Unlocking value: AI, technology and the future of financial services

Ginevra Czech and Jeremi Karnell, SVP Head of Product for the Wealth Channel at Envestnet Data & Analytics discuss the impact of technology in financial services.

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May 24, 2023 | 21 minute read

About this episode:
How much is your financial practice worth and what drives that value? Where are the opportunities to unlock unrealized value? How are you preparing your business for the inevitable changes coming due to the impact of technology and AI? We sit down with the Truelytics team to learn more about their technology platform built for financial advisors and RIAs to help define practice value and analyze the health of advisory businesses, while exploring how changes like advisor demographics, consolidation and even AI are impacting the industry. Learn more at www.fsthrive.com and www.truelytics.com.

Transcript excerpt
Ginevra Czech (00:03):
Welcome back to FS Thrive, a podcast by FS Investments. My name is Ginevra Czech, director of Client Value-Add Programs, and today we’re talking with Jeremi Karnell, the SVP Head of Product for the Wealth Channel at Envestnet Data and Analytics. We’ve partnered with Jeremi to offer advisors access to a technology platform built for financial advisors and RIAs that help define practice value and analyze the health of your advisory business. Today we’re talking about how the tool works, what drives value for your advisory business and what action can you take to unlock possible unrealized value. And, finally, how are AI and technology going to impact the industry going forward? I hope you enjoy the conversation. Excited to be here today. I’ve got Jeremi Karnell from Austin, Texas, visiting us. He is the, what’s your official title over at Truelytics these days?

Jeremi Karnell (00:58):
Well, it’s no longer Truelytics. I’m the Head of Product for the Wealth Channel at Envestnet Data and Analytics.

Ginevra Czech (01:04):
Alright, awesome. And you might remember Jeremi from last summer when he joined Kyle Simpson, who formerly ran the Value-Add programs. I’m so excited to have you back with us today. Would love to see what you guys have been up to. And I think there’s some really relevant topics. We’ve obviously been talking a lot about AI recently. Um, curious about different trends that we’re seeing in the industry. So let’s, let’s just start with a, a quick refresher on, on what you guys are offering. Yep. And, uh, go from there.

Jeremi Karnell (01:34):
Great. So Truelytics was founded back at the end of 2016, early 2017 as a transition management platform. It was under the thesis that we needed to solve, help the industry solve for the fact that we were seeing major demographic pressure lead to what we’re calling a great transition. So that means we’ve got, I think, 40 to 50% of advisors are expected to retire in the next four to five years. And the problem in the industry was just a real overdependence on utilizing certified valuation analysts, professional services to do all of this type of work. And given the tsunami of transitions that were going to hit the industry, we thought, well, it’s probably about time that we brought digital transformation to the concept of how you value firms, how you can solve for continuity since 80% of the industry doesn’t have anything in place for that, and how you can better help with the matchmaking for people looking to grow strategically, people looking to exit the industry, maybe even people just looking for successors.

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Ginevra Czech

Director, Client Value-Add Programs

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