Colossus and contemporary collide to tackle the state-run retirement plan space.
On Wednesday, digital disruptor Vestwell announced a strategic relationship with BNY Mellon, the nation’s oldest bank and world’s largest custodian.
Together, the firms will offer 401k, 403b, and employer-sponsored IRA plans to BNY Mellon clients, accessible via Vestwell’s turnkey digital interface.
Through the collaboration, Vestwell will be “tightly embedded” in an open-architecture construct and offered to BNY Mellon clients nationwide.
Jointly, they claim the platform “will allow companies to bring modern solutions to state-sponsored retirement programs as well as advisor-led 401k, 403b and IRA programs.
“We couldn’t be more excited about working with one of the most respected financial institutions in the world to power state-led IRA savings programs as well as larger company-sponsored retirement programs,” Aaron Schumm, founder and CEO of Vestwell, said in a statement. “With BNY Mellon’s industry leadership and Vestwell’s digital solution, we’re working to ensure that all employees have practical investment vehicles in place.”
BNY Mellon’s wholly-owned entities—which include BNY Mellon Custody, Pershing brokerage services, Lockwood asset management, and Sumday—will be able to utilize Vestwell’s retirement plan platform.
The integrated offering will provide advisors “a more comprehensive viewpoint into their plan sponsor companies and their employees’ retirement accounts.”
“This collaboration with Vestwell cements our commitment to reshaping retirement account solutions for advisors, trust officers, companies, and employees alike,” added Doug Magnolia, managing director with BNY Mellon Asset Servicing. “We’re proud to deploy such a powerful, tech-driven offering that will impact businesses nationwide and, more importantly, help set their employees up for success.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
