managers technology solutions that transform the way they connect with clients, which is why this transaction was a perfect fit," said Advisor360° CEO Rich Napolitano, who added that 2022 was a year of strong organic growth for the company, and that this first acquisition is a sign that it's not slowing down.

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"The Agreement Express transaction meaningfully accelerates our ability to offer expanded choice and connectivity on our platform, and we'll continue to raise the bar in 2023 and beyond," Napolitano said in a statement. "We're excited to welcome our new Agreement Express colleagues and clients to Advisor360°. As we look ahead to 2023, it's business as usual — which means more innovation for our clients' benefit."

Once the technology is integrated, Advisor360° will be able to support investment and insurance accounts at every major custodian and clearing firm and offer a wider range of integrations with industry-leading CRM providers.

Advisor360° officials also expect the existing platform will be enhanced by the new assets in other areas, including expanded automation and streamlining of paper and electronic workflows; simplified information gathering, organization and bundling; new digital signing features; and bulk advisor onboarding for team hires or new office acquisitions.

The deal also expands Advisor360°'s growing global footprint and talent pool by bringing on staff from the Agreement Express workforce in Canada. Last year, the company opened its first non-U.S. location in Bengaluru, India.

"We're thrilled that this business is now a part of one of the wealth management industry's largest providers of integrated technology solutions," Agreement Express CEO Dave O'Brien said in a statement. "Like Advisor360°, we appreciate that the best technology offers flexibility and choice, streamlining processes to help firms grow."

Scroll down to get caught up on other recent fintech news you might have missed in our Wealthtech Weekly recap. And check out the previous edition here.

J.P. Morgan Wealth Management introduces QuickDeposit for Investments

J.P. Morgan Wealth Management clients now have the power to deposit checks into their investment accounts directly from their phones.

Upgrades to the Chase Mobile app rolled out this week adding the new capability. Clients can click "Deposit Checks" on the ome or pay & transfer" tabs in the app, take a photo of the check and have their funds deposited in their investment account within 24 hours.

Company leaders say the update represents "another step in J.P. Morgan Wealth Management's journey to building out its digital investment capabilities."

"QuickDeposit for banking has always been one of our most popular features," Kristin Lemkau, CEO of U.S. wealth management for J.P. Morgan, said in a statement. "Now we have that same capability for investments. Clients can deposit higher-dollar checks right into their investment account quickly and safely."

Examples of QuickDeposit for Investments transactions include deposits into taxable investment accounts; contributions into traditional or Roth IRAs; rolling over a 401(k) or other employer-sponsored retirement plan into an IRA; and transferring an IRA at another firm to J.P. Morgan Wealth Management.

Clients can deposit up to $100,000 for taxable accounts and $500,000 for retirement accounts every 30 days. Clients will also be able to use QuickDeposit for Investments in the J.P. Morgan app.

"We know that most of our clients across the wealth spectrum like to handle basic transactions digitally, whether they work with a financial advisor or invest on their own," Ranjit Samra, head of technology at J.P. Morgan Wealth Management, said in a statement. "QuickDeposit for Investments allows them to do this efficiently and is an alternative to mailing a check or going to a branch."

Robinhood rolls out retirement tool to all customers

Robinhood Pays $65 Million To End A Key Probe, But Others Fester

After convincing more than 1 million people to join the waitlist for it one month ago, Robinhood's attempt to help gig workers start saving for retirement is live.

Robinhood Retirement is now available to all eligible customers, the company announced Thursday. Launched via waitlist in December, Robinhood is touting it is the first and only IRA to offer a 1% match for every eligible dollar contributed.

Robinhood is appealing to gig workers and other independent contractors with no access to employer-offered 401(k) plans. In a survey of more than 1,000 gig and other "non-traditional" workers in 2020, the nonprofit public policy group Pew Charitable Trusts found that just over half had worked the previous year for an employer who offered no retirement plan.

The same survey found that 77.5% of the respondents had taken part in employer-sponsored plans when they were offered and nearly seven in 10 wanted access to such a plan.

According to Robinhood, many of the customers who joined the waitlist are gig economy workers at places like DoorDash and Uber; identify as self-employed; or are looking to save beyond what's provided by their employers including Amazon, FedEx, Walmart and UPS.

"A quiet crisis is brewing, one that faces this and the next generation," Baiju Bhatt, Robinhood co-founder and CEO, said in a statement. "Systems are failing to catch up to the needs of how many people live and save."

Robinhood also plans to eventually let IRA investors put money into stock options, which give investors the right to sell a stock at a set price on a predetermined date. Profits from these investments will either be tax-free — if they're in a Roth account — or tax-deferred, if in a traditional IRA. Clients will be able to choose investments themselves or seek recommendations through Robinhood's online portfolio builder.

iCapital to boost technology team with 100 new hires

New York-based alternative investment platform iCapital wants to add 100 people to its global development team.

In a move that company representatives say "stands out in a challenging market" rife with layoffs, the fintech company is on the hunt for software engineers, product managers and infrastructure developers to pack out their offices in New York, Greenwich, Connecticut, and Lisbon, Portugal

iCapital currently has more than 400 technologists contributing to its 1,050-person global team.

"We are thrilled to be able to add such a large number of talented individuals to our team," Lawrence Calcano, chairman and CEO of iCapital, said in a statement. "The team is dedicated to providing cutting-edge technology, and these new hires will help us continue to push the boundaries of what is possible in the wealth management industry to help investors reach their goals."