Setting the pace

As the powerhouse of the TAMP market, Envestnet is setting the pace for innovation in the industry as it continues to absorb market share.  

The turnkey asset management provider made a handful of changes to its tech stack over the course of the year that have kept it one step ahead of its competitors, garnering comparisons to some of the top tech giants — like Apple and Google — but in the TAMP space. 

In recent weeks, Envestnet has inked a data-sharing deal with Wells Fargo to exchange customer data with more than 1,400 third-party fintechs, added annuities on its MoneyGuide platform and provided tools that let RIAs set up cash management accounts for clients so they can meet budgeting goals.  

“Envestnet has not lost market share, because despite having a tremendous amount of size, their ability to innovate never stops,” said Alois Pirker of the Aite Group. “They are well aware of their position, but they're not resting on their laurels.” 

no letup

As the largest TAMP by assets, Envestnet has no intention of slowing down as the company shifts its focus to financial wellness rather than investments, said Andrew Stavaridis, its executive managing director. 

“The competition out there that’s coming to market is driving some of that consolidation factor,” Stavaridis said. “What some TAMPs are doing today is coming to market with single point-of-call technology solutions, but what’s happening is advisers don’t want to have to piece all that together themselves.”  

For Envestnet, that means evolving beyond being just a TAMP, Stavaridis said. In that light, Envestnet has tapped into areas like insurance via Envestnet Insurance Exchange and is eyeing fractional shares and other offerings that broaden its scope to accompany a holistic financial wellness offering.

“We have to expand beyond being a gateway to more technology platforms that allow clients and advisers to engage with investments, because today they're engaging in overall financial wellness,” he said.