Vestwell with Aaron Schumm | E337

Powering individual savings programs.

In this episode of Fintech Impact, host Jason Pereira interviews Aaron Schumm, Founder and CEO of Vestwell, a revolutionary platform designed to empower employee savings programs across America. Aaron shares insights into how Vestwell is reshaping savings through workplace and direct-to-individual programs, emphasizing tax-preferred savings vehicles. The conversation delves into the pain points that led to the creation of Vestwell, its innovative approach to simplifying savings, and the impact it hopes to have on the financial well-being of millions.

Episode Highlights:

  • 00:01: Jason introduces the podcast and welcomes Aaron Shumm, discussing Vestwell's mission to power employee savings programs through technology, making savings accessible and simple for employees across America.

  • 00:25: Aaron discusses Vestwell as a backend powerhouse that enables savings programs such as 401k's and IRAs through channel partners, focusing on tax-preferred vehicles and emphasizing the importance of making savings accessible to all.

  • 01:05: Highlighting the complexities and challenges faced with existing 401k programs, Aaron shares his personal experiences that led to the founding of Vest. He mentions how the pain points encountered in his previous venture fueled his determination to streamline and simplify the savings process.

  • 02:08: Aaron talks about the organic growth of Vestwell to include a wide array of saving programs, driven by a desire to solve broader issues in the savings industry. This part of the discussion illuminates Vestwell's holistic approach in addressing savings needs beyond retirement.

  • 02:46: The conversation shifts to the initial problem Vestwell aimed to solve: extending savings opportunities to underserved segments of the workforce, primarily small and mid-size business employees. Aaron highlights the significant savings gap and the potential for platforms like Vestwell to make a substantial impact.

  • 04:15: Aaron elaborates on Vestwell's model of distribution through channel partners, particularly financial advisors, and how it aims to seamlessly integrate savings programs into existing financial ecosystems to enhance scalability and reach.

  • 06:21: The discussion offers an inside look into how businesses can initiate savings programs through Vestwell, detailing the advisor-driven proposal process, implementation, and the digital automation of enrollment and management.

  • 08:23: Aaron paints a picture of the end-user journey, emphasizing the personalized and engaging digital interface that encourages participation and informed savings decisions.

  • 10:19: Reflecting on the development journey of Vestwell, Aaron shares insights into the unexpected challenges encountered, particularly the limitations of legacy financial and payroll systems, which necessitated the development of their in-house solution.

  • 13:39: The conversation turns to the reception of Vestwell's platform among users and partners, highlighting the balance between innovation and the challenges of shifting away from legacy providers and systems.

  • 18:18: Aaron shares his long-term vision for Vestwell, emphasizing the untapped potential in the savings space and the importance of collaborative efforts to drive meaningful change and financial wellness for millions.

Key Takeaways:

  • Vestwell aims to revolutionize the way savings programs are integrated and experienced in the workplace, addressing significant gaps in the market and making savings accessible to a broader audience.

  • The company's growth and expansion signify a broader mission to tackle various facets of financial wellness, from retirement to education and healthcare savings.

  • Overcoming legacy systems and redesigning the user experience were pivotal challenges that shaped Vestwell's trajectory, leading to an innovative platform that prioritizes simplicity and accessibility.

  • The feedback from both implanters of the program and end-users underscores the transformative potential of Vestwell, highlighting the ongoing journey towards enhancing financial wellness and security.

Tweetable Quotes:

  • "In our industry, simplifying complex processes is not just a luxury; it's a necessity. Vestwell aims to make savings straightforward and accessible for everyone." - Aaron Schumm

  • "The journey from concept to execution in fintech is filled with unexpected challenges, but overcoming these obstacles paves the way for meaningful innovation." - Aaron Schumm

  • "By focusing on the user experience, we're not just building a platform; we're fostering a culture of savings and financial wellness." - Aaron Schumm

Resources Mentioned:

Fintech ImpactJason PereiraFintech