NEW YORK (TheStreet) -- The financial services industry is being turned on its head by "FinTech" companies, those that use technology to make financial systems more efficient. The end result will benefit consumers, according to Alexa von Tobel, founder and CEO of LearnVest.com, a Web-based financial planning company.
von Tobel said her company has filled a void for consumers, by providing low-cost financial planning without selling any financial products. "We're seeing a complete disruption," said von Tobel. "So what we did was say every single human in America deserves access to a financial plan where we don't sell you anything. That alone was novel. The entire industry before used to give you a financial plan in order to sell you a product."
von Tobel said while many wealth management companies target high income clients, LearnVest.com pursued clients with more modest means that had been underserved by other financial companies. "Most clients who didn't have a net worth of above $500,000 were completely left in the dust," said von Tobel. "In many ways financial planning was a luxury product, and that's crazy."
LearnVest.com charges $299 to set up a financial plan, followed by a $19 monthly fee to work with a planner on an onging basis. The company has now branched out into the corporate market, offering a low-cost financial planning option for companies to offer to their employees. LearnVest, which is regulated, was recently acquired by Northwestern Mutual but continues to operate independently.
