Pete Dorsey, a former LPL Financial, Altruist and TD Ameritrade executive, has teamed up with two partners to launch Wing Financial, a registered investment advisor and digital financial planning application.
The technology will initially be distributed through financial advisors, banks and retirement providers, but they plan to take it direct-to-consumers next year.
“After 30 years in corporate America, I decided that if I’m going to grind for the last chapter of my life, I prefer to do it for myself,” Dorsey said in an interview with WealthManagement.com.
Dorsey co-founded the tech startup alongside Sean Wing, the former CEO of August, a platform for artists, and John Sharpe, who has a background in commercial real estate. The three, along with 11 engineers, have been “bootstrapping” the platform, which now has a couple thousand users. They’re using Apex Fintech Solutions for custody.
Wing has raised some money already from a handful of RIAs and James Vincent, an advertising executive who was responsible for some of Apple’s biggest campaigns. Dorsey declined to say how much has been raised in seed funding.
Wing is a client-led system in which an artificial intelligence engine asks them a series of questions that an advisor would ask. It can capture up to 300 data points. Clients then create a “micro plan,” or a goal they want to accomplish, like saving for retirement, taking a vacation to Thailand or getting a pet. The technology then provides guidance based on the data collected and the client’s plan.
“You create your own path rather than, and truthfully, I’ve done this with an advisor, and it’s awful,” Dorsey said. “In the traditional status quo model, you get a 65-page document that you probably never look at and never gets updated.”
The system will also recommend a portfolio, but unlike some robo advisors, these come from the advisor via whatever models they are running.
“And with those 300 different data points, I would say that the financial advice one size fits all is over,” Dorsey said. “This is being replaced by deeply personalized guidance that is essentially rooted in every stage of a client’s life, from risk tolerance to your liquidity, your aspirations, your evolving circumstances. The future of this business in my mind is going to be deep personalization at scale. And the question that advisors need to be asking themselves is, how can you use the AI-driven insights to enable your firm to truly understand each client’s very unique values and behaviors and financial goals?”
Dorsey added that for many advisors, the bottom 20-30% of their book is under a one-size-fits-all model, and they’re probably losing money on those clients.
Wing is meant to provide that financial advice and guidance to the 150 million households in America that don’t have the net worth to qualify for a wealth advisor’s minimums, he added. At the same time, it provides advisors with a different engagement model for those clients, lowering costs and creating capacity. It also allows them to incubate those clients so that when they do have money, advisors can capture it.
The startup has a traditional SaaS-based model, where there’s a per-household license that starts at $240 a year ($20 a month) and then scales down depending on how many licenses the advisor holds. At the moment, the advisors are picking up the cost of the technology.
Once they take the platform direct to consumers, there will be a referral mechanism to financial advisors.
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