Pershing Rides the Wove: INSITE Conference Summary

“ We believe that having a client success mindset is going to differentiate the winners from the losers.” — Jim Crowley, CEO, Pershing

For almost two decades, Pershing has been part of the “Big Three” RIA custodians, which shrunk from the “Big Four” after Charles Schwab’s acquisition of TD Ameritrade in 2020. While Pershing has always trailed Schwab and Fidelity in RIA assets, they have always been a leader in custody for broker-dealers.

This difference is most apparent at their annual INSITE client conference when there seems to be broker-dealer executives almost everywhere. Including a large contingent servicing Latin American clients and you can catch conversations in Spanish happening all around the expo hall.   

Last year’s conference made headlines for the launch of Wove, Pershing’s much-anticipated multi-custodial wealth management platform that had been two years in the making.  There was a lot of questions being asked last year such as “What exactly are Wove’s capabilities and can I use it?” and “If I deploy Wove, what happens to NetX360?” and “Will Schwab and Fidelity allow Pershing to access data from their clients?”

Many people I spoke to were initially skeptical of Pershing’s ability to execute on their vision for Wove, because of the immense scope of the project and their lack of experience building innovative software. But this is not unusual for a legacy custodian that markets their stability and their ownership by the conservative Bank of New York/Mellon. 

In other words, it was a huge lift, not many vendors have done this successfully, so we’re going to wait and see what Pershing can do.

The answers to those questions were answered at this year’s Pershing INSITE conference, which was held at the Gaylord Opryland Resort in Nashville, TN.  The product announcements were heavily focused on new functionality and companion services as well as expanding the ecosystem around the Wove platform. 

Pershing did not waste the opportunity to promote Wove and they delivered the message that it’s ready for prime time early and often. since there were 1,500 of their best clients in attendance!

Table of Conte​​nts

  1. Wove Announcements
  2. Fawn Weaver: The $1 Billion Entrepreneur
  3. Perspectives on Global Economic Trends
  4. Alternatives: Next Level Strategies For Unlocking Advisor Alpha
  5. Connected at the Core: A Unified Experience Across Custody and Advisory
  6. Growth Opportunities in Latin America: Perspectives from the C-Suite
  7. RIA M&A: Getting Ready for Your Deal
  8. RIA M&A: Merging Critical Data from Multiple Platforms
  9. Next-level Marketing: Drive Business Growth With Client Engagement
  10. From Bland to Brand: How to Create a Standout Firm Identity — and Why It Matters
  11. Morningstar: Three Practice Growth Strategies
  12. Turning Tech Pains Into Growth Gains
  13. Tech Takeover: Wove Data + Continuus Technologies
  14. Tech Takeover: ComplianceEdge
  15. Tech Takeover: PureFacts
  16. Tech Takeover: Wove CRM
  17. Tech Takeover: Wove Portfolio Solutions

Wove Announcements

During the main keynote session, Ainslie Simmonds, Global Head of Digital Strategy at Pershing and Head of the Wove platform, presented a list of new programs and services aimed squarely at the enterprise space and, in my opinion, at Envestnet. 

What new features have been added to the Wove platform?

While some may have questioned the choice of “Wove” for Pershing’s new multi-custodial platform, Pershing has gone all in on the name.  Simmonds announced the rebranding of a number of current products under the Wove brand: Wove Advisor, Wove Investor, Wove Data and Wove Connect. Together, these enhancements will help provide wealth practices with the tools they need to function—all in one place.

  • Wove Advisor – Formerly Pershing Managed Investments, it has been combined with a reskinned UI, and enhanced integrations between Wove, NetX360+ and Conquest financial planning. I saw a demo of the proposal generation and new account opening process and I was impressed! Certainly a huge step up from COB2 and I like the ability to switch between Wove, NetX360+ and Conquest Planning while maintaining client context. It’s still mostly in-app framing, but I care more about the advisor workflow and not having to re-enter data or reselect the client as I switch tasks.
  • Wove Investor – A client portal to view account information across multiple custodians (eventually), with self-service features to complete simple tasks, such as checking balances across investment accounts. Later this year they plan to add more functionality, including the money transfers, deposits and advisor collaboration through screen share and co-browsing.

