Envestnet Yodlee to launch client data analytics tool for advisers

Turnkey asset management platform and adviser technology giant Envestnet announced Wednesday it is rolling out a new product, Insight Solutions, designed to give advisers a closer look into clients’ spending habits via its data aggregator Yodlee.

As volatile markets and the uncertainty around the COVID-19 pandemic have put pressure on consumer finances, there is an opportunity for advisers to prove the value of their advice to clients by having a more granular view of spending habits which, in turn, would enable advisers to communicate a more personalized financial plan, according to Brandon Rembe, head of product at Envestnet Yodlee.

According to a study by Cerulli Associates, investors are seeking an adviser who provides more transparency, reassurance and tailored guidance as a result of the pandemic.

In fact, 56% of investor households rank transparency in interactions as extremely important when choosing an adviser, according to the study. “An advisor’s bedside manner can make or break the adviser-investor relationship during turbulent times,” according to Marina Shtyrkov, senior analyst at Cerulli.

With Insight Solutions, once a client opts to aggregate their accounts — like their Fidelity custodial account and bank account — Yodlee pulls that data together, runs analytics and can alert an adviser when a client’s spending habits need adjustment, according to Rembe.

For example, advisers will get alerted if a client changes their job, if their income increases or decreases, or if they are spending a large amount on subscription services or at frequently-used merchants.

Envestnet declined to disclose specific fees for the product, but noted pricing varies on a case by case basis.

“Financial service providers will have access to meaningful consumer insights faster and more affordably than by growing their own data science team,” Rembe said.

The solution is API-driven and fully white-labeled, which means it can be embedded into any digital platform an adviser wants from smartphones to desktops, he said. For an adviser that is not already an Envestnet client, Insight Solutions can be purchased standalone.

Insight Solutions, which is still in beta testing, will be available by the end of the third quarter to the more than 100,000 advisers Envestnet works with, as well as advisers outside the TAMP’s network, according to Rembe. Insight Solutions will be fully embedded into the client portal for Envestnet Tamarac, too.

Yodlee, which was acquired by Envestnet in 2015 for $590 million, is arguably the largest aggregator of consumer financial data in the country. Banks, brokerages, independent advisers and financial technology startups rely on Yodlee to access, collect and analyze information from various financial accounts.