Facet with Anders Jones | E308

Bringing financial planning to the masses.

On today’s episode of Fintech Impact, Jason is going to talk to Andres Jones, Co-founder, and CEO of Facet. It is a fintech company challenging traditional financial planning models and aims to introduce an advanced form of financial planning to underserviced markets often neglected by the industry. They use a subscription-based approach, focusing on a broader definition of financial planning beyond retirement. The company emerged in response to industry challenges, notably the failure of the DOL fiduciary rule.

Episode Highlights:

  • 01:19: Anders provides a snapshot of Facet's inception in 2016, emphasizing the disruptive intent to reshape financial planning with a subscription-based model.

  • 03:47: Anders breaks down the subscription model approach, unveiling the identification of Ideal Customer Profiles (ICPs) and the mapping of 44 life milestones. This strategy tailors financial planning to diverse needs.

  • 04:34: Anders illustrates the depth of Facet's service, sharing anecdotes about clients seeking assistance with major life events like having a baby.

  • 06:30: Jason shifts the conversation towards industry dynamics, discussing the resistance to regulatory changes and the need for innovation in cost reduction. He also draws on cross-border familiarity, highlighting industry misalignments and the importance of doing the right thing for clients.

  • 08:08: Anders expands on Facet's client-centric approach, emphasizing assistance across different life milestones, showcasing the company's comprehensive financial planning perspective.

  • 09:55: Jason emphasizes the uniqueness of individuals, stating that everyone is a combination of shared experiences, and financial planning should address diverse needs.

  • 10:28: Anders discusses the facet philosophy, highlighting principles like maintaining a six-month emergency fund before investing, emphasizing the right order of operations.

  • 11:11: Anders details the technology-driven automation of each step in the financial planning process, prioritizing advisors' time spent with clients. He also explains the creation of a customer journey with 44 life milestones, shaping the financial planning process based on diverse needs.

  • 13:20: Anders discusses metrics like member per planner ratio, client satisfaction, retention, and the importance of activation—ensuring clients act on provided advice.

  • 15:12: Anders elaborates on building Facet's tech in-house, emphasizing the need for ownership to align technology with their unique financial planning process. He also explains the absence of a mobile app and details the robust advisor-side platform, including workflow automation, data analysis, and evolving AI.

  • 17:24: Jason inquiries about the onboarding experience at Facet, prompting Anders to explain the two-call process led by a separate membership team to understand the client's needs and introduce Facet's services.

  • 19:25: Anders explains that planners are assigned with some personalization based on factors like time zones and special requests, emphasizing a consistent experience across Facet.

  • 20:33: Anders highlights the focus on understanding the emotional aspects and the "why" behind a client's financial goals, aiming for a personalized and meaningful planning approach.

  • 21:34: Jason reflects on the misalignment of incentives in the financial industry and the need for a culture that prioritizes helping clients self-actualize rather than focusing solely on compensation models.

  • 24:04: Jason expresses the idea that sometimes clients outgrow their advisors due to the increasing complexity of their lives. He emphasizes the importance of recognizing when a client's needs surpass the advisor's skill set and suggests that it's okay to acknowledge this and refer them to someone more suitable.

  • 26:32: Jason discusses the challenges of serving clients with lower income or assets, and Anders mentions his optimism about technology advancements enabling lower-cost solutions in the future.

  • 28:20: Anders expresses his wish for the industry to adopt subscription fees as the default way of charging for financial advice, believing it would make financial planning more accessible.

  • 30:10: Anders highlights two motivating factors: Facet's mission-driven culture, where team members share stories about changing members' lives, and having an incredible team that makes the hard work of building a business enjoyable.

Key Points: 

  1. Facet operates with a strong mission-oriented culture, emphasizing the team's commitment to changing financial planning for the better.

  2. The discussion explores challenges when clients outgrow advisors and the potential for AI to drive down costs, making financial planning more accessible.

  3. Despite virtual work success, Anders expresses a preference for in-person collaboration, especially in creative aspects of the business.

Tweetable Quotes:

  • "Financial planning, when done well, looks at everything in your life that money touches, not just what your money is doing and what it'll be doing in 40 years." - Anders

  • "The AUM-based business model for retail clients does not make sense. It does not align the cost that you're paying with the value that you're receiving." - Anders

  • "Our ideal member is someone in their late 20s to early 40s, figuring out how to 'adult' and wanting help, or pre-retirees focused on the next 5 to 10 years." - Anders

Resource Mentioned:

Fintech ImpactJason PereiraFintech