  • Wove Data – A cloud-data platform designed to help the C-suite at wealth management firms handle large, multi-custody data sets and gain deeper insights into how advisor teams, operations and investment products are performing across their enterprises.  Pershing needed this to compete with Envestnet’s Wealth Data Platform and Orion’s Data & Analytics Platform.  More enterprise clients are building their own data ecosystems and to consume data from multiple data sources so they can generate business insights and unlock the unrealized value of their data.  This type of data platform is now table stakes for wealth management firms to maintain strategic growth.
  • Wove Connect – A multi-custody data marketplace that will bring together the NetX360®+ and Wove interfaces and third-party integrations. With these functions centralized, wealth management firms can manage their data faster, improve its quality and design their own data pipelines.

Simmonds shared some additional programs and services that were being introduced at the conference including:

  • Automated Account Opening: Streamlines the account opening process, reduces errors, and accelerates client onboarding.
  • AI Chatbot Integration: Implements  chatbots to handle routine tasks, reduce operational overhead, and improve client servicing.  We expect every custodian and platform vendor to offer some kind of chatbot like this. It will soon be table stakes for advisor and client support. 
  • Digital Adoption Consultancy Program: Aims to help wealth management firms adopt digital solutions faster and more efficiently. The program includes workshops, assessments, and roadmaps to assist firms in selecting and implementing digital tools.
  • Data Visualization Tools: Offers actionable insights through intuitive dashboards, empowering wealth management professionals to make data-driven decisions.
  • Model Portfolios: Provides curated model portfolios built and managed by BNY Mellon Dreyfus. The way this was explained to me sounds a lot like a TAMP offering where Dreyfus will trade the models and everything just rolls up into the Pershing custody account. I saw this as being accessible from the Wove Advisor proposal generation tool where the user could select an advisor model, a Dreyfus TAMP model or a third-party manager model such as BlackRock. 

In an informal survey, most attendees I spoke to gave these announcements a thumbs up. Although some were skeptical of Pershing’s ability to deliver in their proposed timeframe. I think Pershing has made tremendous progress in the past year and if they continue to execute on their strategy, they could soon give Envestnet a run for their money.

The conference content included a good mix of internal/external speakers with a wide range of sessions from RIA M&A to practice management to marketing to pure technology.  

If you did not attend INSITE, I highly recommend you add it to your calendar for next year. But even if you were there, you couldn’t have gone to every panel discussion or demo, so in this summary I’ve tried to provide a little taste from a range of different sessions. (See Ep. 174: Pershing X Goes All In On Financial Planning, with Ainslie Simmonds)

Fawn Weaver: The $1 Billion Whiskey Entrepreneur

I wanted to give a shout out to keynote speaker Fawn Weaver, the journalist-historian-turned-entrepreneur who launched a new whiskey brand called Uncle Nearest Premium Whiskey. In just a few short years, the company has become one of the fastest-growing and most successful American whiskey brands in history.  Fawn was interviewed by my good friend Christina Townsend, Head of Relationship Management at Pershing:

  • It was in 2016 while on a trip to Tennessee that Weaver first learned about Nathan “Nearest” Green, an enslaved man who taught Jack Daniel (yes, “the” Jack Daniel) how to make whiskey. She was inspired to create a brand that honored his legacy.
  • The company’s flagship product, Uncle Nearest 1856, is a premium aged whiskey made using techniques passed down from Green. It has won numerous awards and accolades since its launch in 2017.
  • In just seven years, Uncle Nearest has grown into a multi-billion dollar business with distribution in all 50 states and several countries around the world.
  • Weaver attributes the success of the brand to her commitment to authenticity, quality, and social responsibility. She also emphasizes the importance of building a strong team and empowering them to succeed.
  • The company recently announced plans to build a new distillery and visitor center in Shelbyville, TN, which will serve as a hub for tourism and education around the history of African Americans in the whiskey industry.

