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By Nico DeMaio - July 08, 2024 In today’s competitive financial advisory landscape, Registered Investment Advisors (RIAs) face the dual challenge of expanding their practices while managing operational complexities. One of the most significant hurdles they encounter is maintaining high service levels amidst rapid growth. By strategically leveraging technology and outsourcing non-core tasks, RIAs can streamline their operations, alleviating these complexities and enabling them to concentrate more on client relationships and business development. This approach not only enhances operational efficiency but also significantly boosts the valuation of their practice, allowing advisors to focus on what matters most: their clients. Read More

WSR Inaugural List Of Leading Next Generation Professionals Recognizes Executives From AdvizorStack, Diamond Consultants, LPL, Stratos And Berkshire Global Advisors. By Chris Latham - June 4, 2024 In the past, Next Gen recognition lists have focused mainly on financial advisors. And while advisors are quite deserving of those honors, in a lot of ways the advisor population demographically reflects the broader industry population – from home offices of RIA and independent broker-dealer enterprises to executive teams at third-party solutions providers. So any discussion of Next Gen leaders ought to consider how the full ecosystem of the wealth management industry interconnects across this larger landscape. Furthermore, just as long-established veteran financial advisors must engage in succession planning on behalf of their clients and colleagues, so must the management teams of forward-thinking organizations. Therefore, when we think of Next Gen, we are looking for the rising talent of today who can steward the industry into tomorrow. Our inaugural edition of the invitation-only NEXT 5 features leaders who have distinguished themselves throughout their careers, which are still very much in progress, by demonstrating exceptional drive, vision and the ability to inspire others to achieve positive change at their organizations. We congratulate them on their accomplishments, which we have summarized below. Here are the winners, presented in alphabetical order. Nico DeMaio, President, AdvizorStack Nico DeMaio is President of AdvizorStack, a consultative outsourced CTO that provides customized technology stacks for RIAs. Its solutions encompass client onboarding, billing and reporting, trade and order management, financial planning, research and analytics, as well as CRM. The 30-year-old is a Pittsburgh native and University of Arizona Eller College of Management graduate. DeMaio had a passion for finance and technology at a young age. He started his career at Charles Schwab in 2017, where he was Head Junior Advisor for a $3 billion practice. Moving on to TD Ameritrade in 2018, DeMaio started his own book of business in Silicon Valley, where he oversaw more than $750 million in assets. As a top performing Senior Financial Consultant at TDA, DeMaio saw the need for technology in an industry that he felt was significantly lacking innovation. From 2020 to 2022, DeMaio worked at the wealthtech platform Amplify, where he served as Relationship Manager. He oversaw growth from $400 million to $6 billion in 18 months. In December 2022, DeMaio launched AdvizorStack with his father, Paul, who serves as CEO and Managing Partner. Nico DeMaio brings his expertise in financial planning, technology and relationship management to building and growing a company that he strives to be recognized as “truly for advisors, by advisors.” AdvizorStack has grown over 300% since the start of 2024. Read More

The growing retail appetite for alts: Impacts and outcomes By Alternatives Watch Staff - March 22, 2024 Market volatility and economic uncertainty over the past few years dominoed across investment portfolios large and small. One potentially permanent — and paradigm-shifting — consequence is the rising popularity of alternative investments among retail investors. It is a development that has implications far beyond broadening the scope of investment options for non-institutional investors. The complexities associated with the democratization of alts are not limited to advisor education and end-client knowledge of the asset class and its risk/reward profile. Regulatory hurdles, technology investments, reporting requirements and product due diligence all spring to mind. Then, there are the operational challenges. Registered Investment Advisers (RIAs) looking to accommodate the expectations of advisors and meet their clients’ appetites, while also expanding their AUM, are working to ensure their back-office infrastructure and solutions can enable alts participation by this growing demographic. How are firms approaching this imperative? Alternatives Watch spoke to three executives to discuss the emerging challenges that accompany this shift, what solutions firms are gravitating toward to meet this demand and the top back-office solutions RIA firms need in order to align alts effectively and compliantly with their advisors and their clients: We spoke with a panel of experts: -Tiffany Magri, Sr. Regulatory Advisor, Smarsh, a technology company specializing in digital communications compliance and intelligence - Paul DeMaio, CEO and Managing Partner, AdvizorStack, a fintech technology platform offering RIAs turnkey access to a curated