“We are striving to empower intelligent, connected financial lives, creating a holistic view for investments, banking or savings account balances. Advisors’ clients expect smart and efficient digital solutions, and automated, goals-based savings tools can help them create better financial habits while on the path to financial wellness,” Stuart DePina, president of Envestnet, said in a press release on Thursday (April 8).
DePina added that the acquisition of Harvest brings Envestnet closer to its goal, and “optimizes our API-based financial wellness ecosystem.” He said that the tie-up also solidifies Envestnet’s place in enabling embedded finance, something the company sees as “a key driver of the future of financial services.”
A Silicon Valley startup founded in 2014, Harvest Savings & Wealth Technologies complements Envestnet’s platform with automated saving and wealth tools for banks, credit unions, trust companies and other financial institutions (FIs). Harvest taps algorithms to help facilitate customers’ savings goals, while also enabling FIs to hold onto their deposits.
“At Harvest, we believe that every wealth account starts as a savings account,” said Drew Sievers, CEO of Harvest Savings & Wealth Technologies. He added that the company shares Envestnet’s philosophy of helping clients streamline their customers’ financial journeys. Harvest uses technology that automates micro-savings and sends appropriate data to the FI so it can alert people when it’s time to transition from a savings solution to a wealth offering.
“The right financial advice and investment strategies can make a great difference for one’s financial future. However, the path to financial wellness begins with saving,” said Dani Fava, head of strategic development at Envestnet. “It is no secret that the U.S. has a savings problem, as a recent Bankrate survey found that fewer than four in 10 Americans had enough savings to cover the cost for even a four-figure car repair bill. Through this acquisition, our technology can now help reverse the tide, while enabling banks and credit unions to evolve and keep pace with the ongoing FinTech disruption in the industry as we incubate tomorrow’s advisory clients,” he added.
The pandemic and the associated government relief funds have actually triggered a savings bonanza, with more Americans than ever tucking money away for a rainy day. The level of savings is at its highest point in 40 years.
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