Perspectives on Global Economic Trends

This keynote discussion was with:

  • Jenny Johnson, CEO, Franklin Templeton
  • Hanneke Smits, Senior Executive Vice President and Global Head of Investment Management, BNY Mellon
  • Moderator: Carol Massar, Anchor, Bloomberg Businessweek TV and Radio

Both executives highlighted the importance of demographic shifts, particularly the aging populations in developed economies and younger populations in developing countries. They also noted the potential impact of disinflation, the reconfiguration of supply chains, decarbonization efforts, and digitization on future investment results.

Johnson emphasized the growing significance of US debt and cautioned against underestimating its longer-term implications. Smits mentioned the challenges presented by rising nationalism and populism, suggesting that these forces may hinder globalization and affect emerging markets.

Regarding the ongoing debate between active and passive investing, the speakers agreed on the necessity of incorporating both approaches in client portfolios to ensure optimal cost and performance outcomes. Smits further stressed the importance of addressing retirement planning and offering comprehensive solutions that consider clients’ liability structures and income needs.

On the subject of market manias, Johnson suggested that while certain sectors might exhibit signs of exuberance, overall market conditions do not appear to be in a bubble. However, both experts encouraged investors to maintain a diversified approach to mitigate risks associated with concentrated positions.

In discussing the evolution of the asset management business, Johnson and Smits addressed advancements in technology, including artificial intelligence (AI) and blockchain. While acknowledging the role of AI in augmenting analyst capabilities, they maintained that human judgment remains crucial in decision-making processes. They also touched upon the increasing demand for democratizing access to private markets and the potential role of tokenization in facilitating this process.

Lastly, the executives shared insights on current risks and future opportunities in the investment world. Johnson identified secondary private equity as a promising area, while Smits advocated for creating well-balanced portfolios tailored to clients’ unique needs and objectives.

Alternatives: Next Level Strategies For Unlocking Advisor Alpha

Matt Ragowski, CEO of Halo Investing presented an interesting breakout session that discussed how structured notes with enhanced participation rates and downside risk protection can be an efficient way to unlock investor capital.

With a twist on the classic core-satellite approach, Matt demonstrated how the capital efficiency created by structured notes, when included as a core position, can free up capital for higher alpha opportunities or other diversifying assets in a portfolio’s satellites.

Session attendees were surprised to learn how structured products are becoming a staple of portfolio construction techniques. More than one attendee commented how they like structured notes for strategic asset allocation purposes, not just tactical tilts. (See Ep. 220: Integration and Growth in the World of Structured Notes with Matt Radgowski)

Connected at the Core: A Unified Experience Across Custody and Advisory

This session was presented by:

  • Shawn Rodgers, Director, Head of Digital Professional Experience, BNY Mellon | Pershing 
  • John Berglowe, Managing Director, Head of Investor Experience, BNY Mellon | Pershing 

The session started off with the history of Uber and Uber Eats as a mental model to understand where Pershing is headed with NetX360 and Wove Advisory.  While Uber and Uber Eats are separately accessible apps, users also have the option to seamless access both inside of the same app (which is how I use them so I could relate to this).  

Both Uber and Uber Eats share the same underlying technology platform (e.g. location services, payments, driver/customer matching) which Pershing is copying by leveraging  their cloud data platform, alerts, and other core capabilities across multiple advisor-facing applications.

Rodgers emphasized that NetX360+ will continue to be Pershing’s custody portal and it will work with multiple advisory providers (e.g. Envestnet, Orion, Wove Advisory).  Each solves a different need and will share the same underlying platform (Wove).

They demonstrated the integration of Wove Advisory into NetX360+ by showing the new Wove block trading and rebalancing tools, proposals, and model management capabilities integrated into NetX360+.

They also demonstrated how the user interface design and navigation of both platforms are being redone to look-and-feel like one brand family.  This addresses key client feedback (e.g. customizable homepage content) and more AI-powered personalized navigation in NetX360+.

Growth Opportunities in Latin America: Perspectives from the C-Suite

There are tremendous opportunities in the private wealth management industry in Latin America.  LATAM is $1.5 trillion offshore market, with mid-teens growth potential.  Some large, global financial services organizations are divesting from LATAM, which is opening up opportunities for other players.

This panel consisted of:

The panel discussed the challenges of investing in Latin America, including liquidity issues and low returns.  This led into a conversation about methods of improving profitability including embracing technology to automate routine administrative tasks and free up time for advisors to spend with their clients.

