Sales League Table 2020 | Banking Technology Winners

Results Announced!

IBS Intelligence launches BankTech Daily News

Subscribe today. Limited time offer.

The Black Swan Opportunity | Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

India FinTech Report 2020

Insights into the historical and projected market size of key FinTech categories. Subscribe now

Empower Retirement to acquire Personal Capital for $1bn

Empower Retirement, aimed to revolutionise workplace retirement savings has announced that the firm has entered into a definitive agreement to acquire Personal Capital, a digital-first registered investment adviser and wealth manager.

Under the agreement, Empower will acquire Personal Capital for $1 B in enterprise value, composed of $825 M on closing and up to $175 M for planned growth.

The combination expects to bring together Empower’s retirement plan services and integrated financial tools with Personal Capital’s digitally oriented personal wealth management platform. Retirement plan participants and individual investors can benefit from all the tools and advice they need to see a complete, 360-degree financial picture that includes their personal assets and liabilities and the ability to manage their progress toward their financial goals.

“Empower and Personal Capital are joining forces to take the next step forward in the evolution of an integrated platform to deliver personalised advice, financial wellness and comprehensive financial planning to millions of individual investors and retirement plan participants. The acquisition of Personal Capital and the integration of their tools and capabilities into the Empower offering is designed to create a best-of-breed platform — powered by digital and human advice — to help individuals achieve their financial goals. In addition, the retirement plan sponsors and advisors we serve will be able to offer their plan participants a more powerful retirement benefit that is highly valuable in a competitive labor market,” said Edmund F. Murphy III, President and Chief Executive Officer of Empower.

Strategic benefits of the business combination include:

  • Enhanced capabilities for individuals: Together, the companies expect to create a more robust enterprise with the scale, capability and technology to better serve individual’s savings, financial planning and retirement needs.
  • Expanded business-to-business retirement plan offering: The companies will have the capability to offer retirement plan sponsors’ employees a singular view of their entire financial picture.
  • Strong growth opportunities: By leveraging Empower’s scale and infrastructure, Personal Capital will be positioned to serve the growing segment of consumers who seek a combination of digital and human advice while helping to accelerate the capture of roll-overs and other out-of-plan assets.

Recently Xalles signed a Share Purchase Agreement to acquire 1Rivet Global, the International division of 1Rivet.

“In Empower, we have found a purpose-oriented partner that shares our values and drive to deliver better client outcomes and customer-focused innovation. When we founded Personal Capital over a decade ago, we set out to redefine the financial services landscape by always putting our customers first. By pairing consumer technology and human advice, we provide data-driven personalized financial solutions and help our clients find financial confidence at scale. With Empower, we are joining forces with a philosophically aligned partner to accelerate our original vision and mission,” said Jay Shah, Personal Capital’s President and Chief Executive Officer.

Empower Retirement serves all segments of the defined contribution plan market and provides services to plans of all sizes, including private-label recordkeeping clients. According to company data, Empower administers $656 B in assets for more than 9.7 M retirement plan participants as of May 2020.

Related IBS Intelligence Research

Related Posts

NAB

NAB to recruit bankers and advisers for high net wealth clients

National Australia Bank (NAB) announced that it will recruit 50 new bankers and advisers, as part of its new strategy to provide high net wealth clients with a single point of access for their financial needs, ranging from wealth creation, business growth to retirement needs and philanthropic investment. JBWere CEO and leader for NAB Private, […]

This post is only available to members.

Read More »

EQ launches new automated complaints management product

EQ has announced that it is launching a new automated complaints management product for the financial services industry, EQ Complaints Professional. The new solution is expected to enable firms to enforce their FCA compliance immediately as well as continually as regulation changes. Andrew Edler, MD of EQ Charter, commented, “We are delighted to bring this […]

This post is only available to members.

Read More »
bank, FinTech, neobank, smartbanks, challenger banks, Asia

Australia’s big 4 banks welcome the launch of open banking

The Competition and Consumer (Consumer Data Right) Rules went live on July 1, in Australia. This has been welcomed by the big 4 banks of the country – ANZ, Westpac, Commonwealth Bank and NAB where they will be sharing their customers’ data with third parties, when requested by the customer. Angus Sullivan, CBA’s Group Executive […]

This post is only available to members.

Read More »

Lendio facilitates $8 bn in PPP loans to 100,000 small businesses

Lendio, a leading marketplace for small business (SMB) loans, announced that the company has till now facilitated $8 B in Paycheck Protection Program (PPP) loans for 100,000 small businesses. The firm’s partnership with 300 SBA-approved financial institutions and FinTech leaders has helped the company to secure COVID-19 relief funds for several underserved segments of the […]

This post is only available to members.

Read More »