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I met with Aaron Klein, CEO of Riskalyze, between sessions at T3 Enterprise 2015 to dive into the details of what he discussed during his general session presentation at the conference.

During his session, Klein identified that 52% of 20-29 year olds do not identify themselves as aggressive investors, which is in stark contrast to the assumption that the majority of younger investors generally have a higher tolerance for investment risk, as they have many more years to recover from short-term volatility. But it is these clients who sell at exactly the wrong time because they are invested too aggressively relative to their personal risk tolerance.

At T3 Enterprise 2015, Klein introduced the The Real-Time Wealth Management Enterprise platform, which can be deployed by financial enterprises in under 75 days. The Real-Time Wealth Management Enterprise is a combination of Riskalyze, Autopilot, and Compliance Cloud for large firms & RIAs.

The Real-Time Wealth Management Enterprise platform, according the Klein, allows enterprises to perform real fiduciary reviews for accounts large and small.

2015 was a massive year in advisor technology, with shocking headlines dominating the airwaves! Mergers and acquisitions, robo advisors, cybersecurity, and social media.

So get ready, the Best Technology of 2015 begins now!

(Watch FPPad Bits and Bytes on YouTube)

Thank you, thank you everyone, welcome to the show, I’m your host Bill Winterberg, and we’re here tonight to recognize the “best of the best” in financial advisor technology.

This is my sixth year highlighting top technology for financial advisors, and just like in previous years, I break down award winners into three categories: the best back office technology, the best client-facing technology, and the best overall innovation of the year.

So let’s begin with the Best Back-Office Technology award winner, which is a product or service that boosts the overall efficiency and productivity of your back office and makes a direct impact to your bottom line.

The Best Back-Office Technology of 2015 goes to:

Riskalyze Autopilot!

Clearly, automated asset management has dominated the headlines this year, but many of you just aren’t certain what your strategy will be when it comes to offering low-cost investment management.

Autopilot wins this year’s award because it is purpose-built for advisors, and not cobbled together from a retail offering.

And with tighter relationships with custodians, like the end-to-end process I’ve seen soon to debut with Trust Company of America, Autopilot is well positioned for those of you who want to move forward with offering an automated platform for your emerging clients.

Unfortunately I’m being told that Riskalyze CEO Aaron Klein just boarded a flight with United, so he doesn’t have inflight WiFi to accept this award virtually. Am I right, Michael?!?

Oh, well then..

Next up is the award for the Best Client-Facing Technology. The winning solution significantly enhances the client-facing elements of your business and facilitates your interactions with clients.

If you’re looking to differentiate your business and offer deeper financial planning services to clients, you can’t go wrong with this year’s Best Client-Facing Technology award winner,

Advizr

Now Advizr has only been around for a little more than a year, but they’ve gained some very good traction early on by allowing advisors to easily engage clients with a financial plan.

Clients and prospects can create their own high-level plan using Advizr’s user friendly interface, and then engage an advisor to further refine their plan based on their unique goals and circumstances. As this year’s Best Client-Facing Technology, Advizr is worth a look for those of you who want to give each and every client the benefit of having a financial plan.

And finally, our last category for this year’s awards is the Innovation of the Year, which goes to a product or service that introduces a completely new business practice or service experience that has never been possible or practical before.

The award for Innovation of the year goes to:

Periscope

So before Periscope was introduced, there really wasn’t an easy way for you to broadcast content live in real time to your audience. Some of you have used webinars or Google Hangouts before, but for those, you’re typically confined to your desktop or laptop computer in your office.

Periscope opens up an entirely new way to connect with your clients and prospects using nothing more than your mobile phone.

It’s incredible to consider the possibilities and potential of an app like this, so don’t let compliance create any excuses for you NOT to use something so revolutionary and well-deserving of Innovation of the Year.

So as this year’s awards come to an end, I want to take a moment to recognize all those who supported me through my career, because without them, I wouldn’t be where I am today, so honey, this is for you, I love you, and Dan, you’re an awesome son and you make me a proud dad, and, oh, I don’t want to forget my executive producer, Steve Biermann, I forgive you forcing me on the VooDoo ZipLine in Las Vegas, I’m ready to be friends again, and to my cat … ok ok!

Thank you everyone, hope you enjoyed the show, I’ll see you in 2016!!

Watch the Best Technology of 2015 for Financial Advisers

On today’s broadcast, it’s survey time. Find out about this year’s winners and losers in the annual Financial Planning Magazine technology survey.