LATAM wealth management firms utilize diverse tactics to achieve their objectives.  However, common themes revolved around harnessing technology, developing novel products, and nurturing skilled teams capable of meeting escalating client demands. 

Over the past decade the panelists reported a shift away from brokerage and towards advisory services in Latin America. This has forced producers to adapt to changing client needs and offer new fee-based products and solutions, which then requires firms to spend more on advisor education to build trust with clients.

  • EFG Capital International, a leading Swiss private bank, ranks among the top six in Switzerland, managing approximately USD $170 billion globally and USD $22 billion in Latin America. 
  • Bancolombia Capital, a 150-year-old financial entity, manages USD $18-19 billion locally and manages around USD $4 billion overseas in Miami and Panama.
  • Insigneo, a hybrid broker-dealer with 400 advisors and USD $16 billion in assets mostly in Uruguay and Argentina, supports four proprietary trading platforms catering to varied needs.

Throughout the conversation, participants frequently touched upon the significant impact of technology implementation in transforming wealth management services. Integrating AI, ML, and user-friendly interfaces enables improved productivity, insightful decision-making, and strengthened bonds between clients and their advisors. Furthermore, panelists accentuated the importance of staying compliant in the context of divergent regulatory landscapes and advocated for tailoring risk management mechanisms according to specific jurisdictional requirements.

RIA M&A: Getting Ready for Your Deal

The panel for this session consisted of: 

This session covered the following topics:  

  • Due Diligence.  When planning to enter a transaction, it’s important to take the time to get to know the other party.  This covers a number of areas including financial statements, books and records, technology, demographics of their clients and the sources of revenue. And from a buyer’s perspective, do not forget to spend time with key staff members learning about the people who will be there after the transaction and taking some time to get to know them.  
  • Capital Injection.  Growing a business organically is a healthy approach but relying on this alone will be restrictive if you have aggressive post-transaction growth objectives. If this is your plan, then you should consider taking outside capital, which can be in the form of debt or equity. Both types of capital have their own set of rules and must be evaluated against your goals. What kind of partner do you want to bring on? What kind of partner can you afford? 
  • Corporate Structure & Taxation. The approach to corporate structure should be addressed early and reviewed often as the business grows. This review must include the operating agreement as it may need to change with the expansion or contraction of the business.  
  • Control. Your view of control is dependent on which side of the deal you are on.  Does the business owner want to give up control as part of the deal or do they want to maintain some input in how the business is run post-transaction? Is the buyer ready, willing and able to take ownership of new employees and clients and incorporate them into their existing framework? All parties must be comfortable with who controls what in the relationship after the transaction is completed – this includes short-term and long-term decisions.

RIA M&A: Merging Critical Data from Multiple Platforms

Independent wealth management firms face numerous hurdles trying to unify data from the RIAs they’ve acquired. These include multiple tech stacks with incompatible CRM, portfolio management, financial planning and reporting systems. 

This session, moderated by Franklin Tsung, Growth Advisor, AppCrown, offered a solution to consolidating multiple platforms after an acquisition via their turnkey service bureau model. It comes with out-of-the-box integrations that deliver cleaner data to fast-growing enterprises that have implemented Salesforce as their CRM.

I had this panel circled on my calendar since it is an issue that we deal with on a regular basis at Ezra Group with our PE-backed clients who are on the acquisition track.  We’re always on the lookout for new solutions to make platform consolidation less painful. (See Ep. 127: $1 Million Worth of Platform Consolidation Advice from Kevin Adams, Edward Jones

The first recommendation from Tsung was that firms do not need to immediately consolidate tech and data from acquired RIAs into a single database. Instead, RIAs can deploy the AppCrown platform to act as a consolidation layer that can extract data from multiple source applications and pipe it into Salesforce which becomes the central data model. Insights can then be generated from the data using BI tools such as Salesforce CRM Analytics.

Tsung explained that AppCrown integrates with multiple portfolio management platforms as well as the Big Three custodians and top financial planning applications. This enables their clients to easily compile a consolidated view for each household, providing book of business insights that are critical before any acquisition. These insights act as a measure of QoE (“quality of earnings”), but in a “quality of book” capability.   

