For advisors who want to offer 401(k)s to their business-owner wealth management clients, Fiserv and Vestwell just made it easier. Fintech giant Fiserv announced Monday that it is integrating robo 401(k) provider Vestwell into its platform, further adding to the digital streamlining of 401(k) services.
The partnership will provide “convenience and low-cost, high-value automation, allowing advisors to open a 401(k) that sits alongside their clients’ other accounts that are managed either directly or through a third-party.”
“Our partnership with Vestwell brings retirement planning and wealth management together, empowering financial advisors while expanding the offerings and enhancing the value they can bring to their clients,” Cheryl Nash, president or Investment Services with Fiserv, said in a statement. “The ability to offer a flexible, turnkey retirement platform provides advisors with a strong touchpoint and benefits peoples’ financial lives by reducing the time to investment and elevating the digital experience.”
Vestwell’s white-labeled solution allows advisors to deliver what the company describes as a “consistent client experience through an open-architecture, multi-custodial, multi-record-keeping platform.”
Advisors have the option to bundle or unbundle their services while also leveraging administrative and fiduciary services as needed to scale their own advisory business.
Asset managers can also benefit from the solution, which enables them to provide mutual fund and ETF strategies that are managed based on risk tolerance or target retirement dates.
As the DOL’s fiduciary rule is implemented, Vestwell helps asset managers align with the new regulations, the company claims.
“Technology is fueling an industry movement towards holistic planning by helping advisors incorporate retirement planning services that extend beyond the reaches of wealth management,” added Aaron Schumm, founder and CEO of Vestwell. “Our partnership with Fiserv will serve to remove the administrative burden that advisors experience when implementing retirement plans, and will provide advisors with the tools they need to best serve their clients.”
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.
