Wormus on WealthTech: Is SMArtX a FinTech or a TAMP? - DEV

SMArtX CTO Aaron Wormus recently joined Craig Iskowkitz, the founder of Ezra Group and a well-known fintech expert, on his podcast WealthTech Today. Centered around examining the inner workings of the SMArtX technology, the conversation gets to the heart of what makes SMArtX different from other TAMPs and technology solutions in the advisory industry.

But first, let’s answer the question that Craig wanted to clarify right off the bat: What exactly is SMArtX?

FinTech or TAMP?

SMArtX is, in fact, a FinTech solution first and foremost. While SMArtX does offer an out-of-the-box solution that most closely resembles a TAMP, identifying as a FinTech is a key part of the firm’s identity that most closely aligns with how to support advisors, managers, and other users.

The SMArtX superpower is strong engineering around core competencies. That means a direct focus on providing a one-of-a-kind experience for advisors and managers that fits in easily with the rest of the existing technology stack—without pigeonholing users into every component of SMArtX’s full-service offering.

The differentiation is both a single sign-on experience and a beautiful user interface with integrations through core components via APIs or web components. But what does that actually mean?

Integration & the Value of Open Architecture

On the podcast, Aaron and Craig went on to discuss SMArtX’s core component integration, allowing users to pick and choose which parts of SMArtX’s technology they need, and to integrate it into their existing infrastructure. Unlike other FinTech firms that are vying to be the sole platform for advisors and managers, SMArtX recognizes the value in providing users with choice.

This open architecture model allows SMArtX to remain unbiased about other technology platforms that advisors and managers may want to leverage in their practices.

While the term “open architecture” has become a buzzword in FinTech today, Aaron explains that SMArtX sees it as an opportunity to hone in on a highly specialized service: UMAs and managed account trading.

Providing users with a choice to integrate into their platforms affords the opportunity to fully own the client experience. It also uniquely separates them in the managed account technology arena.

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Of course, it wouldn’t be possible to provide users with the experience they’ve come to know and love without technologies that move the needle. A technology expert, Craig was interested in learning about some of the efforts SMArtX uses to deliver to trades, integrate more seamlessly with other platforms, and provide an amazing client experience. Aaron highlighted several platforms, including AWS, Flyer Technologies, Serverless, QuickSight, and Redshift.

These technologies empower better management of data from several sources and provide users with actionable views no matter which integrations they use. AWS, QuickSight, and Redshift power the visualization engine that provides ready-to-use analytics to customers.

Data is the heart and soul of SMArtX. Clients should always have the data they need at their fingertips so they can make confident decisions quickly and efficiently. And without the technology solutions that Aaron discussed in detail on the podcast, that would not be possible.

Listen to Aaron Wormus & Craig Iskowitz at WealthTech Today

This recap just scratches the surface of the full conversation between Aaron and Craig.

If you’d like to learn more about SMArtX and its technology infrastructure, check out the full episode. Head over to WealthTech Today or download the episode wherever you listen to your podcasts.

Understanding the Benefits of Modular Wealth Management Solutions

Modular wealth management solutions, like those offered by SMArtX, provide financial advisors with the flexibility to customize their technology stack according to their specific needs. This approach allows for tailored integrations that enhance operational efficiency, enabling firms to adapt quickly to changing market conditions and client demands.

For instance, by allowing advisors to select only the components they require, SMArtX empowers them to optimize their workflows and focus on delivering personalized services to clients. This flexibility contrasts with traditional TAMPs, which often offer a one-size-fits-all solution that may not meet the unique needs of every advisory firm.

Integration Capabilities: Enhancing Operational Efficiency

Integration capabilities are crucial for modern wealth management platforms, as they enable firms to connect disparate systems and streamline processes. SMArtX's open architecture allows for seamless integration with various third-party applications, ensuring that financial advisors can leverage the best tools available in the market.

For example, SMArtX integrates with platforms like AWS and QuickSight, enhancing data visualization and analytics capabilities. This not only improves the user experience but also allows advisors to make informed decisions based on real-time data, ultimately leading to better client outcomes.

Comparing SMArtX to Traditional TAMPs

When comparing SMArtX to traditional TAMPs, it becomes evident that the former offers a more flexible and innovative approach to wealth management. While TAMPs typically provide a comprehensive suite of services under a single umbrella, SMArtX focuses on modularity, allowing firms to choose the specific features that align with their business models.

This distinction is significant as it enables financial advisors to maintain greater control over their operations and tailor solutions to meet client needs. By leveraging SMArtX's technology, advisors can enhance their service offerings and differentiate themselves in a competitive marketplace.

The Future of Wealth Management Technology

The future of wealth management technology is leaning towards more integrated and user-centric solutions. As firms increasingly recognize the importance of technology in enhancing client experiences, platforms like SMArtX are at the forefront of this evolution, driving innovation in the industry.

With advancements in cloud computing and data analytics, SMArtX is poised to lead the charge in transforming how financial advisors operate. By continually expanding its integration capabilities and modular offerings, the company is setting new standards for efficiency and effectiveness in wealth management.