Envestnet Strengths, Domain Expertise, and Key Differentiators
Envestnet operates as a provider of intelligent systems specializing in wealth management and financial wellness. The company's unified technology serves to enhance advisor productivity and fortify the wealth management process. This empowerment extends to enterprises and advisors, enabling them to gain a deeper understanding of their clients and deliver superior outcomes. The technology also facilitates financial advisors in managing client outcomes more effectively, thereby strengthening their practices.
In delivering institutional-quality research and advanced portfolio solutions, Envestnet relies on Envestnet | PMC, its Portfolio Management Consultants group. Envestnet | Yodlee stands as a prominent data aggregation and analytics platform, driving dynamic, cloud-based innovation for digital financial services. For leading rebalancing, reporting, and practice management software for advisors, Envestnet looks to Envestnet | Tamarac. Additionally, Envestnet | Retirement Solutions offers an integrated platform that combines cutting-edge practice management technology, research, data aggregation, and fiduciary managed account solutions.
Envestnet Recent Developments
In November 2023, Envestnet launched Envestnet Retire Complete, presenting financial advisors with an opportunity to provide their clients with access to a competitive retirement savings program. This solution offers retirement plan sponsors a cost-effective and streamlined plan, accompanied by fiduciary and investment support. Developed in collaboration with retirement services provider Empower, Envestnet Retire Complete aims to enhance the prospects for participants to achieve a more secure retirement.
In October 2023, Envestnet introduced its embedded investment solution, responding to the increasing trend among consumers who seek comprehensive financial experiences from their institutions. This innovative offering provides a digitized process for banks, credit unions, and financial advisors to seamlessly integrate investing solutions into their own applications and websites, enriching the existing banking experience for their customers. The service includes diversified portfolios invested in exchange-traded funds, along with optional thematic stocks. It empowers financial institutions to retain deposits within their ecosystem and efficiently cater to smaller account sizes in a digital format.
In April 2021, Envestnet introduced an environmental, social, and governance (ESG) due diligence program as part of its ongoing efforts to enhance the proprietary due diligence framework. This initiative enables the research team at Envestnet to engage in more meaningful conversations with asset managers across the Envestnet ecosystem regarding ESG investment processes and strategies. The additional research and due diligence provided by PMC are aimed at assisting financial advisors and their clients in making well-informed ESG investment decisions.
In August 2020, Envestnet | Yodlee launched Insights Solutions, with the objective of aiding financial institutions and FinTechs in expanding their market share. This involves enabling hyper-personalized digital financial experiences and supplying the necessary data for customer segmentation. Concurrently, Envestnet | MoneyGuide introduced the New Planning Insights Tool through Envestnet Analytics. Through collaboration, MoneyGuide and Envestnet Analytics are offering free plan analytics to MoneyGuide clients. This new service, integrated into MoneyGuide, provides analysis of planning usage, key metrics, and update patterns.
Additionally, in 2020, Envestnet partnered with Dynasty Financial Partners to establish the Advisor Services Exchange (ASx). This platform aims to provide financial advisors using Envestnet's platforms with an enhanced set of tools and services to support the development and growth of their businesses.
Envestnet Mergers and Acquisitions (M&A) Activities
In 2022, Envestnet made several announcement regarding its acquisition of 401kplans.com and Redi2 Technologies. 401kplans.com a digital marketplace specializing in 401(k) retirement plans. This platform is designed to simplify retirement plan distribution and due diligence processes for financial advisors and third-party administrators. The acquisition reflects Envestnet's continuous dedication to the retirement plan industry and its strategic investment in technologies and solutions that enrich its financial wellness ecosystem. Through this move, Envestnet aims to support advisors in facilitating their clients to lead an Intelligent Financial Lifeâ„¢. Redi2 Technologies, Inc. (Redi2), a prominent provider of revenue management and hosted fee-billing solutions within the global financial services industry. This strategic move is aimed at fostering additional connections within the Envestnet financial wellness ecosystem, benefiting asset managers, wealth managers, and registered investment advisors (RIAs).