So get ready, FPPad Bits and Bytes begins now.

Ok, this week’s coverage is all about the 2015 Financial Planning Magazine technology survey, analyzed every year by tech expert Joel Bruckenstein. This year’s survey consisted of just 600 responses, of which roughly 200 were from firms that identify themselves as independent RIAs.

Now I have to admit, this sample size is a lot lower then the peak back in 2011 when the survey collected over 3200 responses, but Financial Planning Magazine changed its survey methodology to prevent ballot stuffing, and insists that the current data is still statistically significant. So, now that we have that out of the way, you can draw your own conclusions from this year’s survey results.

First up: technology spending. Survey says: Over 90% of advisors spent the same or more on technology this year. But honestly, I don’t see how spending on technology guarantees your firm will be any better in the long run, it just means you spend lots of money on technology.

I care whether you’re gaining efficiency and scalability from the technology you do purchase, which leads us to the next item. CRM software.

So what’s the top CRM in use? Survey says! None.

Seriously, none?!? Yeah. Among independent RIAs, 22.9% say they don’t use a formal CRM. Oh wait, I know what CRM they use: Cranium Relationship Management, because It’s All Right Here. Ugh.

But for those of you who DO use a CRM, top survey responses include Salesforce, Junxure, and Redtail, with Wealthbox doing a respectable job closing the gap with the top three.

So what about financial planning software: Survey says! MoneyGuidePro takes the top spot, with eMoney in the runner up position for the sixth straight year. Eight other providers battle it out for the remaining solutions, with Advizr being one to watch with its quality showing after just one year in the marketplace.

And moving on, the next category is portfolio management software, with the top provider being, oh that’s right, survey says! PortfolioCenter.

Morningstar, Albridge, Envestnet and Orion round out the top five, as their numbers are fairly consistent with the tech surveys over the last few years. But, I’m fairly sure Envestnet and Orion are a lot closer to one another in marketshare than this survey shows, with Envestnet probably commanding a slight lead, so remember what I said earlier about statistical significance and sample size.

Alright, we’re in the home stretch now, as the top online advice solution is: Survey says: Wealth Access? Huh.

So now I’m confused, because Wealth Access provides portfolio reporting, monitoring and aggregation services, but not online advice. So that leaves a Schwab Institutional Intelligent Portfolios as the true top online advice solution, with nine other providers battling it out for at least some meaningful traction among advisors. I can tell there’s a lot more work to be done here.

And finally, I’m wrapping up with the top client portal, so, survey says! Broker-dealer or custodian provided. Ugh. That’s not a portal, that’s online account access! Anyone with an account has that! Seriously.

At least with eMoney, which claimed third place, clients can securely upload documents, see all their financial assets using account aggregation, and more. If all you offer is read-only account access to client, you are not leveraging the potential of a real client portal.

I don’t know about you, but I’m a little depressed after digesting this year’s tech survey. There is a lot of work left to be done.

But here’s the silver lining: this survey covers the technology that some advisors are using up until today, but it’s not indicative of the cutting-edge solutions that have the potential to grow your business in the near future.

For that, you’re going to have to watch next week’s episode on my picks for the Best Technology of 2015.

Watch FPPad Bits and Bytes for December 4, 2015

We wrap up our coverage of Schwab IMPACT 2015 from the floor of The Exchange, noting that this is an incremental year in technology updates from Schwab Advisor Services.

Following last year’s major announcement of Schwab Intelligent Portfolios, I left Schwab IMPACT 2015 with the impression that Schwab Advisor Services is busy delivering incremental updates and improvements to the company’s existing solutions.

Thank you to Itegria for sponsoring our coverage from Schwab IMPACT 2015.

Brian Shenson, Vice President of Advisor Technology for Schwab Advisor Services, met with me at Schwab IMPACT 2015 to update the company’s technology roadmap.

In this interview from the heart of “Schwab Center” in the nucleus of The Exchange exhibit hall, Shenson walks me through the status of Schwab Advisor Mobile Connect, Schwab Advisor Portfolio Connect, and Schwab OpenView MarketSquare.

Here is a quick conference preview for Schwab IMPACT 2015 to highlight what you can expect from our coverage of one of the industry’s largest events for independent RIAs.

On today’s broadcast, Financial Engines acquires the Mutual Fund Store, updates from the T3 Enterprise conference, ShareFile integrates with Smarsh, and more.

