Aaron Schumm, CEO of portfolio company Vestwell, discusses how the $7 trillion of defined contribution retirement assets are underserved by fintech. He also reviews how Vestwell can help advisors minimize the friction with plan sponsors through a flexible product.
Aaron Schumm, CEO of New York City-based Vestwell, believes retirement plans are an underserved market from a fintech perspective. He describes his company’s mission as “breaking down the friction points” that can develop in advisors’ work with plan sponsors. Those friction points include legal liabilities, costs and the cumbersome nature of designing and monitoring a plan, he says. Besides working with 401(K)s and 403(b)s, advisors using Vestwell’s platform can propose, implement and manage custom cash balance plans and custom profit-sharing. Plan proposals start with advisors inputting details they’ve received from the plan sponsor, including the plan adoption agreement, employee census and other information from the sponsor’s Form 5500.