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Financial Planning > Behavioral Finance

Envestnet | Yodlee Adds ‘Hyper-Personalization’ for Advisors

By Jeff Berman

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Envestnet | Yodlee introduced Insights Solutions, application programming interfaces that the company said Wednesday use machine learning to help advisors and other financial service providers offer clients personalized views of their finances.

Insights Solutions, launching in the current quarter, were designed to help financial institutions and fintech firms grow their market shares by enabling “hyper-personalized digital financial experiences and providing the data needed for customer segmentation,” the firm said, noting these experiences have been requested by advisors and financial service companies.

Envestnet | Yodlee’s new APIs “enable financial service providers to develop experiences that engage customers proactively across their financial wellness and financial planning channels,” it noted.

By using machine learning techniques and algorithms, financial service providers can offer clients a “360-degree, personalized view of their finances to help them make better decisions at all stages of life such as saving for retirement, starting an emergency fund or managing monthly expenses,” the company said.

The “combination of actionable insights, unique peer benchmarking capabilities and personalized views allow digital financial experiences to provide timely and impactful virtual financial assistance,” the company said.

Brandon Rembe, senior vice president of product at Envestnet | Yodlee, called hyper-personalization the “new baseline for success,” saying financial institutions and fintech firms that have a “more advanced understanding of consumers and tailor their offerings accordingly will have a strategic and competitive advantage.”

Providing a “more granular understanding of consumers is no longer a ‘nice-to-have’ item, but a business imperative” for advisors and other financial institutions and fintech firms, according to the company.

The firm pointed to a McKinsey & Co. study from last year that estimated the value of hyper-personalization within the financial services industry at between $200 billion and $450 billion.

Insights Solutions offer users a range of financial wellness insights that will help consumers benefit from actionable guidance such as predictive cash flow capabilities, including projected warnings and forecasts; alerts based on spending, categories, credit limits and refund monitoring; and spending insights that cover subscriptions and frequently used merchants, the firm said.

— Check out Envestnet’s New RIA Planning Tool Is a ‘Good Start’: Bruckenstein on ThinkAdvisor.

Jeff Berman

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