Betterment Announces Record Growth in Q1 2021, Net New Clients Up More than 100% YOY

Leading wealth management platform now manages $29 billion in assets.

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Apr 16, 2021, 09:00 ET

NEW YORK, April 16, 2021 /PRNewswire/ -- Betterment, the largest independent digital investment advisor, today announced a record-breaking close to the first quarter of 2021. Betterment's unique, multi-pronged business —for Retail, 401(k), and Advisors—allows the company to meet clients wherever they are seeking financial advice, whether it's directly, through their employers, or via an advisor. Despite the economic uncertainty and market turbulence of 2020, all three businesses saw elevated engagement and continued traction. In the past 12 months Betterment has added over $10 billion, bringing total AUM to $29 billion.

In the first full quarter under the leadership of new CEO Sarah Levy, the company added 56,000 new clients to the platform, up 116% year-over-year, and beating a previous quarterly client record by 59%. In the first three months of 2021, client net deposits were over $1.5 billion, up 118% year-over-year.

"Our investing platform was built for 2020––despite tumultuous markets, we helped our clients stay on track to meet their long-term financial goals rather than react to short-term market fluctuations," said Levy. "Investors sought us out in record numbers this past year. In Q1, we added the most clients in a single quarter in our history, saw deposits steadily increase, and experienced record growth across all three lines of business. We reinvested this revenue growth into our D2C and B2B offerings, continuing to innovate to help our clients achieve better financial outcomes."

In March, Betterment announced the purchase of Wealthsimple's U.S. book of business. The company will add more than 17,000 clients and $190 million in assets under management at the end of June.

Betterment for Business—Betterment's 401(k) offering for small and medium sized businesses—also saw record growth in the past year as it expanded distribution channels, including from RIA's. In the last month, the company signed partnership deals with Zenefits and Bennie, making its award-winning* 401(k) retirement offering and a suite of employee financial wellness tools available to their growing customer bases.

Betterment for Advisors—Betterment's wealth management platform for RIAs—has seen exceptional growth over the past year as well. Year-to-date, deposits to the platform are up 96%. Betterment for Advisors recently announced the launch of Custom Model Portfolios, where advisors now have the ability to build their own model portfolios of ETFs while leveraging Betterment's sophisticated portfolio management features including: automated rebalancing, tax-loss harvesting, asset location, glide path rebalancing, and tax-optimized sales for withdrawals.

"At Betterment, we take our name to heart; continuously optimizing on behalf of our clients is in our DNA," said Betterment's newly appointed CFO, Peter Lorimer. "Our growth is built on the combination of an innovative, tech-first culture and the experience and trust of a company that's been delivering investment management results for over a decade."

About Betterment
Betterment is a technology driven financial services company that offers everyday services for spending and saving, alongside their core investing and retirement solutions. Since 2010, Betterment has had one mission: to help people make the most of their money so they can live better lives. Using modern technology, they empower their hundreds of thousands of clients to manage their money – for today, tomorrow, and someday – through personalized, expert advice; automated money management tools; and tax smart strategies that help keep taxes low across accounts. Learn more www.betterment.com.

Contact Info
Danielle Shechtman, [email protected]
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Betterment for Business LLC was selected amongst other applicants for this award upon self-submission and an application fee. The selection criteria included corporate, public, not-for-profit, union, and "other" plan sponsors, service providers, and retirement plan advisers of all sizes. A panel of judges determine the award recipients. Betterment for Business LLC has no affiliation with Pensions & Investments. Such award or recognition does not evaluate nor is indicative of, amongst other things, investment performance of client portfolios. No guarantee by Betterment for Business LLC or its affiliates is being made in its receipt of this recognition.

SOURCE Betterment