Accelerating Growth Within the Fragmented Wealth Ecosystem

The wealthtech landscape is evolving rapidly, providing financial advisors and wealth management firms with unprecedented opportunities to enhance their services. As the marketplace buzzes with innovation, there's a significant opportunity for specialty and challenger wealthtech platforms to reshape the wealth management sector. 

Platforms that can successfully weave their advanced solutions into the existing fabric of the wealth ecosystem aren’t just filling gaps. They're defining the future of wealth management—and capturing market share along the way.

One major challenge for these challenger platforms, however, is the fragmented nature of the wealthtech ecosystem. According to Morningstar, about 90% of wealth firms use between four and seven different specialty tech platforms, and some use even more.

Choosing the best providers for specific tasks allows advisors to tailor their technology setups to fit their unique needs and processes. However, this best-of-breed approach can complicate things for the selected platforms, leading to: 

• Inefficiency: The shift toward multi-custodial strategies, particularly among advisors who serve high-net-worth clients, introduces overhead for challenger wealthtech platforms. It compels them to establish and manage many more custodial connections than in the past, significantly diverting resources. Instead of competing with legacy platforms through their enhanced product offerings, these challengers must catch up by dedicating time and resources to building and maintaining ever-expanding custodial networks. This strategic misallocation not only diverts resources but also frustrates the challenger firms as it impedes their ability to compete and differentiate based on innovation in a competitive market.


• Complexity: Similarly, employing various best-of-breed specialty and challenger providers for different advisory tasks can create a disjointed overall experience for advisors if fit-for-purpose data doesn’t flow seamlessly between the various tech platforms. This adds an additional layer of complexity for challenger and specialty platforms, which must not only establish custodial connections but also ensure bidirectional data flows between multiple tech platforms.

The growth in the number of custodians and technologies employed underscores a critical challenge for emerging tech platforms—market expansion is dependent not just on building better products but also on their capacity to integrate with a diverse set of platforms and data providers. The lack of standardization and the need for tailored solutions to facilitate integration across diverse systems are common pain points. This highlights an urgent need for innovative solutions that can streamline and simplify these integrations.

Comprehensive data networks that streamline data integration and ensure data consistency can help by:

• Allowing data to flow seamlessly between various players in the wealth ecosystem
• Ensuring data consistency across platforms and throughout the client workflow.
• Making it easy for advisors and firms to leverage new platforms—and change platforms as needed.
• Enabling wealthtech platforms to seamlessly integrate their services into the existing fabric of the wealth ecosystem

Offering fast, seamless, and reliable access to financial data through a single, secure connection, the ByAllAccounts Data Network streamlines the flow of financial account data across wealthtech platforms, wealth management firms, custodians, and financial data providers. In fact, ByAllAccounts is the only aggregator that provides permissioned aggregation at the advisor, firm, and consumer levels.

We also facilitate critical integrations between the various technology platforms themselves, ensuring that all systems can communicate with each other effectively and efficiently. The streamlined data exchange removes friction from the ecosystem and enables wealth management firms to deliver a seamless and comprehensive service experience.

For multi-custodied advisors, the ByAllAccounts Data Network makes it not only possible but simple for advisors to provide highly personalized recommendations and service. They can add to and change their tech stacks at will—confident in the knowledge that the data on which they and their clients rely will be accurate, accessible, and consistent.

By eliminating the need for multiple data integrations, ByAllAccounts offers you a single, secure gateway to financial data, which allows wealthtech platforms to:

• Radically simplify data exchange. A single connection to our network opens access to 15,000+ data sources, ~ 200 custodial feeds, 70+ redistribution platforms, and 50+ wealthtech platforms. With one connection to ByAllAccounts, a data consumer unlocks all of the data sources, and a data provider unlocks all of the data consumer side.
• Ensure consistency. Regardless of sourcing, we normalize and enrich the data into a uniform format. We then tailor the output to your unique requirements, ensuring compatibility and ease of integration with your receiving systems.
• Slash time to market. Shave months (or more) off the time it takes to add new custodial data feeds and onboard new advisors.
• Provide a seamless UX. When there are data issues within a platform, most users instinctively blame the platform. By providing data portability and ensuring accurate, consistent data, ByAllAccounts helps to give your users an optimal experience with your platform.
• Cut costs. Save significant time and resources previously lost in the maze of custom integrations. Our data network rivals the extensive custodial connections of legacy platforms, accessible to you at an affordable cost.
• Focus on your business—not the data. Focus on innovation and new opportunities while we handle the complexities of data integration and distribution.

Learn more about the ByAllAccounts Data Network—and how we can help wealthtech firms, data providers, advisors, and wealth management firms ensure a frictionless experience for their clients. Download our guide, or contact the ByAllAccounts sales team to learn more or request a demo.