AdvisorEngine Inc., a digital wealth management platform, has acquired the assets of Kredible Technologies, Inc. (“Kredible”), a technology-enabled, research-driven firm targeting financial advisors with the goal of helping advisors modernize and enhance their online presence. Kredible research, including eye-tracking studies of high net worth clients, shows that approximately 72% of the clients surveyed said online information is “extremely” or “very” influential to who they hire.
Kredible’s direct benefits to the advisor include:
“Based on our research, more than 50% of new prospects indicate that they have eliminated a financial advisor from consideration based on what they did or didn’t find about them online,” said Brad Shepard, Kredible Founder and CEO. “The modern advisor must evolve to meet ever-changing expectations including the way their prospects and clients find them to determine if they are credible to manage their financial life and communicate with them on an ongoing basis.”
“This is just another step in our continued commitment to helping advisors grow their business and build deeper connections with their clients,” said AdvisorEngine co-Founder and CEO Rich Cancro. “We are super excited. Why? Well, consider that the first place prospects look for information about advisors is online. Research shows there is a large gap between how advisors present themselves online and how high net worth prospects are vetting which advisor to work with. Kredible helps close this gap to create a better online presence for advisors, ultimately earning them more business.”
“AdvisorEngine has been continuously focused on helping financial advisors scale and grow. Our investment in Kredible’s powerful, research-based marketing tools further demonstrates our commitment to the financial services space,” Cancro adds. “So many advisors struggle with building out a solid online presence; Kredible’s platform streamlines the process with the goal of acquiring new clients.”
Inertia Advisors, a division of KEMA Partners LLC, acted as exclusive financial advisor to Kredible in connection with the transaction. SenaHill Securities, LLC, a merchant bank offering a full suite of investment, operating and advisory services to the financial technology sector, acted as exclusive strategic and financial advisor to AdvisorEngine.
In November 2016, WisdomTree Investments, Inc. (NASDAQ:WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager driven by research and technology, made a $20 million minority equity investment in AdvisorEngine and announced a strategic agreement whereby WisdomTree’s asset allocation models would be made available through AdvisorEngine’s open architecture platform and WisdomTree would actively introduce the AdvisorEngine platform to its deep distribution network.
WisdomTree, in a joint announcement with AdvisorEngine made public on April 27, 2017, said that it would be making an additional $5 million investment in AdvisorEngine to continue to fuel its growth, leadership and innovation in the advisor solutions space. The strategic relationship hinges on a common goal: to help financial advisors grow their businesses and better connect with their clients in a rapidly evolving industry and regulatory environment. WisdomTree will be using Kredible’s innovative solution as it extends new practice management support and programs to financial advisors.
“The financial investment and strategic relationship with WisdomTree has allowed us to expand the AdvisorEngine platform to deliver an innovative and sophisticated set of tools that advisors can use to differentiate themselves from the competition. Add Kredible to the platform, and you have a deeper, broader layer of advisor growth solutions to complement our existing solutions.”
Thomas Skrobe, WisdomTree Head of Client Solutions, said, “WisdomTree and AdvisorEngine are committed to building a global advisor solutions program to help meet evolving client needs. With the wealth management industry changing quickly and significantly, financial advisors need to evolve the way they do business. Kredible’s solutions are a natural addition to our offerings, enabling advisors to differentiate themselves and grow their businesses through digital enhancements and modern techniques.”
Beyond WisdomTree’s ETF, ETP and CIT offerings, the Company provides access to an advisor solutions program, which includes portfolio consulting services, model portfolios and practice management, incorporating leadership, organizational development and marketing services.
“We’re thrilled to join WisdomTree and AdvisorEngine in this effort,” says Kredible’s Founder and CEO, Brad Shepard.
CLIENT / ADVISOR CONNECTIVITY
Kredible is the second acquisition announced by AdvisorEngine in 2017.
In February, AdvisorEngine announced the acquisition of Wealthminder, a goals-based financial planning technology that both streamlines the onboarding process and includes an easy-to-use digital prospecting tool that helps financial firms create and deliver advice, execute on that advice and monitor client progress.
“AdvisorEngine will continue to be an open architecture platform with key integrations to other financial planning tools and CRMs, as such tools are often very personal to the advisor,” Cancro said.
ABOUT ADVISORENGINE INC.
AdvisorEngine integrates online and traditional wealth management processes and workflows to help advisors build deeper relationships with their clients. Its open architecture platform provides fully customizable robo-advisor tools, dashboards to analyze and track business development online account opening and funding, billing, data aggregation and performance reporting. AdvisorEngine helps investment firms scale their existing business profitably and connect with the next generation of clients and advisors. More information about the firm, which is headquartered in New York, is available at www.AdvisorEngine.com.