Capitalize Launches 401(k) Rollover Solution for Advisors
Capitalize is launching a new platform that would help financial advisors and wealth management firms streamline the rollover process.
The 401(k)-technology provider debuted its Capitalize for Advisors rollover solution on Tuesday, intended to help advisors and wealth management firms locate held-away accounts and initiate rollovers on behalf of clients. Other services include offering a team of rollover concierges and allowing advisors to monitor rollover transactions and next steps through the Capitalize dashboard.
All of these services could reduce the time spent on rollovers by 90%, Capitalize projects.
The platform will also leverage Capitalize’s Embedded Rollover API solution, which already powers rollovers for large financial institutions, online brokers, digital wealth managers, and recordkeepers, the firm states.
Capitalize notes that while 401(k) rollovers represent some of the largest growth opportunities for advisors, the process remains slow and tedious for many. Currently, over $1 trillion in 401(k) assets are rolled over each year, and close to $2.1 trillion remain behind in employer-sponsored accounts. Further, a new survey by Capitalize shows that among 966 U.S. financial advisors, nearly two-thirds describe rollovers as both a “critical source of assets” and “one of their top operational challenges” that includes hours of administrative work. The time spent on rollovers could take time away from growth opportunities, Capitalize reports.
Even though close to 50% of advisors say they’ve set minimum balance thresholds to help clients consolidate their accounts, eligible accounts are often left behind because of the complex process.
“Rollovers are one of the biggest growth opportunities for advisors, but the process today is slow, manual, and frustrating for both advisors and their clients,” said Gaurav Sharma, CEO and Co-Founder of Capitalize. “We built the Capitalize for Advisors platform to modernize rollovers end-to-end, helping advisors capture more assets while delivering a dramatically better advisor and client experience.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.