The All-in-One Platform Built for Modern Advisors with Michael Scaplen

I've been good. You?

[00:00:24] Michael Scaplen: Staying busy. We got a lot of, a lot of work that we're building through here at Axos, so love to sit down and kind of walk and talk through some of that.

[00:00:31] Doug Heikkinen: Yeah. Let's start with some history. Axos Clearing has such a history spanning a hundred years. How has the company's evolution from Kirkpatrick Pettis to Axos Clearing shaped its current identity and operations?

[00:00:46] Michael Scaplen: Yeah, that's right. And a lot of people don't know that we have been in business for over a hundred years, with the legacy firms and various iterations, going up into Axos. So our legacy gives us a unique perspective in the clearing space from our early days as Kirkpatrick Pettis. To the evolution through COR Clearing, where you and I first engaged, and then Axos, now Axos clearing.

So we've consistently adapted to meet the needs of an evolving industry. Today we're proud to combine that institutional experience and that deep history with a tech first mindset. So it's all backed by the strength and the financial power of Axos Financial. And, our current identity is rooted in that blend to create Axos Complete.

So that's what we're going to talk about a little bit today, is Axos Complete, the new ecosystem and ethos of Axos, and it's going to be the evolution of wealth management. Integrated ecosystem, cutting edge technology, that's going to integrate more than just clearing, but it'll bring in banking solutions and third party integrations via API and, it's all rounded out with a leading support team, to really power your business, from end to end.

[00:01:54] Doug Heikkinen: Not too long ago you acquired COR Clearing and rebranded it as Axos Clearing. What were the strategic goals behind this acquisition and, how has it impacted your current business model?

[00:02:09] Michael Scaplen: Doug, the, acquisition of COR Clearing was more about transformation, not just a name change.

Axos had seen the opportunity to modernize the clearing experience by embedding it with a digital first banking ecosystem. So since the acquisition, we've retooled operations, we've modernized the infrastructure, we've launched new solutions like Axos Complete. It's allowed us to better serve a broader set of clients.

More than just the traditional broker dealers, but also hybrids and RIAs and offers greater efficiency and flexibility.

[00:02:42] Doug Heikkinen: So Axos Complete is new to me, and it's described as an integrated ecosystem for wealth management. And I remember you guys working on that. Can you elaborate how this simplifies, innovates and empowers both advisors and clients?

[00:02:55] Michael Scaplen: Yeah, so Axos Complete is more than just a catchphrase or a buzzword. Axos Complete is the ethos of what we're building, and again, it encompasses everything. So not just technology, but it's our people too. It's about our service models. So, Axos Complete is designed to eliminate the friction between banking, investing, and planning by integrating technology and financial solutions along with service into this digital first experience.

So what it's going to do is it's going to empower the broker dealers, the advisors and their clients with a comprehensive suite of tools that's going to streamline that front, middle, and back office operations. So, in leading with that technology, the first part that we introduce in Axos Complete, is the Professional Workstation.

So the Axos Professional Workstation is going to be that platform where advisors and clients access a unified interface that's going to connect checking, savings, mortgages, investments, and performance reporting, all in real time. So it's going to simplify that back office operations. It's going to reduce the vendor sprawl. It's going to help advisors deliver more value with less administrative lift.

Also in that technology side of Axos Complete is the client portal, which is the customer facing tool, an integrated investor portal where clients can manage their investments and banking solutions, including managed accounts, retirement planning, and Axos Elite banking services. So this is going to be that fully connected experience that will truly modernize the financial experience for the end investor.

[00:04:27] Doug Heikkinen: Let's spend a little more time on the client portal. It seems like it offers real time integration and tailored financial management tools. How does this enhance the client advisor collaboration and overall user experience?

[00:04:41] Michael Scaplen: Yeah, that's, that is a great question, Doug, because again, the client portal is going to be that interface.

So we've made the portal more intuitive. It's very customizable and it is deeply integrated across all of our Axos platforms. So clients will see their complete financial picture from investments to banking, and advisors can use that data to proactively provide guidance to their customers.

So it's going to move the relationship from reactive to real time. And plus clients can interact with their accounts using modern tools that they're used to. So it's a mobile first access. It's got alerts, personalized dashboards, all of which is built to really deepen that trust and engagement of the end client.

[00:05:24] Doug Heikkinen: Looking through this, to me, the features were account aggregation, tax reporting, and a biometric login, which you're going to have to explain to me how does Axos Clearing stay ahead in technology innovation within the clearing industry?

[00:05:40] Michael Scaplen: Yeah. And again, that's, that was part of the acquisition of COR Clearing, right? We, Axos Financial, is a tech native bank. It is an online digital bank. We don't have brick and mortar. You don't go into an access location. But what that does is it allows us to really focus on the technology. So we're bringing that mindset, that tech native, that tech forward infrastructure.

And we're not retrofitting legacy systems here. We built a more technically advanced system, and we're bringing that into clearing and really setting up a digital foundation. So it allows us to move faster. We can integrate smarter, we can deliver better features like the biometric login, right?

So that's similar when you have your iPad and your facial recognition or your fingertips. Some of the biometric stuff can be integrated in there, which allows for easier account opening or automated features that'll be unlocked through that biometric stuff. So, the innovation isn't just a buzzword for us.

Again, we're tech forward. Digitally native. It's about creating the tools that make life easier and more secure.

[00:06:51] Doug Heikkinen: Let's talk about the professional workstation roadmap, which includes AI tools and expanded integrations. What are some of the insights, your insights into how these upcoming functionalities will transform advisor workflows?

