How they describe themselves: Blooom is a whole new way to 401k. In the US, there are over 50M people participating in employer sponsored retirement plans, commonly 401ks. The vast majority of these folks are significantly mismanaging their accounts. In short, blooom’s mission is to fix as many of these 401ks as possible. Pie charts and line graphs with a gazillion indecipherable colors aren’t helping anyone these days – especially the average 401k investor. Blooom has developed a revolutionary way to open 401k investors’ eyes and outsource the management of their 401k – regardless of where it is held. We are an online Registered Investment Advisor firm that was co-founded by a few Midwest guys that have over 30 years experience in managing investments.
How they describe their product/innovation: The blooom app collects basic user data (name, email, age), and asks the user to select where their 401k is currently held. Once selected, the user’s credentials are entered and blooom goes to work to analyze their current investment allocation across 25,000+ different funds to generate a comparative analysis without a bunch of financial mumbo jumbo. Blooom displays how their 401k should be allocated and gives the user some latitude to adjust the recommended allocation. In a few more steps, the user can then hire blooom to make these changes and, more importantly, rebalance and adjust the allocation for the user going forward. It is a new and intelligent way to get help with your 401k . . . all for just $10 per month.
Product distribution strategy: Direct to Consumer (B2C), Direct to Business (B2B), through benefits exchanges, Professional Employment Organization, and small businesses