assortment of third-party solutions providers -Kevin Keefe, Chief Executive Officer, Realta Wealth, an independent broker-dealer and RIA platform Q: What are the top back-office solutions RIA firms need to have to effectively, and in a compliant way, align alts with their advisors’ end clients? DeMaio: While alts have become more and more prevalent in today’s portfolios for high-net-worth individuals and trusts, the problem of reporting on these assets is more difficult than ever. AdvizorStack feels we have the right solutions and integrations with top-tier firms to solve that problem. But we don’t stop at just integrating the platforms. We become the all-in-one service provider and tech support arm for your firm. We not only implement and transition your accounts to these platforms, we also train your personnel on how to best use these platforms. We believe having an excellent financial planning tool is extremely important when evaluating alts for any client. We partner with financial planning software providers to give us these solutions while fully integrating them into our CRM, allowing the advisor to set a comprehensive long-term plan for any clients or trust accounts. Third, but not least, is the importance of having a strong risk scoring tool in place to make sure your alts do not throw the portfolios out of the client’s general risk parameters; our offering includes a risk analytics and scoring platform that is also fully integrated into the AdvizorStack CRM, allowing one-stop shopping for all of the advisors’ needs, while giving the advisor the ability to latch onto our institutional pricing. This integrated functionality allows AdvizorStack to be an outsourced chief technology officer and an extension of their firm. Read More

Innovative Wealthtech Positioned to Breathe New Life into Small- and Mid-sized RIA Segment By DWN Staff - March 11, 2024 Throughout his 30+ year financial services career, AdvizorStack CEO Paul DeMaio never considered himself a disruptor. All that changed in 2022, when Paul, along with his son, Nico – a 10-year industry veteran himself, who serves as the firm’s President – launched AdvizorStack, a fintech technology platform offering Registered Investment Advisors (RIAs) turnkey access to a curated assortment of third-party solutions providers. What’s revolutionary about that? The answer lies in AdvizorStack’s client base: the under $250 million RIA segment – breakaway advisors, large OSJs and established RIAs all looking for cost-effective, integrated tech and back-office support. Read More

AdvizorStack, a visionary player in the financial technology sector, is proud to unveil a revolutionary solution designed to empower financial advisors in today’s dynamic landscape. Focused on breaking down technology barriers and turning them into steppingstones towards success, AdvizorStack is set to redefine the way advisors navigate the digital age. In the fast-paced world of fintech, a glaring challenge for financial advisors has been the lack of an affordable platform for trading advisor-driven portfolios. Recognizing this need, AdvizorStack has introduced a game-changing solution. Paul DeMaio, CEO of AdvizorStack says “This solves a huge need in the space for advisors that want to have the ability to create their own portfolios, create rebalancing rules at the model and individual account level.” AdvizorStack has selected Qdeck as its primary advisor portfolio manager sleeve, and it now comes as an integral part of the initial purchase of AdvizorStack. This strategic alliance equips AdvizorStack clients with an institutional-grade trade order management system that is agnostic to custodians. This greatly simplifies an advisor’s investment process through one centralized platform. Jagdeesh Prakasam, CEO of Qdeck.ai Stated “For over 60 years financial advisors have seen only incremental improvements in technology offerings. Finally, Qdeck.ai and AdvizorStack have teamed up to deliver a digital framework for financial advisors that captures the ethos and expectations of the next generation of advisors and their clients.” Nico DeMaio, President, and Founder of AdvizorStack, added “What interested me was the use of generative AI to allow models to create their own weightings, drift thresholds and truly made the advisors life easier. As the next generation of advisors continue to prepare for the great wealth transfer, tools like this are going to be the difference in recruiting advisors and keeping assets at your firm.” About AdvizorStack: AdvizorStack was conceived by advisors, for advisors, with the mission to provide an Outsourced Chief Technology Officer for the everyday Registered Investment Advisors (RIA). Historically, only larger firms possessed the capability to craft unified experiences and dashboards. However, AdvizorStack extends this capability to the everyday advisor by creating institutional level contracts and hand selecting vendors to fit the firms’ specific needs. As for financial advisors, AdvizorStack recognizes the challenges of breaking away from the norm and selecting the technology that aligns with your needs. AdvizorStack is the one stop solution for you to create a wirehouse type home office. Offering support during advisory transitions and handling the implementation and onboarding of advisors onto their new technology stack. We pride ourselves on being your firm’s back office and solving any problem that you present us with to improve you