Dubbed ‘the Apple of finance’, Jon Stein and Eli Broverman’s New York company Betterment is delivering millennial disruption to one of the world’s most profitable industries. Founded following Stein’s frustrations with his then mistake-laden brokerage accounts, the young duo set out to answer the question a lot of disillusioned investors ask themselves: ‘What should I do with my money?’
They decided to develop a user-friendly system that would offer financial advice based on an algorithmic process. The claim is that Betterment’s automated goal-based investment service is both more human and more straightforward than conventional financial management plans. While it dishes up advice through so-called robo-, advisors, its customer service, intuitive design and ease of access are all core to the business ethos. As Stein says ambitiously, ‘We want to build a financial services company that people love.’
The numbers suggest he’s on the right road. Since launch in 2008, the company has raised $105m (£73.5m) in total equity funding and currently manages north of $3bn (£2.1bn) in assets from 125,000 customers. With its footing in the consumer market now established, thanks to low fees and a suite of easy-to-use applications, the company has its eyes set on business trade, and in January launched Betterment for Business. The plan? Targeting the 401(k) retirement savings plan space, which Stein believes is ‘in desperate need of significant change’. Change Betterment appears well placed to deliver.
Visit Betterment here.
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