In April 2021, Envestnet made an acquisition, bringing fintech innovator Harvest Savings & Wealth Technologies into its portfolio. Harvest Savings & Wealth Technologies is recognized for providing automated goals-based saving tools and wealth solutions tailored for banks, credit unions, trust companies, and various other financial institutions.
Envestnet had previously acquired PIEtech Inc in May 2019. PIEtech is the originator of the MoneyGuide family of financial planning applications. Integrated with over 150 wealth management data and technology providers, the MoneyGuide solutions facilitated the creation of nearly 2 million financial plans in 2018.
Envestnet Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Envestnet applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Envestnet and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Tamarac, Yodlee Financial Cloud, Envestnet Data & Analytics customers.
Envestnet Overview
35 East Wacker Drive Suite 2400
Chicago, IL, 60601, United States
1 312-827-2800
https://www.envestnet.com/
Ownership: - NYSE: ENV
Number of Employees: 3100
Functional Markets: Analytics and BI, ERP Financial, ERP Services and Operations,
Key Verticals: Banking and Financial Services,
Envestnet Key Enterprise and Cloud Applications
Tamarac, Yodlee Financial Cloud, Envestnet Data & Analytics
Envestnet Revenues, $M:
| Type/Year | 2022 | 2023 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
| Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Envestnet Revenue Breakdown By Type, $M:
Envestnet Enterprise Applications Revenues By Functional Markets, $M:
Envestnet Enterprise Applications Revenues By Verticals, $M:
Envestnet Revenues By Region, $M
| Region | % of Total Revenues | 2023 Total Revenues, $M | 2023 Enterprise Applications Revenues, $M | 2023 Cloud Applications Revenues, $M |
|---|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
Envestnet Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
Envestnet Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified Envestnet Customers
No. of Envestnet Customers: 4900
No. of Envestnet Enterprise Applications Customers: x
No. of Envestnet Cloud Customers: x
No. of Envestnet Cloud Subscribers: 30 million
More than 103,000 advisors and over 4,900 companies, encompassing 16 of the 20 largest U.S. banks, 46 of the 50 largest wealth management and brokerage firms, and over 500 of the largest Registered Investment Advisers (RIAs) along with numerous internet services companies, utilize Envestnet technology and services. The Envestnet Data & Analytics platform is subscribed to by over 1,200 financial institutions, financial technology innovators, and financial advisory firms, including 15 of the 20 largest U.S. banks.
In October 2023, Envestnet, Inc. disclosed a partnership with First Command Financial Services, Inc. This collaboration grants the network of financial advisors associated with First Command Financial Services access to Envestnet's integrated financial ecosystem. The offerings include enhanced reporting and portfolio management capabilities, CRM integration, advanced personalization features such as tax overlay optimization, financial planning tools available through Envestnet|MoneyGuide, and comprehensive data aggregation facilitated by Envestnet | Yodlee.
Among the clientele benefiting from Envestnet's offerings are renowned entities such as Fidelity Investments, Northwestern Mutual, National Financial Partners, National Planning Holdings, Russell Investments, HighTower, US Bank, Scotiabank, Fifth Third Bank, and many others.
Envestnet Market Opportunities, M&A and Geo Expansions
During 2022 the company made several acomplishments , UBS, Envestnet, and iCapital jointly announced the launch of the Alternatives Exchange, a live platform offering private market investment opportunities to Envestnet's client base. With over 35 funds available from managers globally and across various strategies, users of Envestnet's Alternatives Exchange now also have access to the AltsEdgeâ„¢ Certificate Program. This educational initiative, jointly created by iCapital and the Chartered Alternative Investment Analyst (CAIA) Association, aims to enhance advisors' understanding of the alternative investment space and its potential benefits for clients.
Envestnet has established a partnership with Door, a leading global digital due diligence and risk management platform, to streamline and optimize research on asset managers and their investment strategies throughout the Envestnet ecosystem and the industry. In the realm of strategic partnerships, Envestnet announced a collaboration between Tata Consultancy Services (TCS) and Envestnet Data and Analytics to enhance operational scale and business agility. TCS, a global leader in technology and consulting, will support the global scaling of Envestnet's Data and Analytics business in Bangalore, India, utilizing technologies that anticipate client needs.