Raj Bhattacharyya, CEO, Robertson Stephens added a few additional points:

  1. Before signing any merger deal, get to know your potential partner very well. This includes a mutual understanding of a target client experience, the technology stack, growth targets, and whether there is a cultural fit.
  2. Having a great tech stack isn’t enough. It must be implemented properly, have a strong support team and users must be comfortable with it. If not, it’s like paying for a high-end gym membership without ever learning how to use the equipment. You need people to help integrate your tech into the advisor’s workflow to make optimal use of it.
  3. Robertson Stephens has a rigorous interview process that helps identify whether there is a good fit around people and process, and ensures that those joining understand the true economics that will be achieved by the acquisition. Too many business owners become distracted worrying about earnings before partner compensation (EBPC).

(See Ep. 126: The 3 Biggest Pain Points of Platform Consolidation with Molly Weiss, Envestnet

Next-level Marketing: Drive Business Growth With Client Engagement

Presentation by Julie Littlechild, Founder & CEO, Absolute Engagement:

The trends that are influencing client engagement and marketing are often similar; both are grounded in a deeper understanding of the needs of an ideal client and focusing communications on the things that matter most to them.

Demographics are impacting prospect and client expectations and preferences, but that’s not news.  More importantly, the most successful firms are going beyond expectations and preferences to build an experience around the needs, feelings and challenges of prospects and clients.  It’s all about understanding and capturing what is in their hearts of minds and designing an experience that reflects this. (See Ep. 183: Supercharging The Human Side of Advice with Julie Littlechild)

A deep understanding of the ideal client is critical to bringing the right people through the door.  At that point it’s important to focus on the individual, not the segment to which they belong.

While referrals are a key driver of growth, advisors must focus on other drivers of organic growth.  At the same time, few advisors are fully maximizing the referral opportunities in their businesses.

Personalization of content and communications can be daunting, however wealth management  firms can still use curated content by enhancing it with personal commentary and by sending content that reflects the specific needs of each client. 

Presentation by Candice Carlton, Head of Advisor Growth Marketing, Ficomm Partners:

  • Every RIA is trying to figure out how to drive organic growth, but driving leads at the corporate level is no longer enough – there has been too much pressure and focus here and it hasn’t worked.
  • RIAs need to think differently and firms need to diversify their organic growth levers.
  • Current opportunity – empower your advisors to  have personal brands, a digital footprint and marketing support to drive growth in their local markets.
  • People buy from people and not brands. Although having a good brand is essential, what prospects really want to know is who will I be working with and do they work with people like me.
  • It’s now essential for advisors to have the ability to build trust at scale with a digital footprint and presence to support prospects in making their buying decision.
  • The marketing answer is not the same for every advisor and is dependent on their ideal client and inherent strengths. Some will be phenomenal at YouTube others golf events and others podcasts. 
  • Free your advisors up to be one of your strongest growth levers and empower them to rock social, digital and video.

At Ezra Group, our experience has been the opposite to this.  We have found large RIAs ($5B+ AUM) have better success centralizing their lead generation and moving away from individual advisor marketing/referrals. Although there are exceptions, especially for younger advisors who have built successful marketing funnels through social media channels such as YouTube, TikTok and Instagram.

Michael Kitces recently gave a presentation about this topic where he showed that as RIAs grow, their advisors compensation grows to the point where it is unprofitable for them to spend any time on generating referrals and all of the growth comes from centralized marketing/lead gen.

Also, the client acquisition cost (CAC) of marketing strategies show that SEO and paid search are much more efficient than social media and other advisor-directed efforts. (See Ep. 200: Finding the Whitespace in Advisor Marketing Strategy, with April Rudin)

Source: Measuring The ‘Best’ Marketing Strategies And The Second Kitces Research Study On Advisor Marketing 

From Bland to Brand: How to Create a Standout Firm Identity — and Why It Matters

Kelly Waltrich and Melissa Thomas from marketing firm delivered an instantly actionable advisor branding workshop focused not just on conveying the importance of a strong, authentic brand, but also on arming advisors with the tools they need to refine their firms’ identities and make a more powerful impression on their target audience.

