NEW YORK, Jan. 22, 2018 /PRNewswire/ -- AdvicePay, the first compliant payment processing solution built specifically for financial advisors offering fee-for-service financial planning, launches today and is available nationwide. AdvicePay gives advisors the ability to bill and receive financial planning fees directly from a client's credit card or bank account (via ACH). To ensure compliance with RIA custody regulations, AdvicePay also provides a portal for clients to directly enter their payment information, review invoices and payments, and confirm any billing changes.
"As financial planning looks to expand its reach beyond its traditional affluent clientele that pay for services via assets under management (AUM), and towards a fee-for-service model to reach new markets, advisors need a payment processor that can facilitate getting paid financial planning fees in a compliant manner," said co-founder Michael Kitces. "In addition, advisors in the past have struggled to compete with the AUM model when using retainer fees, due to the lack of payment automation and the hassle of asking clients to write paper checks. AdvicePay provides an easy alternative solution."
To protect client data, AdvicePay financial information is fully encrypted, and was developed through the founders' direct experience in providing compliance consulting for retainer-based financial advisors registering across a wide range of state regulators. AdvicePay launched in beta in 2017 to members of the XY Planning Network, the leading organization of over 560 fee-only financial advisors who specialize in working with Gen X and Gen Y clients for a monthly retainer fee, co-founded by Kitces and Alan Moore. Currently, AdvicePay has over 280 advisors live on the platform.
"Fee-for-service financial planners across the country face unique regulatory challenges due to rules that can vary from state to state; we developed this solution with their specific needs fully in mind," said co-founder Alan Moore. "AdvicePay is meant to be simple and easy-to-use, and the back-end handles the regulatory complexities to ensure compliance."
As the industry's shift towards various fee-only and fee-for-service financial planning models dramatically expands consumer access to financial planning services, AdvicePay is intended to make it easier for advisors to bill, and for clients to pay. By streamlining internal processes, the platform makes it cheaper and simpler for advisors to service more clients. According to an analysis from Kitces.com, a fee-for-service model with AdvicePay at its center could dramatically increase the segment of consumers with access to financial advisors, from under 20% to over 50% of the total marketplace, by eliminating the need for consumers to have liquid assets to manage in order to work with an advisor.
"As an investor, I was drawn to the straightforward value proposition for the advisor-user as well as the expansive market opportunity for financial planning and conflict-free user paid advice," says investor and user Yves-Marc Courtines. "As an advisor, having a simple yet robust all-in-one system for my invoicing, billing and regulatory needs allows me to focus on what I do best - defeating complexity to improve client outcomes."
AdvicePay is the first and only payment processing platform built for specifically for fee-for-service financial planners. We aim to make financial planning services available to consumers without high investment balances by building a compliant payment solution to process financial planning fees. To learn more or schedule a demo, visit www.advicepay.com.