Envestnet also disclosed a partnership with FNZ, a leading global wealth platform, to create a fully digital, integrated wealth management experience for the U.S. market. The integration of Envestnet's and FNZ's platforms will enable real-time account opening, funding, digitally automated servicing, and maintenance capabilities throughout the client account lifecycle. Furthermore, this collaboration will allow the integration of unique insights and experiences generated by Envestnet Data & Analytics' Wealth Data Platform into FNZ's platform, benefiting FNZ's global customer base. Leveraging FNZ's international scale and data sets, Envestnet's Wealth Data Platform aims to assist enterprises, advisors, and asset managers in running their businesses more effectively through advanced predictive models.
Over the past five years, Envestnet has invested over $800 million in acquiring eight companies, including the most recent and substantial acquisition of Yodlee for $590 million in August 2015. Envestnet | Yodlee now operates as a key player, offering a leading data aggregation and analytics platform that fuels dynamic, cloud-based innovation for digital financial services. The clientele for this service includes financial institutions, innovative Internet services companies, and third-party developers of financial applications.
With a current network of financial institution customers reaching hundreds of millions of end-users, Envestnet has a significant opportunity to expand its paid user base within existing customers. Internet service companies in their clientele boast a growing and diverse user base, presenting additional avenues for growth.
In 2021, Envestnet YieldX, a FinTech company specializing in reimagining fixed income, initiated a strategic relationship. Envestnet, in this collaboration, will be distributing YieldX technology and products through its platform. This move is designed to empower advisors associated with Envestnet, enabling them to assist their clients in achieving more favorable fixed-income investment outcomes. YieldX, marking a year of substantial growth and opportunities, also concluded its Series A funding round, with Envestnet leading the investment.
The acquisitions of PortfolioCenter and PIEtech played a crucial role in boosting revenues, particularly shifting towards subscription-based recurring revenues in 2019.
In an earlier partnership, Canaccord Genuity Group incorporated Envestnet's Enterprise Portal platform into its Canaccord Genuity Wealth Management business. This integration provides advisors and portfolio managers within the group with access to advanced account-management tools and performance reporting.
Envestnet Risks and Challenges
The company's risk exposure is directly tied to market dynamics, particularly reliant on asset-based recurring revenue derived from contractual percentages of Assets Under Management (AUM) or Assets Under Administration (AUA). Approximately 60% of our total revenue in the years ending December 31, 2023, 2022, and 2021 originated from asset-based fees. This percentage is subject to fluctuation over time. A reduction in the aggregate value of AUM or AUA could result in a decline in revenue, subsequently impacting our earnings. Market downturns may adversely affect our asset-based revenue in upcoming periods.
The expansion of Envestnet through acquisitions introduces additional risks. Potential challenges include inaccurate assumptions regarding future outcomes of acquired operations or assets, unmet expectations for cost reductions and synergies, unsuccessful and timely integration of acquired operations or management, limited understanding of acquired businesses' operations and markets, and the risk of losing key personnel.
Following the acquisition of Yodlee in 2015 for its extensive database of personal financial information, Envestnet faces the imperative task of establishing distinct competitive advantages. This is crucial for competing effectively with a rising tide of fintech startups, some of which have surpassed Yodlee by leveraging the prevalence of mobility and peer-to-peer transactions. Moreover, efficiently incorporating these acquisitions poses an additional challenge for sustained profitability.
Envestnet Ecosystem, Partners, Resellers and SI
In 2020, Envestnet broadened its presence in Canada through two strategic partnerships. The first involved a collaboration with Toronto-based automated communication and marketing platform AdvisorStream. Together, they developed a new application utilizing clients' financial data, allowing advisors to deliver personalized, compliance-approved media content tailored to each client's unique situation.
Envestnet Cloud Infrastructure Insights
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
For additional information on our methodologies, here's the link:
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