Key takeaways from the session included:

  • A Distinct Branding Disconnect. When Waltrich and Thomas polled the audience before the start of their session about whether they felt confident in their brands, 50% of the room agreed. When they asked the same question at the end of the workshop, no one raised their hands – a clear indicator that financial advisors have work to do when it comes to building the brand they really want.
  • How to Define a Firm’s Brand Identity. They then guided participants through a branding exercise very similar to the digital experience offered via’s proprietary technology platform, Advisor Brand Builder. Advisors were asked to define their brand’s personality, style, key differentiators, and even the type of car their brand would be, as well as how their clients view the value they provide.
  • Strong Branding in Action. The team also offered an example of a masterclass in branding from one of their most successful client firms, showing participants how to embrace authenticity, examples of clear, compelling messaging, and the power of layering a consistent style and tone throughout all their marketing assets and brand collateral. (See Ep. 161: Never Assume You Know the Market with Ryan George, Docupace)

Morningstar: Three Practice Growth Strategies

This session was delivered by Maeve Doonan, VP Sales, Morningstar.

In the current market conditions, there is increased risk of investor uncertainty and more channels for them to find information, much of it wrong and from questionable sources. 

This presentation explained three ways advisors can demonstrate the value of their advice and give clients confidence in their services: 

  1. Drive personalized conversations that connect to the unique needs of each client.
  2. Clearly articulate the value of advice with reports and visuals.
  3. Be prepared to engage the evolving investor if they ask about alternative investments.

Key drivers of the three strategies. According to Morningstar’s recent report, “Four Opportunities to Elevate the Advisor-Client Relationship through Personalization Insights from Morningstar’s Voice of the Advisor Research.” (Morningstar, 2023). Insights from Morningstar’s Voice of the Advisor Research | Morningstar

  • Build trust based on their needs: When asked what qualities they look for in their financial advisor: 56% of investors say that personalized and tailored financial advice that meets my specific goals, 47% look for alignment to their risk preferences, 42% say their advisor’s ability to communicate complex financial concepts in an understandable way.
  • Get ready to talk about alternatives and non-traditional investments: 14-19% of AUM comes from alternative asset classes, based on advisors who offer a wider-range of investment products. 
  • Stay competitive in the market: In the next 12 months, 30% of advisors plan to offer at least one additional investment product type and 27% plan to offer at least one additional service.

Software to the Rescue: How can Morningstar Advisor Workstation (MAW) help?

  • MAW has been the most widely adopted applications in the industry for many years due to Morningstar’s incredible penetration into the broker-dealer space. The firm claims 200,000 paying users.   
  • The most popular features of MAW are investment research and proposal generation. But MAW’s risk-tolerance questionnaire and connected risk score helps clients understand their appetite for risk, so advisors can provide recommendations that suit their preferences. Their academically validated, psychometric questionnaire (through their 2020 acquisition of Finametrica) that has been taken more than 2 million times over the past 20-plus years.
  • The investment analytics tool provides data across a wide range of asset classes and can screen for over 100,000 investments across 20+ categories, from traditional funds and ETFs to public models, variable annuities, and structured products. (See Ep. 238: Breakaway Blueprint with Morningstar Office)

Turning Tech Pains Into Growth Gains

This panel discussion included:

The panel discussed the importance of automation in financial services, citing examples of how it can simplify workflows and improve the client experience. Evans emphasized the need to integrate revenue strategies into relevant systems, allowing for automated account management and portfolio construction. Bryan Kucholtz shared his experience of needing to upgrade technology to retain top talent and attract new advisors, stating, “If I want the best people, they expect better things than what we have.” 

In 2021, Steward Partners moved up to #20 on Barron’s top 100 RIA firms list.

When asked about creating differentiation and retaining advisors and their assets, Gurupackiam highlighted the importance of customization and providing a wide range of options to meet various investor needs. From a technology efficiency standpoint, the group agreed that integrating systems and ensuring smooth data flow between applications are crucial for success. However, they warned against rushing into implementing artificial intelligence (AI) without establishing a strong foundation first. (See Pershing wins $27-billion Steward Partners RIA custody account after Goldman Sachs boots launch and pressure built for an alternative to ‘jilted’ Raymond James)

The conversation shifted towards the home office experience, with panelists noting the importance of addressing back-office operations and collaboration between departments. Measures such as improving communication, setting clear expectations, and utilizing technology to facilitate workflows can lead to increased productivity and happier employees.

