The Road to Digital: Q&A with Osaic’s Mike Allen  

WealthTech is driving significant transformations in how firms deliver client services as they strive to remain competitive. These innovations are enhancing accessibility, efficiency, and personalization, making wealth management more inclusive and effective.  

Those that successfully integrate the latest solutions, including artificial intelligence and Machine Learning, while retaining the human touch will lead the way in meeting the evolving demands of both a more tech-savvy younger generation and traditional high-net-worth clients seeking personalized services. 

Mike Allen, SVP of Digital Solutions at Osaic, shared his thoughts with Connect Money on the evolving WealthTech industry and recent milestones in its Journey to One platform. Allen discussed the burgeoning opportunities for financial advisors and their clients, which technological advancements are having the greatest impact, the integration of AI, the outlook for the industry over the next several years, and more.  

CM: Can you define WealthTech, as you understand it, and explain the opportunity for financial advisors and their clients?  

MA: WealthTech, a key subset of FinTech, encompasses the tools, technologies, and companies that help financial professionals do their work. Three main factors are driving its growth:  

• First, an aging financial professional population—43% of financial professionals are 55 or older —creating a growing demand for succession planning.  

• Second, the advisory industry is projected to see a 17% increase in demand by 2033, far outpacing other industries, which will likely lead to more technology options for financial professionals.  

• Third, technological advancements, like AI that boost productivity across the industry. Accordingly, as WealthTech continues to evolve, it will likely offer financial professionals more ways to expand their businesses while improving profitability through increased efficiency. 

CM: What technologies are changing the wealth management industry the most? 

MA: If you ask 10 tech experts about the future, you’ll get at least 11 opinions. However, the key technology trends shaping wealth management aren’t that different from those in other industries. With rapidly decreasing computing costs and rising mobility, everything is getting better, faster, cheaper—and more mobile and instantaneous. This shift has fueled the rise of mega-tech companies like Amazon, which have trained consumers to expect exceptional user experiences that are personalized to their needs.  

In recent years, AI has also become a major player, benefiting from increasingly cheaper computing power. This has unleashed a wave of new technologies: AI-powered vendors, robo-advisors, digital onboarding, and blockchain. The WealthTech space is about a decade behind the big tech players, and all these technologies will soon become increasingly important, perhaps essential, for financial professionals. The real winners, though, won’t be those that adopt one technology versus another—they’ll be the ones who seamlessly blend these innovations into something that feels simple, intuitive and natural.                   

CM: Discuss Osaic’s approach to digital transformation and recent milestones in its Journey to One platform. 

MA: Before I joined Osaic, the firm made the strategic decision to consolidate its acquisitions and systems, with an eye toward future growth. For years, the firm had been bogged down by outdated systems that required constant patching, making evolving its systems nearly impossible. 

Now, we have created a single ecosystem that we developed and manage in-house and as we near the end of this phase, we’re starting to see the benefits of this labor. With each system we integrate, we’re also investing in enhancing the user experience and ensuring our platforms create an integrated experience that meets the evolving needs of the financial professionals we support.  

It’s been an incredible learning journey, and at times very humbling, but ultimately, we’ve been fortunate to collaborate with amazing partners among our financial professional community, who have co-designed many of our new systems with us. As we look ahead, 2025 is starting to look like it will be an excellent year.  

CM: How integral has AI become to wealth management? 

MA: It really depends on who you ask. Most financial professionals report they’re starting to experiment with AI tools like ChatGPT, but they’re not yet integrating them into their core business activities. In other words, AI isn’t integral just yet.  

However, it’s evolving rapidly. I believe AI will soon have a significant impact on how wealth managers operate, though more as a productivity booster than a competitor. Think back to 15 years ago when real estate search engines were first predicted to spell the end for realtors. Did consumers stop using agents? No—in fact, the market grew. Why? Because people value emotional connections and experience, especially when making big decisions. AI will have a similar effect in wealth management. While the role of the financial professional may evolve, the core value they provide to their clients will remain unchanged.     

CM: What are the crucial technological pain points that advisors are currently experiencing? 

MA: The common pain points in the industry include integrations, data security, compliance, meeting client expectations, and differentiating through branding and service. However, how these issues manifest often depends on the size and capabilities of the firm.  

Financial professionals at smaller firms typically rely on out-of-the-box solutions, where system incompatibility between vendors becomes a major frustration. One financial professional compared it to trying to mix Lincoln Logs with Legos. On the other hand, financial professionals at larger firms are often stuck with outdated systems where compatibility is seamless between tools, but the financial professionals are left craving missing features that the out-of-the-box vendors have.    

CM: How can wealth management firms help overcome those pain points for their advisors? 

MA: One of the key reasons I joined Osaic was the leadership team’s willingness to make tough decisions. Consolidating systems is not for the faint of heart—it’s a high-risk, high-cost strategy. You only take this kind of action if you have big plans for the future. 

Wealth management firms essentially have two paths to choose from: They can build integrated platforms that combine various tools—financial planning, portfolio management, CRM systems—into one cohesive experience, streamlining workflows and boosting productivity.  

Alternatively, they can opt for out-of-the-box solutions, which offer limited customization and restrict how the financial professional can serve their clients. The strength of the firm’s balance sheet will likely determine which path they take. 

Ultimately, wealth management firms must decide how bold they feel about the future and the role they want technology to play in it. This decision will guide how they address the pain points faced by their financial professionals. 

CM: What can we expect from the WealthTech industry over the next three years?  

MA: WealthTech is evolving at a rapid pace, and we’re leading the charge with our Journey to One as we build the platform of the future using best-in-class technologies. Recently, we launched tools like OneHub, Support Center, and the Transition Dashboard, all of which have been well-received by our financial professionals. These tools boost efficiency, enhance the user experience, and provide real-time insights. 

We understand that the industry’s biggest challenge amid the current succession boom is helping financial professionals find the time to grow their practices while deeply serving their clients. This is where technology plays a pivotal role—it creates the capacity to grow and scale. Osaic’s goal is to become the go-to destination for growth-focused financial professionals. We will achieve this by seamlessly combining technology, training, education, and capital solutions into a compelling offering that meets the unique needs of the industry. 

As we look ahead, WealthTech will continue to evolve at an accelerated pace, especially as firms like Osaic invest in their own tech stacks and continually enhance their offerings to create unparallel value for financial professionals.