So get ready, FPPad Bits and Bytes begins now.

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Here are the links to this week’s top stories:

Financial Engines to Acquire The Mutual Fund Store to Expand Independent Advisory Services for 401(k) Plan Participants from Financial Engines

[Financial Engines, a leading independent investment advisor, today announced that it has signed a definitive agreement to acquire The Mutual Fund Store, LLC, a prominent nationally-branded independent Registered Investment Adviser, from Warburg Pincus and management for total consideration of approximately $560 million, including cash and stock.

First up this week is late-breaking news that Financial Engines, one of the original automated asset allocation tools for 401(k) accounts, announced it acquired the Mutual Fund Store, a $9.8 billion dollar RIA based in Kansas City.

Financial Engines is paying roughly $560 million in cash and stock, and will gain 345 employees spread across 125 retail locations that advise over 39,000 households. This deal adds a salvo of human advisers to Financial Engines’ online tools which, for now, are centered around retirement assets.

So, if you don’t have the technology that supports your own digital advice delivery to clients, you are falling behind. However, you are in a position to add value because you advise your clients on their total financial picture, not just their retirement accounts, so use this as your advantage while it lasts.] Financial Engines, a leading independent investment advisor, today announced that it has signed a definitive agreement to acquire The Mutual Fund Store, LLC, a prominent nationally-branded independent Registered Investment Adviser, from Warburg Pincus and management for total consideration of approximately $560 million, including cash and stock.

In bed with giants, T3 software entrepreneurs go to Florida to swear they are still more independent than thou from RIABiz

T3 Enterprise 2015 live interview replays on Katch.me

[Now I want to transition to a quick recap of the T3 Enterprise conference held in Weston Florida earlier this week, where fintech veteran Joel Bruckenstein assembled 45 of the industry’s top technology providers to demonstrate their solutions for the broker-dealer and enterprise RIA marketplace.

Some of the significant news includes Riskalyze CEO Aaron Klein, who introduced the Real-Time Wealth Management Enterprise ecosystem, which combines Riskalyze, Autopilot Enterprise, and Compliance Cloud all into one solution and updates from eMoney’s Drew DiMarino who confirmed the company will be unbundling the eMoney dashboard and financial planning components.] MoneyGuidePro’s Bob Curtis flipped the bird at potential VC cash-bearers as Fidelity-owned eMoney vowed it was still a scrapper

[Next up is news from ShareFile, as the online collaboration provider announced an integration with Smarsh, widely known for their email and social media archiving platform. Under the new integration, Smarsh can now automatically archive documents exchanged via ShareFile without any manual intervention or paying for a separate solution that handles those online documents.

So, why is this important? Because when you send a document to clients, regulators want to make sure you have an archive of that document that you can’t modify after the fact, something ShareFile calls “immutable retention.”

If you don’t somehow archive documents you send to clients, you could be getting into some pretty hot water if you changed, say, a fee schedule document, after delivering a prior version to your client. That’s why the immutable retention is so important.] Need a more robust and complete way to archive? ShareFile has a new integration with The Archiving Platform from Smarsh, the popular comprehensive archive platform, to create the only solution that meets the regulatory requirements for both online file sync and share and immutable retention.

Blueleaf Partners With Quovo to Deliver Smarter Data to Financial Advisors Nationwide from Marketwired.com, and

Jefferson National Partners with Quovo to Provide RIAs and Fee-Based Advisors with High Quality Data Aggregation for Tax-Advantaged Investing from Jefferson National

[And finally, wrapping up this week is news from Quovo, as the account aggregation provider, strike that, data science company announced it has partnered with Blueleaf, a financial relationship management platform.

This news comes on the heels of a partnership with Jefferson National announced a few weeks ago, allowing Quovo to obtain direct data feeds of variable annuity sub account information which, based on what I hear from you, has traditionally required manual data gathering because aggregation couldn’t handle similar sub account names that had different prices based on the annuity wrapper.] Blueleaf, a financial relationship management platform for advisors and their clients, today announced its partnership with Quovo, the leading financial data science company that addresses the needs of the wealth management industry. Blueleaf has selected Quovo as their data partner for the smarter aggregation of their clients’ held-away accounts.

