Recordkeeping Tech Needs an Overhaul: Study

Three-quarters of retirement advisors believe recordkeeping technology is outdated and needs an overhaul, according to a survey released Monday by Vestwell. Over half said user experience was their biggest challenge using recordkeeper technology. Forty-eight percent cited lack of integrations and 45% said high fees were the biggest tech challenges they faced with their current providers.

Vestwell conducted the survey in August among 434 advisors who sell retirement plans and 164 plan sponsors on the company’s platform.


2020 is Just Like Every Other Year, Said No One Ever: How advisors can help plan sponsors think about year-end preparations for their 401k retirement plans

While saying goodbye to 2020 might be a welcomed event for many, year-end brings with it a number of responsibilities, especially for corporate retirement plan sponsors.

This year is particularly noteworthy, as the 2020 year-end cycle will require additional scrutiny and there are a number of changes coming in 2021 that will require added preparation. The best thing a plansponsor can always be is prepared, so in order for 401k advisors to help them usher in a Happy New Year, consider these three important factors…


How Advisors Ease Non-Revenue-Generating Pain Points: Excel 401(k) 2020 Digital Series

While workplace retirement plans are the only source of invested assets for the majority of Americans, most plans are still delivered on recordkeeping technology built before the Internet even existed.

It makes efficiency and scale near impossible, a recent session at the Excel 401(k) 2020 Digital Series noted, especially in certain market segments.

3 Questions With Aaron Schumm Of Vestwell

By Financial Advisor Magazine

Aaron Schumm, who has spent almost two decades in the fintech and wealth space, is CEO of Vestwell, a digital recordkeeping platform for 401(k) and 403(b) plans.

How did you personally become involved in fintech?

There’s a long and short version of this story, so I’ll leave you with the cliff notes. But essentially, I knew at a very young age that I was going to go into finance. My dad is a retired carpenter, but he always had an affinity for the markets, so we started talking shop early. That set my course in undergrad to go into finance.

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Vestwell Brings All-ETF Target-Date Strategies To The 401(k) Market

By Christopher Robbins, Financial Advisor Magazine

New York-based Vestwell, a digital retirement plan recordkeeper, announced the launch of a service offering all-ETF target-date portfolios for the small plan market.

ETFVest, which Vestwell announced on Thursday, combines 3(38) investment management fiduciary lineup services from LeafHouse Financial, which already acts as a plan fiduciary for private and public retirement plans around the U.S., with an all-ETF target-date portfolio model from Stadion, which specializes in offering customized investment options to the retirement plan market, using Vestwell’s API-driven recordkeeping solution.

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U.S. News: Q&A With Vestwell

By Coryanne Hicks, U.S. News & World Report

U.S. RETIREMENT AND pension plans are nearly a $670 billion market with an average annual growth rate in the last five years of 6%, according to IBISWorld. It’s an enticing market, but one registered investment advisors, RIAs, have often shied away from out of fear of the archaic technology traditionally used to run it.

In addition to being one of the largest finance and insurance industries in the U.S., the retirement plan industry is also one of the oldest. This means a lot of the industry’s operations were put in place well before the dawn of the internet. In some respects, the industry has been slow to adapt.

It’s time to change that, according to digital retirement plan provider Vestwell. The company says it’s time the 21st century comes to the retirement plan industry, starting with a modernized, digital platform that allows advisors to more efficiently sell, manage and scale their retirement business.

Read interview excerpts from the conversation with Vestwell’s founder and CEO, Aaron Schumm, on how his company is digitizing the retirement planning industry.

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Four years into startup, Vestwell makes its big move — nixing FIS’s recordkeeping for the 401(k) super-bot it built with Goldman Sachs’ VC money

By Lisa Shidler, RIABiz

After four years in business, Vestwell is gearing up to become a turnkey 401(k) program on behalf of RIAs — a software change that could be like swapping a Model T for a Tesla — with some heated industry debate about whether that really makes a competitive difference.

The New York-based startup that Aaron Schumm founded in 2016 plans to deliver more “digital” data that helps RIAs — most of whom currently specialize in 401(k) or non-401(k) assets — create an investor experience that unifies those spheres.

The goal of Vestwell’s data harmonization is to get more retail RIAs to tackle plan sponsors and plan participants.

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