What You Need to Know
- The firm intends to roll out new tools for advisors connected to the vision in the next few months.
- An app for consumers should be available by year-end.
- Separately, its MoneyGuide unit is now sharing its financial planning algorithms with any personal finance based digital offering.
Envestnet is building a new “personal financial ecosystem” that aims to educate consumers and help them better connect with financial professionals — while also improving the user experience and data-sharing capacity of both advisors and consumers.
“The digital engagement model is not very fulfilling in financial services today,” said Envestnet CEO Bill Crager in an interview with ThinkAdvisor Friday, ahead of the Monday release of his white paper “The Intelligent Financial Life.”
The new Envestnet tools, which should be available for advisors over the next few months and consumers by year-end, are designed to serve as advisors’ “superpower to help them bring together the individual’s or family’s financial picture,” Crager explained.
The consumer app is “like a rope that gets thrown out on the front of the boat that helps people understand finance and then begin to find the financial advisor who’s on the other end of” that rope, he said.
Dani Fava, head of strategic development at Envestnet, used another analogy to describe the firm’s plans in a tweet on Friday: ”Envestnet is transforming the way advice is delivered. The caterpillar becomes the butterfly. Check back Monday for take-off!”
Separately Monday, Envestnet’s MoneyGuide launched MoneyGuideEngine, a collection of its financial planning algorithms now used by advisors, for any personal finance-based digital offerings.
“Essentially, we are now enabling firms to integrate our tried and tested ‘calculation brain,’ or the central API engine that makes Envestnet | MoneyGuide tick, within their own planning software offerings and products,” said Tony Leal, president of MoneyGuide, in a statement.
“This means firms and advisors can own the fun part of creating the client planning experience, and they can rely on our award-winning APIs for the boring, yet essential, math and algorithms that connect the dots of the financial plan.”