Betterment, Wealthfront among fintech leaders at White House tech summit

Betterment, Wealthfront among fintech leaders at White House tech summit
Policymakers and regulators eye financial technology and how it is expanding accessibility to more consumers.
JUN 16, 2016
Financial technology executives, including top brass at Betterment, Wealthfront and Paypal, met with government agencies during a private fintech summit at the White House earlier this month. The White House wanted to tap into the minds and workings of the tech companies, as well as financial institutions, trade groups, regulators and policymakers, according to those in attendance. Some of the topics discussed were how to better serve consumers' emerging needs and foster industry innovation while maintaining regulations and managing cybersecurity. "We spent the day identifying those areas where partnership across industries and between the public and private sectors can help advance our financial well-being and economic prosperity," Adrienne Harris, special assistant to the president for economic policy, wrote in a blog post. One of the biggest takeaways was how financial technology innovations are making advice more accessible to consumers. “There have always been ways for the well-off to get access to these types of investing and retirement planning services, but I believe attendees were especially optimistic about how technology is bringing that same access to those that were previously underserved,” Quinten Farmer, co-founder of Even, an app that helps consumers stabilize their income, wrote in an email. Startups in software and websites are automating, and thereby lessening the expenses of, certain financial services. By hosting this event, the White House was able to see where it needed to advocate or push initiatives so that startups, government agencies and others could support financial inclusion. “That's what was top of mind of the White House: That advancements touch everyone and not the few,” said Cherian Abraham, digital payments and commerce executive at Experian. Online automated investment platforms, which often serve individuals otherwise not receiving advice from traditional institutions, have kept on the government's good side. Wealthfront got a shoutout from DOL Secretary Thomas Perez during a congressional hearing last year in which he used the company as an example of a fiduciary. Ali Rosenthal, Wealthfront's vice president of strategic partnerships, participated in the FinTech summit, and is also a member of the Presidential Ambassadors for Global Entrepreneurship. Betterment, as well as Financial Engines and Morningstar's HelloWallet, partnered with the Social Security Administration last year to incorporate monthly Social Security data into clients' RetireGuide plan. “Innovation is making advice and financial management accessible to more people than ever before,” said Jon Stein, chief executive of Betterment. The availability of customer data between firms was another discussion point, according to attendees. As it stands, financial institutions cannot — and in some cases, are not willing to — easily share client data. But having that information in the picture when a person is determining how best to save for retirement or find appropriate loans, for example, allows for more holistic considerations. In order for all parties to feel comfortable with this, though, institutions and third-parties need to ensure data is secured. The Office of the Comptroller of the Currency also is staying mindful of new financial developments. It is hosting a forum next week with banks, financial technology companies and consumer groups to discuss the best ways to support responsible innovation. The OCC was also at the White House summit. "Businesses and consumers expect more from financial institutions, and technology opens the door to products we couldn't have imagined even a decade ago," Comptroller of the Currency Thomas Curry said at an American Banker conference in April.

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.