Fidelity has folded Pave Finance’s platform into its own offering for RIAs.
Financial services behemoth Fidelity has folded Pave Finance’s wealth management platform into its offering to provide registered investment advisors (RIAs) with automated wealth management services, officials say. The pair are seeking to capitalize on a swelling cohort of independent RIAs eager to claim a greater share of the market, with indications suggesting the wealth management business could double over the next decade.
The integration means Fidelity’s roughly 3,400 RIAs can now link their client accounts directly to Pave’s platform, giving them access to automated portfolio construction, portfolio management, and trading, officials add. Advisors can also use the vendor’s proprietary Asset Intelligence Layer and optimization engine, which has outperformed the S&P 500 by 285 basis points on an annualized basis.
By layering this automation on top of its existing wealth management services, Fidelity says advisors will be able to cut operational “friction” while delivering personalized, risk-managed portfolios. Officials described the move as a meaningful next step toward giving independent advisors the tools they need to compete with their Wall Street rivals.
“This integration marks an important step forward in expanding our reach and accelerating Pave’s mission of bringing greater automation to wealth management while expanding RIAs’ personalization capabilities,” says Christopher Ainsworth, chief executive officer of Pave Finance, in a prepared statement.
Need a Reprint?