AssetMark sees technology as integral to its success, earmarking $60 million of its current year’s budget to that category as it rolls out new tools and enhancements aimed at younger clients, the CEO of the company said.

The firm took in more than $708 million in total revenue last year, almost 15% more from the year before, according to AssetMark’s earnings report released last month. Its adjusted EBITDA for 2023 was about $250 million, which was up more than 24% from 2022, and its adjusted EBITDA margin for 2023 was more than 35%, which is up 290 basis points from 2022, the report said.

The Concord, Calif.-based firm attributes part of that success to its dedication to technology. In an interview, Michael Kim, CEO of AssetMark, said he recognizes the importance of technology, particularly to up-and-coming advisors.

“As we work with the younger generation or the next generation of advisors, they’re actually looking at technology and really using technology to play offense with their clients and with developing their own business,” he said. “The advisor sees technology and digital solutions as a way to drive client experience.”

AssetMark's tools have  to be innovative if it wants to stay ahead of its competition, he said.

“We know that technology is kind of like an arms race, so we need to continue to invest in the digital technology platform,” he said.

The company says its $60 million technology budget is a significant increase over last year, although company officials declined to reveal that exact increase.  

As part of its tech push, the firm announced last week the launch of the Advisor Dashboard, which is the new homepage for E-Wealth Manager, the firm’s advisor platform. The dashboard provides relevant information to advisors who own their own firm, including assets under management, revenue, revenue per advisor, KPIs, the company said.

“This Advisor Dashboard allows the advisor to have a full view of all the key metrics that a CEO would have in running their own business,” Kim said. “It’s meeting clients where they are depending on their role.”

Also, this year, the firm says it will introduce enhancements to its Portfolio Engine, a portfolio comparison tool that advisors can use to compare their portfolios with AssetMark’s solutions.

“It really illustrates the value [an advisor] can bring leveraging the AssetMark technology and the AssetMark investment strategy,” Kim said. 

Portfolio Engine has been out for several years, but the upcoming enhancements are a way to keep it fresh and relevant for an industry thirsty for innovations.

"We help advisors really construct what we believe is the best portfolio for their clients,” Kim said. “At the end of the day, it’s about making sure that the end-client has the best solutions to help meet their financial goals so that it is a long-term relationship.” 

Late last year, AssetMark introduced its Investor Mobile app, which gives investors access to their accounts through their smartphones, including data on market value, performance, gains and losses, and holdings. The app has been downloaded 6,500 times, Kim said.

Advisors can also use the app to view a list of their clients and their investments.