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How Three FinTech Startups Are Disrupting Retirement Planning, Blending Human And Tech

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FinTech Startups

FinTech Startups-The past decade saw the emergence of a number of digital investing solutions, such as Robinhood, Wealthfront, Betterment, Acorns, and a slew of others, all aiming to democratize access to investment products through low-cost, digital-only solutions. These FinTechs offer easy onboarding processes, low minimum investment requirements, lower fees, and user-friendly interfaces.

However, the next phase of wealth management disruption is taking a different approach. Three new FinTech innovators are taking the best of what new technology has to offer but building it, hybrid style, into exciting new solutions that offer the best of both worlds – Ellevest, Harness Wealth, and Facet Wealth.

This phenomenon mirrors what we saw starting in 2012 with retail eCommerce darlings like Bonobos (my former employer), Warby Parker, and Allbirds, who all eventually opened physical stores or showrooms to combine the best of online and offline shopping. While these three FinTechs might not be opening physical locations any time soon, they are moving away from exclusively robo-based services.

Tackling The Gender Investing Gap

Ellevest is a full-service robo-advisor aimed at female investors, with a focus on how different incomes, lifetime earnings, events and lifespans add up to the need for a discrete investment approach to help women meet their life and financial goals. It was co-founded by Sallie Krawcheck, who held numerous senior roles in Wall Street including serving as the president of Global Wealth and Investment Management at Bank of America, and Charlie Kroll, former founder and CEO of Andera.

Clients get a customized investment plan with simulations that show how decisions made in some areas may affect goals elsewhere, for example, how their risk approach now might impact college fees or retirement in years to come.

Ellevest automatically adjusts asset allocation in line with agreed timelines and while customers can adjust their own exposure, where they veer too far, their investments are rebalanced for free. But while it’s robo-based, there’s still a human element. Ellevest Premium includes unlimited access to advice from Certified Financial Planners and even adds career coaching services.

Leveraging The Best Of Technology And Human Advisers

New York-based Harness Wealth, founded by former Compass CFO/COO David Snider and former Nutmeg CMO, Katie Prentke English, is one firm that tackles this hybridization of human advice and technological innovation head on. Their approach blends top advisers with sophisticated technology to help clients identify financial opportunities and when appropriate pairs them with the right adviser as determined by their sophisticated algorithm.

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Article Credit: Forbes

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