Prumentum Group is a new Wealth Management startup which has entered the market with the unique value proposition. It is a new addition to the rising fintech companies. It is looking to combine the technology of a robo advisor with a human touch skilled in investment advisory. To accomplish this the company has built a tech platform, enabling itself to raise $25 million in funding. Apart from that, the company has also acquired a minority stake in a financial advisory firm.
The team behind this idea in the company has been working on a dual-track strategy for over past 18 months. The idea behind this endeavour is to use a mix of technology with that of human advice so that a larger population can be covered and not just financial advisory companies.
The company has already been working on a tech platform called BrightPlan. It is been made to compete with the likes of the Betterment and Wealthfront in the robo-advisory game. The people behind this platform were the previous employees of Silicon Valley firms like Cisco and Salesforce.
Prumentum has acquired a small stake in Plancorp, it is a registered advisory firm which has $ 3.6 billion under its Asset Management. The company serves high-net-worth individuals, institutions, and families. This advisory firm has decades of experience in the diverse category of clients helping them to reach their financial goals.
The co-founder of Prumentum and its CEO Martin De Beer said that the company had taken an initial 40% stake in the investment advisory firm, with plans to purchase up to 100% stake through equity exchange later.
With the takeover, the company is now confident that it will be able to help more Wealth Management clients than what it used to do in past. Moreover, according to the company, it is the right step as it will enable a wider reach to prospective clients because of the in-depth knowledge that Plancorp has up its sleeves.
Prumentum has come to the market of financial advisory with a hybrid strategy, it serves two very important purposes which make it unique. It is a mix of technology with the humble touch of human financial advice.
The company is hopeful, that its new product will be a success in the market and the experience of all the stakeholders involved in this project will take it to success in the long run.