Brooke’s Note: The RIA custody business is an oligopoly that resists change mightily. But it needs, somehow, to change in order to avoid being marginalized. What to do? One good thing, in light of how the custody business is becoming so technology-centric, would be to take your former head of RIA custody and give him an internship as CEO of a fast-rising RIA software company thereby immersing him in a new process, mindset and culture. Fidelity seems to have stumbled on that very approach as Mike Durbin reaches the two-month mark as temporary eMoney CEO. You can see the effect that the software company and custody executive are having on each other.
In his first big act as interim CEO of eMoney Advisor, Mike Durbin did the unthinkable by handing the keys to the kingdom to the market leader and his new firm’s biggest competitor.
With the deal signed, MoneyGuidePro, which controls more than 25% of the financial planning software market, now has eMoney’s gem, emX, in its arsenal, too.
Most in the industry say that the value of emX, which serves as a dashboard for clients ...