Lastly, the panel addressed enhancing the investor experience through technology. Factors such as user interfaces, ease of use, and generating actionable insights from data were mentioned as critical areas of improvement. As Gurupackiam noted, “Understanding financial identities of clients sets the stage for meeting their distinct needs.” (See Ep. 231: Transforming Complexity into Clarity: Financial Planning Data Insights with Mark Evans)

Tech Takeover: Continuus Technologies + Wove Data

Pershing announced the launch of Wove Data at the conference and said it is an integrated, cloud data platform to provide wealth management firms with access to real time data through direct sharing and the ability to manage multi-custody data to generate their own custom analytics.

In a presentation delivered by Lucia Haswell, Data Application Developer, Continuus Technologies and Mark Rutledge, Director, Product Management, Pershing Wove, we learned that Pershing has partnered with Continuus Technologies to develop a Snowflake Native App to help wealth advisory firms unlock strategic growth and operational benefits through data. The application will allow firms to manage their transaction data in real-time and make necessary adjustments to share back to Pershing, monitor related data assets in one place and blend their own data or third party provided datasets for a holistic enterprise analytics view.

The Snowflake Native App Framework was launched in June 2022, allowing developers to build and deploy applications 100% directly within the Snowflake data platform. Unlike conventional SaaS apps, Snowflake Native Apps run within end customers’ existing Snowflake accounts, allowing developers to bring their application code directly to their customers’ data. This means data doesn’t have to be moved or shared, so developers can deliver optimal functionality without having to touch sensitive customer data.

The Transaction Data Management application provides firms a way to unlock the value of both the Wove Data platform and Snowflake’s data cloud capabilities. This application offers a comprehensive view of multi-custodial data, with the ability to drill down, analyze, and reconcile discrepancies, as well as the capability to send transaction reconciliations back to custodians and other data providers – all in one place and powered by Snowflake’s data cloud capabilities. 

Upcoming data management tools shared during this session included ones that will be powered by GenAI and natural language processing (NLP) to enable operations teams to proactively identify data anomalies and support exploratory analysis of performance data at an enterprise level. (See Building Greater Client Trust with Data Aggregation Tools)

Tech Takeover: ComplianceEdge

ComplianceEdge, a trade supervision and account monitoring platform enables Compliance Officers to drive change and mitigate risk with streamlined processes. Critical supervision and monitoring alerts are embedded in the Wealth Ecosystem, allowing precise business segmentation, client suitability adherence, and alert trending across books of business in an intuitive and highly configurable system.

Please join us for a look into innovative trade supervision and account monitoring.

Jeff Cowley, President, InvestEdge demoed ComplianceEdge, which is the primary external compliance application and it is being offered with Wove.

ComplianceEdge offers a wide selection of features, including:

  • The ability to define different personas, each of which can have their own breakpoints.
  • A robust rules engine that supports multiple levels of rule configuration such as per business segment to reduce false positives, identifying brokerage accounts with too much churn in commissions or RPM managed accounts without enough activity, but exempting third party SMAs.
  • Defining different rules for each program
  • A consistent UX from front to back office
  • Tightly integrated with Wove
  • A trade blotter for the supervision team that can review all solicited trades with alerts
  • An account alerts screen
  • Alerts of complex products purchase
  • Reports that are designed to satisfy the SEC when they ask for evidence of client reviews or other regulatory requirements 

Tech Takeover: PureFacts

Jeff Marsden, CPO and Gil Quesnelle, Director of Growth at PureFacts Financial Solutions presented in the Tech Takeover Zone.  Last year, Pershing announced their partnership with PureFacts as the default billing solution when they launched Wove.

PureFacts offers an end-to-end revenue management platform for wealth management firms.  Marsden explained that there is a massive revenue opportunity locked in the existing revenue lifecycle due to these billing issues:

  1. Challenges in monetizing all value; 
  2. Pricing effectiveness; 
  3. Payment timelines (slowness in getting cash); 
  4. Growth friction; 
  5. Operational inefficiency, &; 
  6. Leakage from data efforts, input errors and processing errors.

