The financial planning software market is a fascinating arena, and the recent move by Advisor360 to embed Conquest Planning's technology is a significant development. This move is not just about adding another feature to an already robust platform; it's about the future of advisor technology and the role of AI in transforming workflows. Personally, I think this development is a bold step towards a more integrated and efficient future for financial advisors, but it also raises important questions about the value of AI-connected workflows and the challenges of data integration.
The Integration Challenge
The integration challenge has long been a pain point for financial advisors. With multiple systems relying on the same client data, from custodial platforms to CRM, portfolio management, and specialized planning tools, the ideal scenario would be seamless data movement between platforms. However, despite decades of development of APIs, the integration capabilities of advisor technology remain inconsistent and often fail to live up to the promises of frictionless data movement. This is where all-in-one platforms come in, offering a single platform with an open flow of data between components, theoretically providing for one seamlessly integrated workflow.
The Rise of All-in-One Platforms
All-in-one platforms like Orion, Envestnet, Advyzon, Black Diamond, Advisor360, and many others have gained significant adoption over the years. The latest Kitces AdvisorTech Research shows that a majority of advisors (61%) use at least some type of all-in-one software. However, these platforms have never exactly dominated the market, and there's a persistent question of whether advisors are truly satisfied with these solutions.
Advisor360's Move into Financial Planning
Advisor360's recent announcement to add financial planning technology to its platform is a significant development. By embedding Conquest Planning's software directly in the platform, Advisor360 is not only adding another feature to its all-in-one platform but also consolidating advisors' data sources into its Unified Data Fabric. This move is a strategic step towards unifying the advisor's thread of work across planning, execution, and client management, and it's also about ensuring an uninterrupted flow of data to feed into Advisor360's planned AI agents.
The Role of AI Agents
The integration of financial planning software into Advisor360's platform is not just about gaining efficiency by reducing the need to click back and forth between software platforms. It's also about making sure there is an uninterrupted flow of data to feed into Advisor360's unified data layer so its planned AI agents can work as advertised. This is a new angle to the argument for all-in-one software, as full access to data from the systems that AI agents use is crucial for their full capabilities.
The Question of Value
However, the question going forward is whether the promised benefits of AI agents running over a unified data layer will be enough to convince advisors to switch financial planning platforms. The reality is that it's not certain that AI agents will actually yield the kinds of efficiency gains that AI adherents in the tech industry are promising. Advisor360 refers only to 'future enhancements that will surface planning-driven opportunities through built-in AI assistants', meaning that these agents haven't even been built yet.
The Bottom Line
While it's possible that some advisors will adopt Advisor360's embedded Conquest Planning tool based on the merits of the tool itself, it's debatable whether the ability to use Conquest embedded within Advisor360 is itself worth making the significant investment in time and resources of switching planning software. The healthy market for individual planning solutions shows that there's a material number of advisors who will be reluctant to jump to an all-in-one until there's compelling evidence that it will really make a difference to their bottom line. In my opinion, the future of advisor technology is exciting, but it's also a journey that requires careful consideration and a deep understanding of the needs and challenges of financial advisors.
