Betterment Wealth Management Receives Platform from Fidelity

Published By : 16 Oct 2014 | Published By : QYRESEARCH

As the competition to popularize investment applications intensifies in the global market, industry best tech-savvy wealth management start-up firm has won the commendation of fund manager Fidelity. 

Fidelity offers Betterment platform to around 3,000 financial advisers to whom they can offer simple web tools and financial apps to various clients. This platform is for those advisers who can use institutional wealth services division to increase the key attractiveness for younger savers. 

Betterment – one of the number one start-up firms is experimenting new technological investments to gain more market shares and encourage savings from sedated investment businesses. The firm has tripled its assets under management to $875m this year. 

Betterment website and app allows customers to choose their financial goals and register their money straight to the portfolio of exchange traded funds. 

Jon Stein, chief executive and founder of the New York-based company said there are plenty of firms on the market that provide bits of this technology to financial advisers but there are not many great deals or end-to-end solution. 

However, the Betterment Institutional website and app interface is quite user-friendly allowing financial advisers to monitor their accounts, sign up clients, maximize tax-efficiency, and make investments.   

Fidelity Institutional Wealth Services offers reliable back-office systems for consulting services and investment advisers. They are the custody arm of the fund management community. Many of the members in this group run small teams or are self-employed. Nevertheless, Fidelity serves a dozen strategic partners who are in the position to offer human resources services, marketing, and banking services to financial advisers. 

Fidelity’s deal with Betterment is a latest illustration to understanding the encroachment methods of starting up financial start-ups of investment and banking.  

Earlier this year, Betterment has had Citigroup’s venture capital arm along with partners like Northwestern Mutual Capital and Globespan Capital Partners joined in as investors for a $32m funding round. This new funding also includes existing investors such as, Menlo Ventures, Bessemer Venture Partners, and Anthemis Group. 

This expansion of Betterment is to offer a launching platform to clients and brokers, including Morgan Stanley’s 3D or Bank of America’s Merrill Edge. In addition, traditional financial services companies are forming partnerships with tech-orientated companies. While large companies are still entering the financial services industry, various other start-ups have already attracted brokers such as Future Advisor and Personal Capital.
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