AdvicePay Company Profile

Background

AdvicePay, established in 2016 by financial planning experts Michael Kitces and Alan Moore, is a leading platform dedicated to managing billing, payments, and compliance for fee-for-service financial planning. The company's mission is to empower financial professionals to diversify their practices and add new revenue streams through efficient fee-for-service planning. Since its public launch in 2018, AdvicePay has become a cornerstone in the financial planning industry, serving over 11,000 advisors and processing more than 1.5 million transactions totaling over $770 million in financial planning fees from over 245,000 clients.

Key Strategic Focus

AdvicePay's strategic focus centers on providing a comprehensive solution that enables broker-dealers, Registered Investment Advisers (RIAs), and independent advisors to streamline operations and drive sustainable growth through fee-for-service financial planning. The platform offers features such as eSignature, billing and payments, engagement workflows, approvals, and deliverables tracking, all designed to support the fee-for-service model. By integrating with popular tools like RedTail, Wealthbox, and Salesforce, AdvicePay ensures seamless incorporation into existing tech stacks, enhancing efficiency and compliance for financial professionals.

Financials and Funding

In November 2017, AdvicePay secured a $500,000 seed funding round led by Goodworks Ventures and Front Street Capital, with additional investments from fellow financial advisors. This capital was utilized to build out the development and customer support teams, enabling the company to expand its payment processing solution to a broader range of financial advisors. Over the past three years, AdvicePay has demonstrated significant growth, achieving a 322% increase in revenue and earning a spot on Inc. Magazine's 'List of 5000 Fastest-Growing Private Companies' for three consecutive years, ranking No. 1,610 in 2024.

Technological Platform and Innovation

AdvicePay distinguishes itself through its proprietary platform tailored specifically for fee-for-service financial planning. Key features include:

Compliant Payment Processing: Enables advisors to accept credit cards and ACH payments for one-time, retainer, or subscription invoices, ensuring compliance with regulatory standards.

Integrated eSignature: Allows for the inclusion of eSign documents with invoices and subscriptions, streamlining client onboarding and agreement processes.

Engagement Workflows: Automates repetitive tasks like recurring billing and tracking plan deliverables, enhancing operational efficiency.

Tech Stack Integration: Seamlessly integrates with industry-favorite tools such as RedTail, Wealthbox, and Salesforce, facilitating smooth adoption into existing workflows.

These innovations position AdvicePay as a comprehensive solution that not only simplifies payment processing but also enhances compliance and operational efficiency for financial advisors.

Leadership Team

AdvicePay's leadership comprises experienced professionals dedicated to advancing the company's mission:

Alan Moore: Co-founder and former CEO, transitioned to Executive Chairman of the Board in 2023 to focus on strategic oversight.

Michael Kitces: Co-founder and Board Member, continues to provide strategic guidance and industry expertise.

Shannon Beck: Head of Sales & Marketing, instrumental in driving the company's growth and market presence.

The company is actively seeking a new CEO to lead its next phase of growth, reflecting its commitment to scaling operations and enhancing its market position.

Leadership Changes

In February 2023, Alan Moore announced his transition from CEO to Executive Chairman of the Board to focus on strategic oversight and support the search for a new CEO. This move aims to bring in dedicated executive talent to drive AdvicePay's ongoing growth, particularly as the platform evolves into a comprehensive enterprise workflow solution.

Competitor Profile

Market Insights and Dynamics

The financial planning industry is experiencing a significant shift towards fee-for-service models, driven by consumer demand for transparent and flexible financial advice. This trend has created a growing market for platforms that facilitate compliant and efficient billing and payment processing for financial advisors.

Competitor Analysis

Key competitors in this space include:

PaySimple: Offers payment processing solutions tailored for service-based businesses, including financial advisors.

Bill.com: Provides cloud-based software that automates back-office financial operations for small and midsize businesses.

Square: Known for its point-of-sale systems, Square also offers invoicing and payment processing services suitable for various industries, including financial services.

While these competitors offer payment processing solutions, AdvicePay's specialization in fee-for-service financial planning, coupled with its compliance-focused features and integrations with industry-specific tools, provides a distinct competitive advantage.

Strategic Collaborations and Partnerships

AdvicePay has established significant collaborations to enhance its platform's capabilities and market reach:

Integration with eMoney: Streamlines workflows for financial advisors by integrating payment processing with financial planning software, facilitating seamless client billing and plan delivery.

Partnerships with Major Broker-Dealers: Nineteen of the 25 largest brokerage firms offer fee-for-service financial planning through AdvicePay, demonstrating the platform's widespread adoption and trust within the industry.

Operational Insights

AdvicePay's strategic focus on fee-for-service financial planning positions it uniquely in the market. By offering a platform that addresses the specific needs of financial advisors, including compliance and integration with existing tools, AdvicePay differentiates itself from general payment processing solutions. This specialization enables the company to effectively serve a growing segment of the financial services industry seeking to diversify revenue streams and enhance client engagement through fee-for-service models.

Strategic Opportunities and Future Directions

Looking ahead, AdvicePay is poised to capitalize on the continued shift towards fee-for-service financial planning. The company's commitment to innovation, as evidenced by its recent brand refresh and ongoing platform enhancements, positions it to meet the evolving needs of financial advisors and their clients. By focusing on expanding its integrations, enhancing user experience, and maintaining compliance excellence, AdvicePay aims to solidify its leadership in the fee-for-service financial planning space.