and your end clients’ experience. We stand at the forefront of empowering advisors to thrive in an evolving landscape, leveraging technology to transform obstacles into your success. About Qdeck: Qdeck, an innovative FinTech company, harnesses the power of generative AI and investment management technology to empower Registered Investment Advisors (RIAs) in enhancing their clients’ digital experiences while seamlessly managing their portfolios. Our Qdeck platform, developed over the course of four years and recently introduced to the market, boasts a robust suite of features including real-time access to financial data, advanced financial simulation and reporting tools, an AI-driven chat interface providing actionable insights, customizable compliance-friendly content, comprehensive client account management, and a fully tailored client portal. With the Qdeck model library at their fingertips, RIAs can effortlessly incorporate advanced portfolio overlays or develop their own custom Robo-advisor, all for a flat subscription fee. Discover more at www.qdeck.ai. AdvizorStack and Qdeck will be discussing generative AI and how AI tools will continue to change the way Financial Advisors do their job on the Adjusted for Risk Podcast November 6th. For more information on AdvizorStack, please feel free to contact the AdvizorStack team at info@advizorstack.com or visit our website at www.advizorstack.com or www.Qdeck.ai.

Technology + People + Best Practices: How AdvizorStack, SingleStore, and Buckler Deliver the Essentials of Cybersecurity Success

In a research survey conducted by Zippia , it is estimated that nearly 61% of finance professionals are over 40 years old. And with the minority 39% being younger, current employers are rushing to remedy imminent low participation in the financial workforce. The financial services industry has often grappled with an image problem among younger generations, who perceive it as overly traditional and dry. Yet, a career as a financial advisor can be rewarding, fulfilling, and intellectually stimulating. So, how can we encourage younger generations—especially Gen Z and millennials—to explore this career path? Let’s dive in. Rethinking Finance Education Firstly, it’s essential to make finance more accessible in education. Incorporating finance modules into curriculums early on can spark interest and break down misconceptions. As Annamaria Lusardi, Director of the Global Financial Literacy Excellence Center (GFLEC), says, “Financial literacy is like a language; the earlier you learn, the more proficient you will become.” An article by Wealth Management presents astonishing statistics stating that only 16.4% of US students have requirements to take a finance course and over three-quarters of millennials lack even the basic understanding and knowledge of finance. The misrepresentation and apprehension towards the finance industry lies in the issue that the younger generation lacks the exposure for them to have a true view on it. Increasing financial literacy within academic institutions would inherently manifest increased participation and boost in the field of finance. Harnessing the Power of Technology Growing up as digital natives, younger generations have a natural affinity for technology. The future of financial advising must capitalize on this inclination. By leveraging the power of fintech, the industry can create a dynamic and modern image that appeals to the tech-savvy younger generation. One encouraging metric is that 75% of millennials are reported to be using fintech platforms for their personal finance management, according to a survey by Citi. Therein lies the opportunity to show how a career in financial advising can be a pathway into this dynamic intersection of finance and technology. With the emerging and rapid integration of technology in finance, employers to understand that acquiring a new generation would not only remedy that concerning shortfall of younger talent but present a way for companies to acclimate and succeed in the everchanging digital environment . Ethical Investing and Social Responsibility Ethical investing is no longer a niche interest—it’s fast becoming the norm. A 2020 report from Morgan Stanley found that 95% of millennials are interested in sustainable investing. Financial advisors who are versed in ESG (Environmental, Social, and Governance) considerations have a unique advantage. According to Senior Advisor Dr. Zhang in an article by Forbes Advisor , many clients are concerned about many environmental and social problems. By enforcing ESG values, companies are sure to capture and create prospective employees of the younger generation who will find the appeal in making a difference for clients who have the same priorities as themselves. Therefore, positioning financial advising as a career that can contribute positively to society and the environment can be highly appealing. As Jessica Matthews, Head of Sustainable Investing at J.P. Morgan, notes, “Financial advising is not just about the numbers; it’s about making a positive impact.” Showcasing the Entrepreneurial Spirit Being a financial advisor offers the flexibility to start your practice, set your hours, and create your business strategies. This aspect of the job needs to be highlighted more to attract entrepreneurial spirits. Take young financial advisor Katie Jacobson as the embodiment of the young entrepreneurial spirit in the world of finance. As one of the