Vestwell eliminates the barriers that currently surround recordkeeping, bringing new efficiency to the $30 trillion retirement industry

NEW YORK, NY, February 27, 2020 – Vestwell, the advisor-friendly digital retirement platform, has announced the next evolution of their platform, resetting the bar across the retirement plan industry. Before Vestwell, 401(k) plan providers were beholden to thirty-year-old technology to oversee complex recordkeeping. Vestwell has reimagined the process by developing a modern tech stack that powers all aspects of retirement plans, without the need for recordkeeping in a traditional sense. The result is a more efficient, flexible, secure, and cost-effective way of offering 401(k) and 403(b) plans.

“Since inception, Vestwell has been about enabling anyone to offer and run a 401(k) or 403(b) program regardless of size and complexity and without the friction that comes with managing a plan. We have now been able to take that to the next level, flattening “the stack” and removing the need to “run recordkeeping” software in the traditional sense,” said Aaron Schumm, Founder and CEO of Vestwell. “We’ve now put the architecture in place to bring employees’ retirement plans account closer to the way they manage all of their other financial accounts.”

Historically, legacy recordkeeping technology and lengthy, redundant processing have resulted in a market hindered by high-costs, inefficiencies, and razor-thin operating margins that left half of the businesses in our country and their employees unserved. Employers in the small-to-midsize market have been left with three unfavorable options: provide a generic plan, pay high fees, or not offer a plan at all.

Vestwell has changed the game by developing a front-to-back, API-driven workplace investing architecture that modernizes the retirement industry. Vestwell is providing the infrastructure to handle a real-time, flexible company plan design with custom investment management options, in a fully white-labeled construct. Vestwell’s technology-driven construct innovates the following
features and services:

• Recordkeeping - Company and employee records are now fully centralized and maintained in-house on a modern tech stack that allows for full plan design and investment flexibility while eliminating reliance on legacy tech solutions. The solution can power financial services companies, payroll companies, and third party administrators alike – all fully white-labeled.
• 3(16) Administration - Vestwell can also step in as a full 3(16) plan administrator, maintaining employee eligibility, loans and distributions, notices, and compliance testing on behalf of the plan sponsor – thus halving processing time and enabling faster issue spotting and resolution.
• Custody - As part of a partnership with a modern, API-driven custodian, Vestwell has created an infrastructure that revolutionizes the cash movement and investing capabilities of individuals in and out of a workplace offering. Each next best dollar for an employee can be managed in the most appropriate way possible, under one seamless architecture.

Vestwell’s platform will become the new norm across the retirement industry, bringing the worlds of the workplace and individual financial investing together. Furthermore, it enables advisors, payroll companies, and enterprise partners to focus on their most core competencies: providing value, while bringing their clients and relationships closer.

About Vestwell Holdings, Inc.

Vestwell is a digital platform that makes it easier to offer and administer retirement plans. Vestwell removes traditional friction points through flexible investment strategies, fiduciary oversight, and streamlined administration, all at competitive pricing. By acting as a single point of contact, Vestwell has modernized the retirement offering while keeping the advisor’s, employer’s, and plan participant’s best interests in mind. Learn more at Vestwell.com and on Twitter @Vestwell.