Less than 14 months since Betterment launched its robo 401(k) service, known as Betterment for Business, the firm announced a partnership with ADP, the business outsourcing firm for payrolls and employment benefits.
(Related on ThinkAdvisor: Betterment for Business Officially Launches Robo-401(k))
ADP, according to its website, is the largest provider of HR services in North America, and pays one in six workers in the U.S.
The partnership will allow employees of companies that use ADP’s payroll system to direct their 401(k) contributions to Betterment for Business through the ADP Marketplace, a cloud-based app for human capital management, beginning in the second half of the year. It’s designed for firms that already have 401(k) plans in place who could choose to convert to one managed by Betterment for Business.
In its statement announcing the partnership, Betterment for Business said the new partnership reflects a “rapid response to customer feedback” that will strengthen its ability to serve “midsized professional services firms.” Technology firms are another target client, according to a spokesperson.
(Related on ThinkAdvisor: Betterment Signs Up 300-Plus Retirement Plan Clients in 2016)