Fintech dips 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 management, customer relationship management (CRM), and compliance system.

Operating within the US-based platform Salesforce, WealthConnect streamlines workflows and helps advisers manage client relationships, portfolios, and administrative tasks more efficiently, offering back-office administration and front-end digital solutions.

Advisers have a renewed and pressing need to provide efficient practice management services and demonstrate value for money, GBST reasoned in a recent statement.

Hence, GBST chief executive Robert De Dominicis said the acquisition is the “next logical step” in the company’s growth.

“We’re 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,” Mr De Dominicis said.

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 broadens our suite of cloud-based technology offerings that will deliver innovation and efficiencies to advisory and wealth management businesses while driving better customer outcomes.”

According to GBST, the acquisition of WealthConnect provides a complementary solution to its existing SaaS wealth management offerings.

Specifically, WealthConnect is the flagship product of Creativemass Enterprises, with headquarters in Melbourne. As of last month, Creativemass is in liquidation.

As such, Peter Worn, joint managing director of global tech consultant Finura Group, appraised the transaction.

“GBST has acquired Salesforce-based ‘WealthConnect’ financial planning application from the liquidation of Creativemass.

“Given the affairs of the Creativemass business, it may take some time for its 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 transitioning into advice technology, alongside a battle to differentiate in this growing space.

Concluding that “jumping out of your lane comes with a risk”, Mr Worn said that Finura will “watch with interest to see how it unfolds”.

GBST has also been the target of acquisitions in the past, most notably, a successful bid from a unit within 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 re-acquiring its capital markets division in 2022.