BERWYN, PA — At a time when consumers increasingly look to their financial institutions to provide holistic experiences encompassing a broad range of financial experiences in one place — from savings and checking to bill pay and investing – Envestnet unveiled its embedded investment solution, providing a digitized process for banks, credit unions, and financial advisors to offer investing solutions within their own apps and websites to customers within their existing banking experience. The service, consisting of diversified portfolios invested in exchange-traded funds and optional thematic stocks, enable financial institutions to retain deposits within their own ecosystem and serve smaller account sizes in an digital fashion.
“Our data and analytics indicate that banks and credit unions are losing billions of dollars to digital investment platforms, as customers leave their banks to seek out these investing solutions,” said Dani Fava, Group Head of Product Innovation at Envestnet. “Envestnet is giving these entities a turnkey solution to help retain customers, by offering a seamless investing integration—so they can experience a more holistic financial experience with their current institution.”
Central Trust Bank, a personal and business bank with locations throughout the Midwest, is the first to leverage Envestnet’s latest capabilities. In partnership with Envestnet, Central Bank has introduced Digital Investor, an online investing experience seamlessly embedded within the Central Bank Mobile Banking App and Online Banking. This partnership will enable Central Bank customers to embark on their investing journey by selecting investment portfolios recommended by Envestnet based on their financial goals.
“Today’s consumers are looking beyond traditional banking products – even as they begin their financial journey. We’re excited to partner with Envestnet to empower our customers to optimize their finances directly within their banking app – while providing them access to the investment side of the house,” Dan Westhues, Executive Vice President & Chief Marketing Officer of Central Bank. “This will greatly streamline the user experience of our customers and ease the process of managing their personal finances, also providing them with thematic investing options through Envestnet.”
Envestnet’s embedded investing solution marks a major leap forward in democratizing investing, offering a user-friendly and inclusive approach that empowers individuals to make informed financial decisions and build an Intelligent Financial Life. Technology from custodians like DriveWealth, who enable a completely digital onboarding experience make this possible. Beyond its use within financial institutions, embedded finance will play a pivotal role in providing easy access to investing for millions of individuals who have traditionally been excluded from such tools.
Attendees at this year’s Money 20/20 conference in Las Vegas, NV from October 22 – 25 can learn more about embedded investing by attending Dani Fava’s live presentation, ” Stop the Bleed: How Embedded Investing Can Save Banks Billions,” held on Tuesday, October 24 at 2:15 p.m. on the “Under the Stars” stage, or by stopping by the Envestnet Booth in Money Hall, #14327.
To support the growth of this transformative offering, Envestnet has established Envestnet Embedded Advisory, an SEC-registered investment advisor that will serve as the asset manager for the embedded finance solutions. Investment accounts are held at independent broker-dealer and custodian DriveWealth, LLC, member FINRA/SPIC.
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