AdvicePay, a payment processing platform created specifically for financial advisers, has launched services in the US.
AdvicePay was developed by financial planning entrepreneurs Alan Moore and Michael Kitces, who also co-founded the XY Planning Network.
The platform was launched in beta mode in 2017 to XY Planning Network’s members. In November last year, it raised $500,000 of seed funding.
The new platform enables advisers to bill and receive financial planning fees directly from a client’s credit card or bank account through automated clearinghouse, while maintaining client privacy through data encryption.
The solution also offers users a portal to directly enter their payment information, review invoices and payments, as well as confirm billing changes in order to help them meet RIA custody norms.
Kitces said: “As financial planning looks to expand its reach beyond its traditional affluent clientele that pay for services via assets under management (AUM), and towards a fee-for-service model to reach new markets, advisers need a payment processor that can facilitate getting paid financial planning fees in a compliant manner.
“In addition, advisors in the past have struggled to compete with the AUM model when using retainer fees, due to the lack of payment automation and the hassle of asking clients to write paper checks. AdvicePay provides an easy alternative solution,” Kitces added.