They discussed how PureFacts and Pershing are working together to help Wove clients find and unlock revenue in how they calculate, collect, distribute, incentivize and optimize their revenue lifecycle.  According to Marsden, there is an estimated $1 billion dollars of revenue optimization opportunity available for Pershing clients.

PureFacts closed a $37 million strategic financing round in December 2021 led by The Canadian Business Growth Fund (CBGF) with participation from The Bank of Nova Scotia, and Round13 Capital.

Deploying economic incentives, such as compensation incentives for advisors, can improve revenue performance.  Purefacts claims their billing optimization has these advantages: 

  • a data model purpose-built for revenue management
  • a massive universe of data to draw analysis from and inform models
  • the ability to run billing simulations 
  • huge processing power – they process between 1-2 billion revenue and/or incentive calculations a month 
  • domain expertise – they have been in the billing space since 2010.

While the vast majority of advisory fees are collected by account debit, there are complexities around how accounts are grouped, billing transparency, as well as invoicing and payment processes for non-account billing. Also, there are new complexities with multi-custodial arrangements and the added complexities that come from custodial account-agnostic sleeves.

Marsden also promoted some of the coming AI enriched insights and recommendation capabilities including:

  • Fee Pricing Optimization: will use a blend of AI, advanced analytics and benchmarking to identify fee pricing anomalies, measure potential and provide guidance on pricing.
  • Anomaly Radar: Identifies exceptions in data that would potentially contribute to leakage or other risks.
  • Retention Alerts: Will identify Clients and Advisors that have a higher risk of attrition in the next 12 months. Part of successful end-to-end revenue management is reducing leakage via churn.  

Tech Takeover: Wove CRM

This session was presented by:

  • William Pierce, Director, Product Management, BNY Mellon | Pershing X 
  • Adam Stolz, Senior Vice President, Product Management, BNY Mellon | Pershing X 

During the CRM tech takeover session at INSITE, the Wove team showcased their expanded Salesforce integration. The focus was on the bidirectional, workflow-oriented synchronization of prospect creation between Salesforce FSC and Wove. 

This integration was one of the ones showcased by Wove President Ainslie Simmonds at last year’s conference. With so many enterprise firms adopting Salesforce FSC, it’s become a critical integration for all portfolio management platforms.

At Ezra Group, we are seeing more of our larger clients customizing their Salesforce instances with advisor dashboards, specialized account opening and targeted reporting. Having two-way data access from/to Wove will be table stakes for their clients.    

This session showed some useful reports in Salesforce that were populated with Wove data including Top 10 Holdings and Recent Activities at both the client and account levels. They can also send New Prospect Alerts to keep advisors informed. 

Once a prospect is created, the data flows across six modules for advisors – Wove Alerts, Financial Planning (via Conquest), Proposal Generation, Account Opening, Trading, and then back to Salesforce – all within the Wove workflow engine. This integration eliminates the need for advisors to switch between applications, providing a seamless user experience.

It is important to note that this data synchronization occurs in bulk between Wove and Salesforce and can accommodate various client-side customizations.

Tech Takeover: Wove Portfolio Solutions

This session was presented by Melissa Jakubowski, Director, Product Management, BNY Mellon | Pershing X. 

Wove’s Portfolio Solutions suite of apps lets users tap into a universe of proprietary and third-party investment strategies and provides access to tools to enhance their investment processes. 

This is a new outsourced investment ​​service that leverages BNY Mellon’s RIA for model building and overall investment strategy and Pershing’s trading team to implement the models. 

Advisors can research investments, create custom portfolios, and present a comprehensive proposal for implementation, all while reflecting the advisor’s own investment process and (hopefully) reducing the time that would be required to this on their own. 

Advisors can also use the analytics tools to compare models offered by BNY Mellon Investment Services as well as compare their own models against each other.

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The Wealth Tech Today blog is published by Craig Iskowitz, founder and CEO of Ezra Group, a boutique consulting firm that caters to banks, broker-dealers, RIA’s, asset managers and the leading vendors in the surrounding #fintech space. He can be reached at