only females to become a board CFP™ Professional under 30 in the US, she has been trailblazing her way through the financial industry serving clients the past 5 years at Northwestern Mutual. Having tangible testimonies from people like Katie ultimately serves as inspiration and encouragement for the youth – removing reluctance and realizing their potential to participate in this space. It’s worth noting that, according to a recent Deloitte survey, over 70% of millennials hope to be their own bosses someday. Presenting financial advising as a pathway to this goal can increase its attractiveness as a career choice. Mentorship and Success Stories The power of a good mentor can’t be underestimated. Pairing young people with successful, relatable financial advisors can inspire and demonstrate the diverse range of people working in the industry. Nationwide Retirement Institute conducted research that upholds the popular notion that “If I can’t see diverse executives in roles at every level of the corporate ladder, it can be difficult to realistically see myself advancing”. It is the mentorship that poses as the solution to facilitate career exploration and development for future job candidates. Additionally, sharing success stories can highlight the many ways a career as a financial advisor can be rewarding. Miami Life’s SVP of premium finance and advanced sales, Clarence Knox, for example, has given testimony proving the viability of mentorship in which he reveals and attributes his current position in the financial services industry to the mentors he’s had throughout his journey starting from his time in university. To quote Peter Mallouk, President of Creative Planning, one of the top independent wealth management firms in the U.S., “It’s a career where you’re always learning, always growing. And most importantly, you’re helping people secure their futures. It’s a profoundly satisfying profession.” Inclusion and Diversity Finally, demonstrating commitment to diversity and inclusion can significantly enhance the appeal of the financial advising profession. It’s important to show that financial advising is a career for everyone, regardless of their background, gender, or ethnicity. The financial sector has a long way to go in this regard, but strides are being made. According to a 2021 report by Oliver Wyman, the representation of women in financial services has increased from 16% to 20% in leadership roles over the past five years, which is a promising trend. Statistics like these show the correlation between valuing and prioritizing different perspectives and representation for minorities and a positive impact on attracting and retaining employees. In conclusion, to attract younger generations to financial advising, we must showcase the dynamism, impact, and entrepreneurial potential inherent in this profession. We need to leverage technology, prioritize education, and promote a culture of inclusivity and social responsibility. As we do so, we will build a future for financial advising that is as diverse and dynamic as the generations to come.

The stage was set for an electrifying NBA Finals as the Denver Nuggets compete with the Miami Heat in their quest for the NBA Title. As I immersed myself in the pre-game and post-game analysis, a striking realization dawned upon me: the landscape of basketball analysis has undergone a remarkable transformation, placing a greater emphasis on quantifiable statistics. Cast your mind back to the early 90s, when analysis revolved around basic qualitative insights. We were cautioned about the shooting prowess of Reggie Miller, the sharpshooting guard of the India Pacers, emphasizing the need to prevent his 3-point attempts. Fast forward to the present day, and we are enthralled by a new era of understanding where data can provide profound insights. Now, the focus shifts to players like Jamal Murray of the Denver Nuggets, with the detailed statics revealing his remarkable 87% efficiency from beyond the arc and the significant drop to 37% efficiency on his midrange jumpers. Data truly dictates that a team “plays by the numbers.” How Data is Changing Sports Firstly, it’s essential to make finance more accessible in education. Incorporating finance modules into curriculums early on can spark interest and break down misconceptions. As Annamaria Lusardi, Director of the Global Financial Literacy Excellence Center (GFLEC), says, “Financial literacy is like a language; the earlier you learn, the more proficient you will become.” An article by Wealth Management presents astonishing statistics stating that only 16.4% of US students have requirements to take a finance course and over three-quarters of millennials lack even the basic understanding and knowledge of finance. The misrepresentation and apprehension towards the finance industry lies in the issue that the younger generation lacks the exposure for them to have a true view on it. Increasing financial literacy within academic institutions would inherently manifest increased participation and boost in the field of finance. How Data Will Change the Financial Services Industry I currently see the financial advisory spectrum as being very similar positioned as teams in the NBA in the early 2000s where not all teams realized the importance of owning your data. When I use the term ‘owning your data’, I mean that you integrated all the tools that have your client data in one cohesive database. Effectively combining the data from source, A to Z to create a complete, comprehensive profile of your client. Data provides the ability to clearly, and quantifiably demonstrate the correct decision even if goes against current conventions. Data is not a mere collection of facts and figures. It’s a tool for unlocking insights, catalyzing innovation, enhancing client experience, and driving your firm’s growth. In basketball, the data shows that an open 3-point shot from the corner is worth more than a layup attempt. 