Betterment Overview
Pro stress-test →Betterment is an American financial advisory company which provides digital investment, retirement and cash management services. As of September 2024, Betterment had more than $56 billion of assets under management and over 900,000 customer accounts. The platform democratizes wealth management through its robo-advisor technology and expanding suite of financial products.
Strategic Profile
Pro stress-test →The company's business model includes three areas of business: retail investment, a platform for advisors, and a 401(k) product for businesses. In February 2022, the business rebranded to Betterment at Work and announced the acquisition of the partner and customer relationships of Gradvisor, a platform that provides personalized college savings plans. Betterment competes as an independent robo-advisor with increasingly diversified revenue streams.
Competitive Landscape
Pro stress-test →Betterment's top competitors include M1, Stash and Wealthfront. As an independent robo without incumbents' captive distribution, Betterment must buy accounts and expand channels/products to scale, while tweaking pricing to bolster margins. The landscape includes both fintech disruptors and incumbent wealth managers offering robo-advisory services.
Industry Context
Betterment operates in Financial Services / Fintech (Robo-Advisory, Digital Wealth Management, Retirement Solutions).
Key facts
Founded: 2008 · Headquarters: New York, US · Employees: 626