Prumentum Group, a wealth tech firm based near San Francisco and Plancorp, a financial advisory firm are partnering to develop a hybrid robo for customer’s wealth management tasks. The company won a $25 million investment round, and acquired a minority stake in he advisory firm Plancorp.
The digital platform is robustly built, capable of competing with Wealthfront and Betterment in any robo-advisory game. Former employees of Silicon Valley firms like Salesforce and Cisco are the latent talent behind the development of BrightPlan. They envision that a combination of technology and human advice will be able to excellently serve a large number of consumers directly.
To achieve the goal of developing such hybrid robo, Prumentum Group acquired a minority stake in the investment advisory firm Plancorp. According to the Prumentum co-founder Marthin De Beer, the company has acquired an initial 40 percent of the stakes in Plancorp. Alongside, they have an option to purchase 100 percent of the advisory firm, later, through an equity exchange. The advisory firm in St. Louis is already having $3.6 billion in assets under their management. Plancorp has excellence in their service and decades of experience both, serving high net worth families, organizations, and individuals.
Plancorp President Chris Kerckhoff says that Plancorp, for many years, has been actively pursuing an innovative solution that extends beyond the focus only on investment. The partnership will enable them to provide the hybrid solution which they were seeking. Prumentum Group shares the same values and commitment so as them to the clients, adds Kerckhoff. He also says that they are looking forward to serving their clients with the hybrid platform BrightPlan.
Prumentum, moreover, believes that its tech platform will help the advisory firm to attract more wealth management clients. It is working with a well-established advisory firm will allow BrightPlan extend beyond just optimizing and rebalancing the investment accounts. The robo-advisor would be able to offer a deeper level of financial advice to their users.
The role of the BrightPlan would be to evaluate the user’s finance and develop a set of financial objectives. On the other side, users can directly track their goals in real time, in conjunction with their assets. The robo-advisor firm says that the platform provides clients with access to digital platform and financial advocate whenever they need.
Prumentum is heading towards hybrid strategy, but it has to face much competition in the market. Betterment, earlier this year, announced that it would make robo-advisory financial service available to its users.