Fintech is diving into digital advice under watchful eyes
GBST, a provider of cloud-based software-as-a-service (SaaS) wealth management technology, has announced the acquisition of WealthConnect, a digital advisory practice, customer relationship management (CRM) and compliance system.
WealthConnect, which operates within the US-based Salesforce platform, streamlines workflows and helps advisors manage client relationships, portfolios and administrative tasks more efficiently, offering back-office management and front-end digital solutions.
Advisers have a renewed and urgent need to provide effective practice management services and demonstrate value for money, GBST argued in a recent statement.
Therefore, GBST CEO Robert De Dominicis said the acquisition is the “next logical step” in the company’s growth.
“We are excited to welcome the WealthConnect team into the GBST family and connect our wealth management expertise and products with their advisor practice and CRM capabilities,” said De Dominicis.
He pointed to the importance of properly integrated fintechs, with WealthConnect being a standout as GBST assessed the adjacent wealth management CRM market.
“The addition of WealthConnect expands our suite of cloud-based technology offerings that will deliver innovation and efficiency to advisory and wealth management businesses while driving better client outcomes.”
According to GBST, the acquisition of WealthConnect provides a complementary solution to its existing SaaS wealth management offering.
Specifically, WealthConnect is the flagship of Creativemass Enterprises, headquartered in Melbourne. As of last month, Creativemass is being discontinued.
As such, Peter Worn, joint managing director of global technology consultancy Finura Group, reviewed the transaction.
“GBST has acquired Salesforce-based ‘WealthConnect’ financial planning application from defunct Creativemass.
“Given the circumstances of the Creativemass business, it may take some time for the new owners to understand what they have bought and, most importantly, do they have the right team to execute?”
Mr. Worn hinted at a trend of platform technology providers moving into advisory technology, along with a struggle to differentiate themselves in this growing space.
Concluding that “jumping out of the lane carries a risk”, Worn said Finura will be “watching with interest to see how it unfolds”.
GBST has also been the target of acquisitions in the past, most notably a successful bid by a unit of the New Zealand branch of investment bank Credit Suisse, FNZ Group, in 2019. FNZ would then sell the wider GBST business to Anchorage Capital Partners before repurchasing its capital markets division in 2022.