Big Banks Lock Horns With Personal-Finance Web Portals from WSJ.com

[And speaking of account aggregation, let me finish by pointing out a Wall St. Journal column on account aggregation issues affecting Chase and Wells Fargo customers. Sites like Mint.com couldn’t aggregate those accounts for over a week, and I’m afraid that if these institutions don’t like the idea of third-party aggregators accessing their customer data, then high quality aggregation might get harder to come by, become more expensive, or both, so I’m going to keep an eye on this developing story and let you know what else you need to know as this story develops.] J.P. Morgan Chase & Co. and Wells Fargo & Co. are snarling the flow of data to popular websites that help consumers manage their finances, according to people familiar with the matter.

Watch FPPad Bits and Bytes for November 6, 2015

On today’s broadcast, Morningstar says it will acquire Total Rebalance Expert, LogMeIn acquires LastPass, and Laser App doubles down on technology training for advisors.

So get ready, FPPad Bits and Bytes begins now.

(WatchFPPad Bits and Bytes on YouTube)

Morningstar, Inc. to Acquire tRx Investment Portfolio Rebalancing Platform for Advisors from Morningstar

[Let’s get right to this week’s top story which comes from Morningstar, as the investment research company just announced that it will acquire Total Rebalance Expert, the portfolio rebalancing solution created by Sheryl Rowling back in 2008. Terms of the acquisition were not disclosed, but my take on this news is that it’s a big positive for both companies, and here’s why.

First, Morningstar has provided back-office technology to thousands of advisors in the form of Morningstar Advisor Workstation and Morningstar Office, but for years advisors have complained that the internal portfolio rebalancing tool lacked some of the more sophisticated features found in competing solutions. So acquiring TRX closes this gap in Morningstar’s technology platform.

And for TRX, what began as a personal project for Sheryl Rowling’s own RIA has grown into a legitimate player in the portfolio rebalancing marketplace with over 175 firms already on board. But in order to take TRX to the next level, it’s going to require additional investments in development, marketing, and customer service, and that’s where Morningstar has the potential to add tremendous value.

This news is the latest in a string of fintech acquisitions this year that includes eMoney, Advent, LearnVest, Finance Logix, Upside Advisor, Guide Financial, and Yodlee. So, I think it’s time we have a chat. Come on, bring it in.

The independent technology providers you use today are in play. Fintech is hot right now, and there’s a lot of cash available, so don’t be surprised if one of the core solutions you use announces it’s going to be acquired.

Now I’m not saying you need to make an exit plan for each piece of technology you use, but I’m going do my best to keep you up to date on what’s happening, and offer suggestions where I feel appropriate if you need to make a move to an alternate solution. Ok? Ok.] Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, has entered into a definitive agreement to acquire Total Rebalance Expert (tRx), an automated, tax-efficient investment portfolio rebalancing platform for financial advisors, from FNA, LLC. Morningstar expects to complete the transaction in November 2015.

LastPass Joins the LogMeIn Family from LastPass, and

Joining forces with LastPass from Meldium, and

LogMeIn now owns LastPass – here’s how to migrate to 1Password from TroyHunt.com

[Next up is more acquisition news as LogMeIn, the remote access software provider, announced that it will acquire LastPass, the popular password manager solution, for $110 million. This follows the company’s September 2014 acquisition of Meldium, another password management tool, with a price tag of $15 million.

Now LastPass is the solution I use to manage passwords to hundreds of online accounts, so I am paying very close attention to what’s going to happen to the product in the near future. One thing LogMeIn did say on their website is that users of Meldium will be encouraged to transition to a comparable version of LastPass in early 2016.

But much of the online chatter I’ve read about LogMeIn mentions terrible customer service experiences and frustrating billing issues, so I admit that I’m considering competing solutions like 1Password or Dashlane, but I’m not making any moves just yet. Nevertheless, I’ve saved a great article that walks through the steps of extracting all my password data from LastPass to migrate to another service in case I might need it in the future, and you’ll find that link along with this episode’s top stories.] It’s a big day here at LastPass. We’re thrilled to announce that we’re joining LogMeIn.

Laser App doubles down on technology training at its first Advisor Con event in Las Vegas from FPPad

[And finally, a few days ago I attended the first-ever Advisor Con event hosted by Laser App Software in Las Vegas. The agenda at Advisor Con was filled with training sessions, and not just on Laser App software, but training for all of the technology providers who where in attendance.]

Watch FPPad Bits and Bytes for October 16, 2015

Total Rebalance Expert, or TRX, is widely known for its impeccable portfolio rebalancing and tax management features. After all, TRX was born from Sheryl Rowling’s own need for an extremely precise tool to manage the demands of her RIA and CPA businesses.