[00:07:05] Michael Scaplen: Yeah, so, as you know AI is a big part of what we're seeing in and across the landscape. So, advisors these days are inundated with data, but what do they do with that? How do they get to that and how do they really transact with that data? So our goal is to turn that into actionable items. And AI can help do that and slice through those large troughs of data that the advisors are reviewing. So AI is going to help service opportunities, it's going to highlight risks, it's going to create personalized action plans and enhance the client experience. So, imagine an advisor logs in and he goes through his biometric login and he gets to his account, right?

So it's safe, it's easy to get to. It's working in a tech stack that they know. And they're immediately seeing which client's needs attention. Whose birthdays are coming up, or action items or pending items that they can interact with. Maybe there's portfolio updates that might be relevant for an account.

So they're going in there utilizing AI to comb through large stacks of data and really make a real time assessment, and an action item. So, coupled with third party integrations, it's about making this workstation a mission control hub that's going to save time and enhance outcomes.

[00:08:31] Doug Heikkinen: We're at the Envestnet conference and Axos Clearing is now providing portfolio management solutions empowered by Envestnet, which includes separately managed accounts and fund strategist portfolios.

How do these offerings cater to the diverse investor needs?

[00:08:47] Michael Scaplen: Yeah, so as Envestnet is woven into the infrastructure of the markets, right? There's a lot of firms that utilize it and its tech stack. So, for us, flexibility was key. So whether an advisor is working with a high net worth family or mass affluent investor, we want to give them the tools to tailor their portfolios accordingly.

So we're going to roll out the access managed account solutions and that's right, and we'll be powered by Envestnet. And with that, we're going to access a wide array of strategists, models and SMAs, with tax aware and goals based options, right? It's going to allow these advisors to scale their practices while providing a deeply personalized experience and how they're serving each client.

[00:09:27] Doug Heikkinen: This is a really powerful platform. You have tax overlay services, private wealth consulting, how are these services helping advisor deliver personalized value to high net worth clients?

[00:09:40] Michael Scaplen: Yeah, it's, Envestnet is a fantastic platform. It is again, very robust and has some of these features that these high net worth clients demand, right?

They want more than that cookie cutter portfolio. They want that experience, and they want to know that their advisor truly understands their needs of a high net worth client. So they expect a strategy that considers taxes and legacy items and lifestyle, right? So the tax overlay solutions are going to allow advisors to harvest losses or defer gains, and tailor holdings to the account level. And meanwhile, our private wealth consulting arm can offer deeper guidance on estate planning and business succession and philanthropic strategies. So it's about helping advisors be more than just portfolio managers. They become life advisors.

[00:10:31] Doug Heikkinen: So another thing that caught my eye was Axos Elite Banking, which integrates banking solutions with wealth management strategies.

How does this bundled offering strengthen advisor client relationships and boost revenue streams for broker dealers?

[00:10:45] Michael Scaplen: Yeah, so again, it's about integration and delivering a holistic experience across multiple platforms, and multiple tool sets. So when an advisor can offer an FDIC sweep, insured high yield account, or mortgages, or lending solutions, alongside of investments, they become more central to the client's lives.

So Axis Elite banking turns banking into a value prop, not a distraction, for broker dealers, right? It creates new revenue streams through deposit sharing and mortgage referrals, all while helping them retain assets and deepen those client relationships.

[00:11:23] Doug Heikkinen: So revenue sharing through Axos Elite Banking, which is a unique value proposition for broker dealers. Discuss its impact on fostering long-term partnerships with advisors.

[00:11:34] Michael Scaplen: Yeah, so revenue sharing changes the dynamic, right? It offers an opportunity for the broker dealer to be part of another revenue stream. So, instead of firms watching deposits and lending walk out the door to retail banks, they're able to capture that opportunity and bring them in.

It also gives advisors a tangible reason to consolidate client relationships. The economics become better, the retention is stronger. Most importantly, the client wins because they have a more connected financial experience. So it's a, win-win that turns old clearing models on its head, for sure.

[00:12:10] Doug Heikkinen: You've been busy guys.

[00:12:12] Michael Scaplen: Yeah, we're, again we're building the future of clearing and we truly believe that. So we've taken that digital package that the bank has, that foundation, and we've built on top of that. And again, we're, we are fully thinking about what the future brings and we want to be pioneers of it.

[00:12:29] Doug Heikkinen: So let's go. What's next? Last one.

[00:12:32] Michael Scaplen: Yeah. So again, it keeps coming back to, we're building the future of clearing and we really believe that. Axos Complete is that package that will light up end-to-end solutions from not just technology, but it's about service. So, Axos Complete, again, is very much focused, not just on the tech, but on the service models that we're providing.

So, we want to offer one that's integrated, intuitive, and advisor first. And again, whether working through AI driven workflows or real time banking connectivity or next gen advisor tools, we're focusing on making every interaction smarter and more seamless. So the goal isn't just to keep up. We want to redefine how advisors access the markets and how their clients should expect to be treated from their financial partners. So, we're built to lead that change.

[00:13:24] Doug Heikkinen: Michael, always great to spend time with you. You're a wealth of information.

[00:13:28] Michael Scaplen: Thank you so much. always a pleasure.

[00:13:30] Doug Heikkinen: For more information on Axos, please visit Axos.com and start there.

Please visit us on X, LinkedIn and Facebook all @Advisorpedia. For everybody at Advisorpedia, our producer Tory Miller and the Power Your Advice podcast team, this is Doug Heikkinen.