Product Overview of NextCapital
NextCapital offers a comprehensive and highly configurable digital advice platform designed to provide personalized financial planning, advice, and portfolio management services to a broad range of investors.
What the Product Does
NextCapital’s digital advice solution is integrated with various financial institutions to deliver tailored financial planning and managed accounts to individual investors. This platform supports multiple account types, including 401(k), IRA, and taxable brokerage accounts. It is built around the investor, offering a holistic service that encompasses planning, advice, and portfolio management.
Key Features and Functionality
Integrated Account Aggregation and Analytics
The platform provides integrated account aggregation, allowing for a unified view of all the investor’s financial accounts. This is complemented by advanced analytics, which help in making informed investment decisions.
Customizable Advice Methodology
NextCapital’s solution is highly configurable, enabling partners to customize the advice methodology and fiduciary roles according to their specific needs. This flexibility allows financial institutions to align the platform with their own investment strategies and compliance requirements.
Portfolio Management
The platform includes robust portfolio management capabilities, which help in creating and managing model portfolios. It also supports the execution of portfolio transactions and provides tools for risk management, such as hedging interest rate or currency risk.
Secure Authentication and Access Management
NextCapital utilizes advanced security measures, including single sign-on (SSO) and multi-factor authentication (MFA), to ensure seamless and secure authentication for users transitioning between partner platforms and the NextCapital platform. This solution complies with SEC requirements and partner agreements to protect sensitive financial data.
Scalability
The platform is designed to be scalable, capable of handling a large number of users. NextCapital currently analyzes over $22 billion in client assets and plans to scale its authentication process to support up to 500,000 users.
Open-Architecture
NextCapital operates on an open-architecture platform, allowing it to integrate with a variety of software and technology tools. This openness enables the platform to be highly adaptable and to incorporate both proprietary and third-party technologies, enhancing its functionality and the services it offers to investors.
Comprehensive Financial Planning
The platform offers goal and risk-based financial planning services, including retirement plan consulting and other sophisticated investment solutions. It provides access to due diligence reports, fee analysis, and other investment-related services, making it a comprehensive tool for financial planning and wealth management.
In summary, NextCapital’s digital advice platform is a powerful tool for financial institutions and investors, offering a range of features that enhance financial planning, portfolio management, and security, all while providing a scalable and customizable solution.