Personal Capital Raises $50 Million in Round Led by IGM Financial

Silicon Valley-based wealthtech player Personal Capital is living up to its name as it has raised $50 million in a Series F funding round led by IGM Financial, reports Antony Peyton of Fintech Futures (Finovate’s sister publication).

The firm is in a personable mood as it has recently surpassed $8.5 billion in assets under management and two million registered users on its platform, which tracks more than $650 billion in aggregated account value.

The company didn’t go into specifics, but the funding will be used for growth, enhance its technology platform, and invest in partnerships.

“We have stayed laser focused on our mission of building a business that uses the ideal combination of technology and advisors to help Americans achieve clarity and confidence in their financial lives,” said Jay Shah, CEO of Personal Capital.

In terms of details, it has launched Smart Withdrawal, a personalized and interactive withdrawal strategy planner for retirement.

The company also announced a partnership with Alight Solutions and AllianceBernstein to create WealthSpark that will provide American workers with insights to their finances through Personal Capital’s technology.

Personal Capital is headquartered in Redwood City with hubs in San Francisco, Denver, Dallas, and Atlanta. It was founded in 2009.

IGM Financial is a Canadian personal financial services company, with approximately $154 billion in total assets under management. Its activities are carried out principally through IG Wealth Management, Mackenzie Investments and Investment Planning Counsel.

Personal Capital demonstrated the One Click Investment Proposals feature of its platform at FinovateSpring 2014.  The company is also a veteran of our developers conferences, most recently providing a presentation titled Data-Driven Account Opening at FinDEVr Silicon Valley in 2016.

Finovate Alumni News

On Finovate.com

  • Personal Capital Raises $50 Million in Round Led by IGM Financial.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alums Shine in 2019 Forbes Fintech 50 Roster

A baker’s dozen of Finovate alums has been honored this week with spots on the 2019 Forbes Fintech 50, an annual aggregation of what the editors called “the most innovative companies in fintech.”

Here are the Finovate alums that made the cut. Read the full list.

“Recognition as a leading innovator in fintech is tremendous validation for the hard work we’ve done at Marqeta to open the industry up to the possibilities and opportunities of modern card issuing,” company CEO and founder Jason Gardner said. Marqeta is among the 20 companies to make its first appearance on the Forbes Fintech 50 roster.

Also earning their first appearances on Forbes Fintech 50 roster are New York based mobile investment platform Stash and San Francisco supply chain payments innovator Tradeshift.

“Very excited to be included in the 2019 Forbes Fintech 50!,” Stash tweeted once the news was released at the start of the week, “Monday = made.”

“We made the list!” Tradeshift tweeted this morning.

Summarizing this year’s selection of top fintechs, the editors noted that while 19 out of the 50 fintechs featured are unicorns with valuations of more than $1 billion, a nearly equal amount – 20 startups – are making their first showing on Forbes top fintech list. The two areas where newcomers were more prevalent, according to the editors, were payments technology and startups serving the un- and underbanked.

Finovate Alumni News

On Finovate.com

  • Pindrop Advances into Smart Devices with $90 Million in Funding.

Around the web

  • iSignThis begins accepting customer deposits to its own issued International Bank Account Numbers (IBANs).
  • Personal Capital moves headquarters to Redwood Shores.
  • Signifyd opens EMEA headquarters in London to support its ecommerce fraud protection business in Europe.
  • Juvo expands across Asia with regional headquarters in Singapore.
  • Ondot announces new digital card services platform to support U.K. banks.
  • Lighter Capital provides NinjaCat $1.1 million.
  • R3’s new Corda App supports Ripple’s XRP.
  • Upserve (formerly Swipely) releases newest point-of-sale device, Upserve POS, now available for Android.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • KPMG Acquires Minority Stake in Alternative Credit Scoring Specialist, AdviceRobo.
  • Thinking Capital, National Bank Expand Funding Options for Canada’s SMEs.

Around the web

  • Australia’s business bank Tyro to offer flexible same-day settlement and payroll integration courtesy of a partnership with Xero.
  • Spreedly unveils latest version of its Account Updater solution.
  • Dwolla discontinues its last branded solution Transfer; pivots to focus on Dwolla Platform, the company’s white-label API.
  • Klarna to acquire Close Brothers Retail Finance (CBRF).
  • Saudi Arabia’s National Commercial Bank partners with Ripple for instant settlement of cross-border money transfers.
  • WorkFusion launches Partner Portal to support rise in AI-driven automation engagements.
  • Solna launches its intelligent invoicing tool powered by credit score data.
  • Personal Capital Promotes Craig Birk to Chief Investment Officer.
  • Moody’s Analytics partners with Cortera on a small business solution.
  • Arxan launches advanced protection for client-side eeb apps.
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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

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  • Digital lending platform Roostify announces its app is now available on the Salesforce AppExchange.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

