Yodlee’s expertise and data aggregation solutions will complement Envestnet’s wealth management portfolio, advisor network and data analytics solutions. The combination will create a platform will be able to enhance the financial lives of people around the globe.
“The acquisition of Yodlee is a watershed moment in the financial technology industry. We have long admired Yodlee’s innovative solutions and are excited to bring the companies together,” Envestnet CEO, Jud Bergman, said in the press release.
“The union of these two pioneers will enable investors and the advisors who serve them to access and make better sense out of their disparate and complicated financial data. We believe this represents a quantum leap in accuracy and knowledge that will deliver better outcomes to improve the financial health of investors,” he stated.
Opened in California in 1999, Yodlee became a well-known company that enables financial institutions to aggregate consumer financial information. The platform allows users to see their investment portfolio, credit card statements, travel reward accounts, bank statements, emails, etc.
With over 45 million users, the company serves more than 150 financial institutions and offers its financial applications for the majority of banks in the US. Within the last few years, Yodlee has been working on developing a smaller financial data verification platform, named Yodlee Interactive. The program allows users to avoid the process of account verification, which can take weeks to prove the ownership of the account.
“Yodlee is the preeminent name for data in financial services today. The core of every financial transaction and every financial decision is data. The Yodlee platform brings together client permissioned financial data and analytics in unique ways to power personalized and dynamic financial apps and generate business insights,” said President of Envestnet, Bill Crager.
“Financial institutions, advisors and investment managers using the Envestnet platform will be able to provide a more interactive and informative digital advice experience for clients, powered by an expanding array of data mining and predictive analytical tools.”
According to Yodlee, the number of company’s paid users amounts to 20 million people. It obtained profits of $98.6 million for the year ended June 30, 2015.
The company was recently criticized by the media for sharing information about consumer transactions with financial institutions. The Wall Street Journal stated Yodlee sells data to research firms and investors, but the company denied that saying such data is completely anonymous.