Vestwell announced a partnership on Wednesday with Envestnet to give advisors who use its platform access to Envestnet’s 3(38) investment management services. Envestnet will provide plan-level fiduciary services, while Vestwell manages recordkeeping and plan administration. Vestwell noted that “over time, the relationship will expand to include other Envestnet offerings.”
“As we strive towards closing the retirement-savings gap, our efforts are hyper-focused on how we can help financial advisors more efficiently serve their clients,” Vestwell CEO Aaron Schumm, said in a statement. “We are thrilled to be partnering with Envestnet, which shares our mission to empower advisors to succeed through innovative technology. We look forward to continuing to broaden our partnership with Envestnet to offer advisors an expanded suite of retirement services.”
Technology is a sore subject for many advisors. A November survey by Vestwell found three-quarters of retirement advisors believe recordkeeping technology is outdated, and half say user experience is their biggest challenge. Nearly half were frustrated by their technology provider’s lack of integrations.
Khash Sarrafi, senior vice president of Retirement Solutions at Envestnet, acknowledged the role technology plays in building a scalable practice, and freeing advisors to focus on outcomes for their clients and participants.
“At Envestnet, we are dedicated to partnering with industry leaders like Vestwell to further the evolution of the art of recordkeeping for retirement plans, and to help advisors improve outcomes for plan participants,” Sarrafi said in a statement. “Our fiduciary 3(38) capabilities, powered by Envestnet | PMC, combined with Vestwell’s transformative recordkeeping platform, will provide more advisors with the support they deserve to effectively and efficiently sell into, and service, small and medium-sized businesses. This is the latest step forward in our ongoing commitment to expand the essential advice which helps clients achieve financial wellness—and lays the groundwork for scalable practice growth.”
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