Envestnet adding lending option to its wealth services

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The wealth management technology firm Envestnet will soon offer loans through a new partnership with the fintech Advisor Credit Exchange.

It will give advisers using Envestnet’s platform a way to connect their clients directly with lenders, Envestnet said. It plans to start offering consumer loans early in the fourth quarter of this year and commercial loans in the first half of 2020.


“We believe advisers who offer integrated advice to their clients can help them achieve better outcomes,” Bill Crager, the CEO of Envestnet Wealth Solutions, said in a press release issued Tuesday. “Building a lending solution into the platform is crucial for Envestnet to continue to bring advisers the tools they need to maintain an advantage over competitors, and provide the most comprehensive financial wellness services to their clients.”

Envestnet, based in Chicago, made big strides into data and analytics four years ago when it acquired the data aggregator Yodlee. It has since launched personal financial management apps like OK to Spend and AI Fincheck as well as a machine learning aggregation and analytics tool meant to work with Amazon’s Alexa.

The amount of data Envestnet has on its clients should give advisers a strong picture about any particular client’s ability to borrow, Crager said in an interview Wednesday. Advisor Credit Exchange created the lending platform and will collect a fee for each loan that is made, he said.

Crager said that Envestnet is still negotiating with several large banks and nonbank lenders and declined to provide key details about its consumer lending plans, such as the loan terms, amounts and interest rates that are anticipated. He said he expects Envestnet will ultimately connect with about half a dozen national and large regional banks, as well as a handful of “significant” nonbank lenders.

Envestnet plans to ultimately offer a variety of consumer loans, which could include securities-based lending, mortgage lending, loans backed by fine art and other luxury assets, and unsecured consumer lending.

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