Envestnet announced Tuesday the integration of its data analytics into MoneyGuide’s financial planning platform, allowing advisers free access to a multitude of data points that are structured directly into its online dashboards.
The tools are available with no additional cost and include overviews of client segmentation, plan detail analytics based on age and goals, as well as exportable excel master grids.
“This tool will help our users have insights into their planning activity so they can begin to better manage their planning book of business,” president of Envestnet MoneyGuide Tony Leal said in an email, adding that advisers can leverage analytics drill down to specific opportunities like tax planning strategies.
Envestnet’s analytics uses data associated with clients and their plans within MoneyGuide and displays analytical insights — planning usage, key metrics, and update patterns — back to the adviser in centralized hub, according to Leal.
“Even if you are a solo practitioner, it can be hard to keep track of how many plans you’ve created this month, what clients have plans or don’t, or how many of your clients, for example, have college savings goals,” said Joel Bruckenstein, founder of the Technology Tools for Today conference. “The analytics give advisers the tools to target information at the right people and determine which clients need immediate attention.”
When an adviser logs into MoneyGuide, they will now see an Envestnet Analytics link under the tools list, which provides analysis of planning usage, key metrics and update patterns via a web-based dashboard with filtering and export options, according to the announcement. For example, an adviser can filter clients by age and look at which clients may be approaching retirement and identify 401(k) rollover opportunities.
Overall, Bruckenstein told InvestmentNews the integration, which builds out on Envestnet’s $500 million acquisition of MoneyGuide last March, marks the first concrete collaboration between the tech giants.
Envestnet works with more than 100,000 advisers across the U.S., according to the company’s press release. Meanwhile, 35% of financial advisers use MoneyGuide for financial planning, according to InvestmentNews’ 2020 technology survey.
Having Envestnet Analytics available for free is a smart business move, Bruckenstein said, because the firms will likely roll out a premium version of the data analytics tool that goes a lot deeper. “Advisers are going to be willing to pay a monthly charge for a premium version because they see value in it after experiencing the free version,” he said.
Moving forward, the next step for the firms may be deeper data integrations between Envestnet and MoneyGuide via the Tamarac platform. “Next, clients who use both MoneyGuide and one of the core investment platforms, like Tamarac, under Envestnet will be able to combine data — giving the adviser a total overview of everything that’s going on in the practice.”
Already, advisers have the ability to upgrade to premium analytics that marry their planning data with investment and risk data through Envestnet Analytics offerings, according to the announcement.
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