Apex nabs Jon Patullo from 'Schwabitrade' to 'raise the bar' and make his new firm's RIA system as 'frictionless' as the old one
The loved and admired TD Ameritrade software chief will bring his playbook -- and possibly Schwab's -- to Apex, which continues to try putting a winning front-end on its old Penson backend, a source says
4 min read- Apex hired Jon Patullo from Schwab to enhance its RIA custody technology.
- Patullo's Veo platform expertise aims to make Apex's RIA system 'frictionless'.
- Schwab's TD Ameritrade purchase creates opportunity for Apex to gain market share.
Brooke's Note: Jon Patullo occupies one of the more pivotal positions in the RIA business as the TD Ameritrade Veo open-API guy. Unlike most TD Ameritrade positions, his survived the Schwab merger, perhaps because Veo is so central to what makes TDA different. Now Apex is acquiring him, his RIA relationships, his vendor relationships and his 26 years of institutional knowledge. For Apex which seems so promising, yet slightly out of the RIA mainstream, this looks like a very winning hire.
Apex Fintech Solutions has hired Jon Patullo to lead technology product strategy for its RIA custody unit, Apex Advisor Solutions.
The Dallas company will bring him aboard by year-end along with his knowledge base from TD Ameritrade's (TDA) famed Veo platform.
The API-friendly RIA app store was so innovative it became the center of the Department of Justice (DOJ) antitrust investigation pre-Schwab-TDA merger in 2019 (completed in 2020), See: Despite dissenting Fed vote, Charles Schwab Corp. cleared to close TD merger Tuesday, and 'Schwabitrade' looks less fearsome than anticipated
Apex is one of a number of firms hoping to capitalize on Charles Schwab Corp.'s planned termination of the TD Ameritrade brand by next year.
Perhaps much of the Veo system will go along with it. Veo is an account management and trading platform, designed specifically for advisors. It was provided as a service to independent advisors using TDA's brokerage, execution and custody services.
Critical move
With robo-advisors on the rise, robo custodian Apex is rising with them, a diamond mined from the rubble of the Penson Worldwide debacle
Patullo will have his work cut out from him trying to transfer the TDA magic to Apex to make it user-friendly for RIAs, so it can better compete for the big ones, says Franklin Tsung, a former COO of his father's firm, AppCrown, a CRM software that Veo combined with many other applications.
Patullo will have about a two-year window to raise that bar but he's equipped to move fast because he knows where the landmines are, Tsung adds.
"His quality of knowing the trial and errors should help the custodian find its footing amongst the RIA community; this move is both incredibly interesting and has the makings of a great upstart turned true challenger story and should be followed closely.
"The next 24 months will prove critical, notably with Schwab's completion of the TD Ameritrade purchase."
Accelerating strategy
Apex declined to allow its executives to be interviewed about this hire but may send emailed answers tomorrow to a handful of questions.
Story Timeline
But Olivia Eisinger, general manager of advisory solutions at Apex, said Patullo is certainly being hired to "raise the bar" and "accelerate" and "modernize" on behalf of RIAs.
“Apex is on a mission to help growth oriented advisory firms modernize their businesses and the experience they offer their clients,” said Eisinger.
Despite dissenting Fed vote, Charles Schwab Corp. cleared to close TD merger Tuesday, and 'Schwabitrade' looks less fearsome than anticipated
“We are thrilled to welcome Jon to lead our efforts accelerating our advisory technology strategy.
"Jon has made incredible contributions to the RIA industry, and we are excited about his passion to continue raising the advisory technology bar.”
Apex is challenging itself to create a way for RIAs to lead a paperless and smooth-flowing existence, according to Bill Capuzzi, CEOof Apex Fintech Solutions.
"We ... welcome Jon, an industry pioneer and admired technology innovator, to further enhance our advisory business," he says in a release.
"It is our aim to provide all advisors and their clients a frictionless, digital experience.”
Material wins
Apex gave up its dream of an IPO last December when it split with its SPAC and the fortunes of companies serving crypto-trading were on the wane. See: Apex IPO goes kaput --potentially over crypto, SPAC ties--leaving close to $1 billion hanging and blood in the water for hungry M&A sharks
Apex lost its chief technology officer, Josh Gray, to Riskalyze in August. See: After Riskalyze raised a pile of cash, it went shopping for a chief technology officer and found him at Apex Clearing
In April, Apex gained Marcel Tsai as its senior director, advisory. He also left TD Ameritrade after more than a decade working with Patullo.
Patullo's most recent titles were managing director of digital trading and wealth management for Charles Schwab Corp. and managing director of technology platform management at TD Ameritrade Holding Corp.
"Apex is this unique upstart, acquiring custodian/clearing technologies from Penson with a fully mature back-end infrastructure without a front-end solution," says Tsung. See: Apex is rising with robo-advisors, a diamond mined from the rubble of the Penson Worldwide debacle
"Apex needs to begin thinking of industry-wide partnerships, impactful M&A considerations, and strategic thinking to have material wins."
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