Digital wealth management company Envestnet announced new technology platforms and an internal automation drive during its first-quarter earnings presentation last week.

The Berwyn, Pa.-based company, which has $5.5 trillion in assets and touts its relationships with more than a dozen of the biggest U.S. banks, will release a solution for wealth advisors next week that uses cloud-based data intelligence to streamline data management and analytics, which Envestnet Chief Executive Bill Crager called the “first of its kind.”

“This offering will bring enterprises’ data together,” Crager told analysts during the earnings call. “It will enrich it with new advanced analytics to help clients grow and to help them scale. We’ll also introduce technology that is specifically designed to help advisors build their businesses.”

The solution will offer a customizable data layout, a “launch pad” for third-party platform access, API-based user onboarding and a recommendation engine, according to the presentation.

“If there is an opportunity that we see in the advisor’s practice, that recommendation will be surfaced to their front page,” Crager said. “It will be bucketed. Accounts that you want to review from an investment standpoint, an insurance standpoint, credit standpoint, trust standpoint, all of those — the advisor will be able to click through.”

While launch of the solution is planned for the company’s Advisor Summit next week, several new technology portals have already been deployed in Q1, including:

• A white labelled client portal released in May that will offer Apple and Android integrations in 2023; and
• An API-based developer portal released in April that provides access to public and restricted developer features and is expected to become a revenue stream in the second half of 2022.

Internal automation

Envestnet highlighted an internal digitization drive as part of the company’s long-term business strategy.

“When we’re talking about modernization, we’re talking about systems that we operate the firm on: our portfolio accounting, our trading systems, a lot of our service infrastructure,” Crager said. “We’re not going to need the same cost to support the technology because of modernization, because of automation that we’re able to create.”

The company’s core code and infrastructure are now cloud-based, Crager said, giving Envestnet the ability to scale its internal system “modernization” with the goal of doubling its $5.5 trillion in assets served to more than $10 trillion in the future.

Revenues for Envestnet reached $321.6 million in Q1, a 17% year-over-year increase. Driving the growth were strong results from asset-based revenues, which reached $202.7 million, a 27% increase YoY, and subscription revenues, which grew 4% YoY to $114.7 million. Other figures touted in the earnings presentation include:

• 17,000 integrated data sources;
• More than 625 fintech partnerships and integrations;
• Relationships with 16 of the largest U.S. banks;
• 17.8 million investor accounts; and
• 31 million paid subscribers.

[stock_market_widget type=”inline” template=”generic” assets=”ENV” markup=”Shares of {name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}.” api=”yf”]

Help shape our agenda for the Bank Automation Summit by applying to join the speaker roster here. Potential speakers will be contacted and confirmed directly by the editorial team, and only qualified submissions will receive a response.

Learn more about Bank Automation Summit Fall 2022.