20 years ago in the NBA, it would have been sacrosanct to propose that passing up a layup or a dunk would be a good idea. In the NBA, the data allows teams to game plan and understand players’ tendencies. Does Kobe go left or right more often? For advisors, understanding your clients has always been the cornerstone of a successful advisory practice. Data analytics can uncover invaluable insights into client behavior, preferences, and future financial aspirations. Stated simpler, uncover your clients’ tendencies, and be better able to anticipate their needs resulting in higher client retention, increased net flows, and client referrals. Beyond the Numbers: Revolutionize Your Practice The power of data goes beyond client interactions. It can also make a difference in managing internal operations. Data can highlight workflow inefficiencies, training needs, and resource allocation. Data in the NBA highlighted the underutilization of the 3-point shot. For example, by analyzing workload data, you might discover that certain tasks are monopolizing your advisors’ time, affecting their ability to focus on high-value interactions or tasks. This insight could lead to automating the time-depleting tasks, again freeing up advisors to engage more effectively with clients. Utilizing data properly will increase an advisory’s efficiency and free up more time to focus on what is most important to you: your clients. Risk management in financial advisory practice is another area where data can make a significant difference. This is the part where having data collected by different systems seamlessly integrated with data from other platforms to present a cohesive picture is important. One basic example is monitoring the risk level of the portfolio with the client’s risk tolerance. If there is a mismatch between the two, most portfolio risk monitoring software will provide an alert. However, not incorporating data from the CRM system could leave a firm exposed to risk. The portfolio risk is in line with the risk tolerance questionnaire, but what about the notes from the last meeting where the client expressed concern about the risk of the portfolio? Advanced analytics can help you identify patterns and correlations that might not be readily apparent, enabling you to spot potential risks and take proactive measures. Every person in the financial advisory world has had a client unexpectedly leave. What if the unexpected part could be anticipated? Using the data available, it might be possible to anticipate this and preemptively begin outreach to retain the client. Is a client logging in less or more frequently to the client portal than in the past? Innovation Driven By Data Data also holds the key to innovation in your practice. It can guide your technology investments by highlighting areas where digital tools can offer the most value. Perhaps you’ll find that an AI-based chatbot can enhance client engagement, or a sophisticated portfolio management tool can streamline your advisors’ work. By making data-driven decisions, you ensure that your technology investments yield optimal returns. In an era where transparency is a critical demand from investors, data can be utilized to satisfy this need. Through data visualization tools, RIAs can provide clients with a clear, visual representation of their financial situation, portfolio performance, and market trends. The visualization part is one of the leading reasons that clients are unhappy with their advisors and advisors are unhappy with their reporting system. Owning your data and having it organized allows for the freedom to import this data into a more visually appealing format. This means your own advisor experience, your client reporting and your end client experience become proprietary to your firm and your operations. Transforming The Future of Financial Advisors  The aim of data is not to replace human judgment and experience but to augment it. It is not always the prudent decision to pass up a layup for a 3, there are circumstances where this would be a suboptimal play. Data is a tool, and like any tool, its efficacy depends on how it’s used. Training your team to interpret and apply data effectively is as important as investing in the right technology. The modern era of financial advising is here: data-centric driven practices. The outlook of a financial advisory practice’s future will be dependent upon the ability and effectiveness of incorporating this potent tool. The wise management of data can offer a firm a competitive edge, enhanced client satisfaction, and, ultimately, a trajectory of sustainable growth. Will the corner 3 always be the best shot in basketball? I am pretty sure that will change at some point as teams evolve to limit the value of this shot; however, I am more than certain that data will drive this change.

Improve Financial Planning Process Gaining insights into leveraging technology and tools to streamline your financial planning process.