But what escapes many advisers is the company’s culture born from the land of eternal summer, aka San Diego.

TRX lacks the institutional swagger of its larger counterparts, including iRebal from TD Ameritrade Institutional and Tamarac Advisor Rebalancing from Envestnet, but focuses on delivering value with its product line, where attention to detail and accuracy down to the penny and fractional share is vital.

So what happens when TRX decides to let its collective hair down and focus on education and value for its customers? You get TRX Unplugged.

Watch the coverage of TRX Unplugged above to gain a sense for how the company supports its advisor relationships and courts prospective firms with its deliberate relaxed attitude and atmosphere.

On today’s broadcast, the SEC fines an RIA for cybersecurity oversights, learn the steps you should implement to fight ransomware, and RightCapital is the newest startup in the financial planning software marketplace.

So get ready, FPPad Bits and Bytes begins now.

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by True North Networks, a leading provider of managed IT, hosting, and security services to financial professionals. With the introduction of SecureWorkplace, True North Networks helps advisors combat cybercrime with industry leading technology, monitoring, and employee awareness training.

And if you sign up for SecureWorkplace in October, you’ll receive a free firewall valued up to $2,000. Learn more about True North Networks and SecureWorkplace today by visiting fppad.com/truenorth

SEC Charges Investment Adviser With Failing to Adopt Proper Cybersecurity Policies and Procedures Prior To Breach from SEC.gov, and

OCIE’s 2015 Cybersecurity Examination Initiative, and

SEC Cybersecurity Guidance 2015-02

[I’ve been under the weather for a few days, but I’m back with this week’s top story that comes from the Securities and Exchange Commission, as the industry watchdog recently settled charges with a St. Louis-based RIA for failing to establish cybersecurity policies and procedures. In its settlement, the SEC said the firm “failed entirely to adopt written policies and procedures reasonably designed to safeguard customer information” and the regulator assessed a $75,000 penalty. As the result of a breach in July 2013, hackers gained access to personally identifiable information for roughly 100,00 individuals.

But the silver lining, if there is one, is that the SEC said that no clients have suffered financial harm as a result of the breach. Well, not yet, at least.

So this is your wake up call if you’re behind on establishing your own cybersecurity policies. You need them, and you need to periodically test them, or you may subject your firm to similar consequences.

Once again, I’ve linked the SEC’s most recent cybersecurity guidance in the show notes or consider hiring a security expert for RIAs like Itegria, Envision RIA, External IT, True North Networks, Right Size Solutions, and others.]

Don’t Pay the Hacker’s Ransom from ThinkAdvisor.com

[Next up is more news about cybersecurity, as Shareholders Service Group president Dan Skiles recently addressed the rise in ransomware attacks on RIAs. Skiles notes that RIAs typically come across ransomware in a phishing email or a rogue file attachment, and once it’s mistakenly activated, the ransomware holds your computer and your files hostage unless you pay a ransom amount in bitcoin to unlock everything.

Obviously it’s best to never launch programs from unknown sources, but if ransomware does get activated inside your firm, Skiles recommends you isolate the computer that was attacked and work with an experienced IT professional to limit the damage. Arguably the best protection against ransomware is to have a fully-functional backup of all of your files, so you can literally throw your infected computer in the trash and start from scratch by restoring your files from a good backup.

It’s best if the ransomware never gets launched in the first place, so keeping your cybersecurity policies up to date AND offering periodic training to your firm’s employees will go a long way in protecting the information your clients trust you to keep safe.] When your firm is hit with a ransomware virus, try these steps first

New financial planning software tries to win market share in a crowded field from InvestmentNews

[And finally, I’m wrapping up with a new startup called RightCapital, which announced the introduction of its eponymous financial planning software at the XY Planning Network conference in Charlotte last week. RightCapital joins Advizr, another planning software startup I’ve covered before, to offer an intuitive and attractively-designed platform as an alternative to veteran providers like MoneyGuide Pro, eMoney, and Advicent.

You’ll have to test drive RightCaptial to see if its planning capabilities are up to your standards, but with built-in account aggregation, integrations with Morningstar, Yodlee, and Redtail, and a price tag under $1,000 a year, RightCapital deserves a spot on your radar screen, especially if financial planning is going to play a more prominent role in your business.] Newly launched service provider RightCapital thinks it has created a better mousetrap and is undaunted by the hypercompetitive market

Watch FPPad Bits and Bytes for September 25, 2015