Today, I am excited to announce Canvas’s investment in Savvy Wealth. Wealth management businesses have always been interesting to me, as they represent one of the largest asset classes in the US economy, and a market where technology can both improve investment returns and minimize operational costs. Over the years I’ve made several investments in the category, including Future Advisor, a pioneering low cost “set it and forget it” robo-advisor acquired by Blackrock, and Check, acquired by Intuit, which provides users with a 360 degree view of their personal financials across vendors. Whereas Future Advisor and Check were targeted at self-directed consumers, my colleagues, Justin Pirzadeh, Xan Wood, and I invested in Savvy to automate and add value to wealth advisors, which are often buried in onboarding, reporting and compliance paperwork rather than advising. Tech can be hard to leverage in this category as these are services based businesses, and scalability often means more bodies.

Then in the last few years, 2 big things happened. First Covid forced many manual processes in finance, like wet signature requirements, to be moved to digital experiences. And second, the current wave of AI has created a new infrastructure layer that can supercharge services businesses into more efficient and profitable business models.

Savvy is taking advantage of these changes by building a platform around both advisors and their customers.

A Massive Opportunity in the RIA Market

The Registered Investment Advisor (RIA) market is experiencing tremendous growth. According to a study by Cerulli Associates, RIA assets under management are projected to reach $21 trillion by 2025. This surge is driven by a combination of factors, including:

• Shifting demographics: The wealth of millennials and Gen Z is on the rise. A report by Fidelity Investments estimates that the largest wealth transfer in history is underway, with millennials set to inherit $68 trillion over the next few decades. These younger generations often seek a different approach to wealth management than traditional firms offer.
• Demand for technology-driven solutions: Investors increasingly value user-friendly platforms and easy access to financial information. Savvy caters to this demand by providing a modern and accessible wealth management experience.

Building for Advisors

Savvy's unique value proposition extends beyond just attracting end-user clients. The platform is designed to empower financial advisors that are up and coming in their careers. Wirehouse firms and larger RIAs built bespoke products for these users on legacy tech but never a full holistic solution. Savvy is updating the stack by doing the following:

• Streamlined Operations: Traditional RIA platforms often burden advisors with cumbersome back-office tasks and inefficient workflows. Savvy's platform automates many of these tasks, such as account onboarding, document management, and performance reporting. This frees up advisors' time to focus on building relationships with clients and providing personalized financial advice.‍
• AI-powered Client Management: Current RIA platforms often lack robust client relationship management (CRM) tools. Savvy's platform utilizes AI to provide advisors with a comprehensive CRM system. This allows for better client segmentation, targeted communication, and ultimately, stronger client relationships.‍
• Marketing and Client Acquisition: Many independent advisors struggle with attracting new clients. Savvy provides advisors with marketing automation tools and access to a network of potential clients. This empowers advisors to grow their practices more efficiently.