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  • Klarna to provide pay later service for U.K. retailer, The Fragrance Shop.
  • Finastra to support fintech collaboration in the Middle East by joining Bahrain FinTech Bay.
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  • Bloomberg reports: Google and Mastercard Cut a Secret Ad Deal to Track Retail Sales.
  • Personal Capital launches “Retirement Paycheck” service to simplify retirement income.
  • Salesforce selects InvestGlass for EMEA fintech accelerator.
  • Black Enterprise profiles DarcMatter co-founder, Natasha Bansgopaul.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Personal Capital Exceeds $7 Billion AUM, Lands $15 Million Credit Extension

Wealth tech player Personal Capital surpassed a growth milestone this week, reaching $7 billion in assets under management. The company also announced it received a $15 million credit extension from Silicon Valley Bank, adding to the $25 million credit the bank offered Personal Capital in 2016.

Personal Capital balances its high-touch digital advisory services with freemium tools that help users track all of their investments in one place and measure their progress against their retirement goals. The company also offers access to registered personal financial advisors who offer tailored investment advice for a fee. While this model seems to have scaled relatively well since Personal Capital’s launch in 2009, the company’s assets under management have not grown as quickly as its competitors Betterment, which currently has $13.5 billion under management, and Wealthfront, which has $10 billion under management.

This news comes as the company wraps up one year of operation under new CEO, Jay Shah, who took over operations from the company’s founder and original CEO, Bill Harris. Before his appointment, Shah served in the roles of Personal Capital’s chief information officer and chief operating officer.

“Personal Capital was built on the idea that transparency and a consumer’s ability to have a holistic view of their finances can transform their financial life,” said Shah. “Our team has worked hard to make sure Americans have the visibility that is necessary to realize their investing, spending and saving goals. As Registered Investment Advisors, we remain committed to putting clients first and advocating for an industry-wide fiduciary standard. Clearly, that is resonating.”

Founded in 2009, Personal Capital most recently presented at FinovateSpring 2014 where it debuted One Click Investment Portfolios. Earlier this spring, the company began offering socially responsible tools that make it easy for investors to put money into causes that matter to them. Personal Capital has raised $240 million.

Finovate Alumni News

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  • CrowdFlower Rebrands as Figure Eight to Take Advantage of Booming Interest in AI.
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  • Plaid Goes International.
  • Personal Capital Exceeds $7 Billion AUM, Lands $15 Million Credit Extension.

Around the web

  • DeepTarget and Segmint collaborate, combining Segmint’s Data Insights and DeepTarget’s cross-selling platform.
  • NYMBUS wraps up 4-month conversion process for Surety Bank.
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  • Allied Irish Bank extends agreement with TSYS to continue processing the bank’s credit and debit card portfolios.
  • Lleida.net granted 4th U.S. patent.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

WealthSpark Replaces the Personal Capital 401(k)

Wealth tech company Personal Capital has launched a new 401(k) product through Alight Solutions, which will market the product to employers. WealthSpark, the new offering, is a joint effort between Personal Capital and AllianceBernstein (AB).

The new tool is a qualified default investment alternative (QDIA) in an employer-provided savings plan. A QDIA aims to encourage employees to invest assets in appropriate long-term savings vehicles.

To help users find those savings vehicles, WealthSpark leverages AB’s customized investment portfolios and combines it with Personal Capital’s digital wealth management planning tools, which curate 18 data points about a user’s financial situation and future plans. This information helps WealthSpark users understand their current finances as well as gain insight for decisions about their future, such as education, retirement, and buying a home.

Jennifer DeLong, head of defined contribution at AB, said, “The solution combines asset allocation with technology to deliver a more personal participant experience. By better understanding a participant’s individual circumstances, we can create a series of optimized glide paths to tailor outcomes to participants’ unique financial objectives.”

WealthSpark isn’t Personal Capital’s first foray into employer-sponsored plans. At FinovateFall 2012, the California-based company launched its own plan– the Personal Capital 401(k)— a professionally managed alternative to a traditional 401(k). “We scoured the landscape for better 401(k) plans,” said then-CEO Bill Harris in the demo. “Finally a light went on– let’s build a better 401(k) plan. So we did and I’m delighted to launch here at Finovate, America’s Best 401(k).”

The plan offered solo 401(k)s for sole proprietors, custom 401(k)s for large and complex businesses, 403(p) plans for non-profits, defined benefits plans for tax benefits, and cash balance plans. The plan boasted fees of one half of one percent and access to the Personal Capital dashboard.

WealthSpark, the new offering, will help Personal Capital focus on its core competencies– financial analysis and wealth management planning– by relying on partnerships. Alight Solutions will tap into its existing customer base of 1,400 business clients to market WealthSpark, and AB will use its pre-existing portfolios for the investment side.

Founded in 2009, Personal Capital most recently presented at FinovateSpring 2014 where it debuted One Click Investment Portfolios. Earlier this spring, the company began offering socially responsible tools that make it easy for investors to put money into causes that matter to them. Personal Capital has raised $240 million.