Vestwell, a digital recordkeeper for 401(k)s and savings plans, has forged a partnership with JPMorgan Chase.
JPMorgan Asset Management will be using
"Enhancing our offering by coupling a modern technology platform with an assigned client success professional, like Vestwell, will enable us to quickly and efficiently meet the increasing demand [as the retirement industry grows]," said Steve Rubino, head of retirement at JPMorgan Asset Management.
Vestwell has also formed partnerships with several banks including Morgan Stanley at Work, the workplace solutions arm of Morgan Stanley; Wells Fargo; and RBC Clearing and Custody.
However, "this new partnership with JPMorgan showcases the flexibility in creating access to workplace savings programs through thousands of bank branches and digital distribution solutions to reach a significantly larger audience of small businesses across the country," said Aaron Schumm, founder and CEO of Vestwell, via email.
As JPMorgan expands its recordkeeping options in the small plan market, "Vestwell's recordkeeping technology helps JPMorgan provide its small business clients with a user-friendly and streamlined solution, including small businesses that require the use of TPA [third party administrator] involvement," Schumm said.
Wealth managers are focusing on small-business retirement plans "for both offensive and defensive purposes," said Andrew Besheer, the director of Aite-Novarica Group's wealth management practice, via email. "Vestwell has partnered with a number of well-known wealth managers to deliver their retirement plan platform, but JPMorgan Chase is certainly one of the biggest names on their list. For JPMorgan, this gives them a great platform to allow their advisors to offer a service that aligns strongly with their small and midsize business banking relationships. This should extend wealth management into those relationships, creating uplift for that business as well as enhancing stickiness for the banking relationships."
Vestwell was one of American Banker's
