Blucora, formerly known as the Infospace search-engine provider, has reinvented itself as a “technology-enabled financial solutions” provider after buying the tax software firm TaxAct in 2012, dumping its legacy internet businesses and relocating to HD Vest’s base of Irving, Texas.
John Clendening, the former head of the retail business at Charles Schwab, has run Blucora since April 2016.
“We have a bit of a start-up mentality with Blucora,” Oros says, with potentially big synergies between its two units, HD Vest and TaxAct.
Last year, Blucora rolled out a robo-advisor service called BlueVest, targeted at TaxAct clients. It is a joint effort between TaxAct and HD Vest. BlueVest lets the 4 million TaxAct users open and fund an IRA or investment account right from the tax software, Oros said, and offers an option to connect with an HD Vest advisor.
As HD Vest gains access to a broader set of new clients, the firm is becoming more selective in the advisors it recruits, Oros says.
“In our history, we really focused on getting as many advisors here as we can,” he says. “Now we’ve taken on a more selective process, by looking for engaged, committed advisors” who are serious about building an investment clientele.
Working with tax professionals is a double-edge sword, Oros admits: They have a base of trusted clients, but they don’t really need to get into the investment business.
“Most are making a living in another way, so it’s easy to not get as engaged as you need to,” Oros says.
Still, a growing number of accountants recognize they can build a deeper relationship with clients by offering investment advice, he says. “We want to shine a light on those.”