Investors on the Betterment platform can now securely sync outside financial accounts—including 401(k)s, individual retirement accounts (IRAs), taxable accounts, mortgages and loans held at other institutions—with their Betterment account. This will allow users to see their total net worth in one place, and it will help Betterment give better, more holistic personalized advice.
Account aggregation will help Betterment identify where users may be holding idle cash that could be turned into investment growth opportunities, identify where money could be lost to high fees, and then help customers take action on the advice.
In 2015, Betterment launched Betterment for Business, an integrated 401(k) recordkeeping and advice platform.
Betterment’s goal is to be an investor’s central financial relationship, according to Jon Stein, founder and chief executive, adding that the aggregation of accounts helps investors see all their wealth in one place as well as helping Betterment to provide better investing advice.
Betterment reports that it now manages more than $3.7 billion in assets.