Financial advisors using the recently launched Envestnet Credit Exchange platform can now access a small lineup of lenders that includes TD Bank, Nationwide, First Citizens Bank and SunTrust’s LightStream division, Envestnet said Monday.
The four lenders are the first to join the platform, which launched in the fourth quarter of 2019, John Yackel, head of strategic initiatives at Envestnet, told ThinkAdvisor.
Additional lenders and a broader market expansion are planned for later this year, Envestnet noted, but it didn’t provide specific details including the exact timing. “Additional lenders will be added to expand the consumer and business loan options in the near future based on loan requirement needs of our advisors and clients,” Yackel said.
Nationwide joined the platform in partnership with Supernova Lending, Envestnet said, noting all the lenders added to the platform will offer advisors on the Envestnet platform a “broad range of loans with both secured and unsecured financing options, valued from $10,000 to $25 million or more.” Each lender was “curated based on product offering, service quality, and financing expertise,” Envestnet said.
In announcing Envestnet Credit Exchange last year, Envestnet said it collaborated with Advisor Credit Exchange (ACE), which is powering the platform.
The Envestnet Credit Exchange is available via the sponsor and advisor portals on the Envestnet platform, and is “actively taking loan referrals and onboarding advisor firms,” Envestnet said Monday.
The Credit Exchange’s “unique, sustainable value is that we offer multiple integrated lending solutions into the wealth management process on the Envestnet platform, curated with lending partners that offer choice and transparency for the advisor,” according to Yackel. “The Credit Exchange breakthrough provides data-driven, prequalified credit offers, which position advisors to recommend loans to their clients with exceptional ease and confidence,” he said in a statement.
“We believe advisors who offer unified advice — a component of which includes managing credit — can help their clients achieve financial wellness,” Bill Crager, interim CEO of Envestnet, said in a statement. “We are committed to bringing more choice to the enterprises we work with, as well as their advisors.”
The “key innovation” of the new platform is that the advisor using it “will know — in advance of speaking with a client — what pre-qualified loan options are available, along with clearly presented loan pricing and terms,” according to Peter Stanton, CEO of Advisor Credit Exchange. “This market intelligence significantly minimizes the risk of credit decline and concerns about competitive pricing,” he said in a statement, adding that the platform, “quite literally, takes the mystery out of lending for advisors and their clients.”
— Related on ThinkAdvisor: