Kitces, Moore Turn To Advisors To Crowdfund Enterprise Advisor Payment Patform

Michael Kitces and Alan Moore knew that if they built a tool for advisors wishing to charge financial planning fees, many fee-only advisors would flock to use it – but would advisors fund AdvicePay Enterprise, an expansion designed for enterprise firms and hybrid advisors?

With the launch of AdvicePay last year, the two XY Planning Network founders Michael Kitces and Alan Moore had created a simple solution for charging planning fees. Yet larger enterprise firms and hybrid advisors expressed a desire for tools that would allow them to charge clients hourly, retainer and subscription fees as well, but needed a higher level of technical and compliance support than was already available on AdvicePay’s payment processing platform.

“As soon as we launched, we got inquiries from large enterprises, broker-dealers and RIAs, who told us that they needed software like AdvicePay but they had additional needs,” said Kitces.

Rather than go the traditional route of raising private capital to fund an expansion of AdvicePay’s staff and capability, Moore and Kitces appealed to their fellow financial advisors to crowdfund a more robust version of the platform for hybrids and larger enterprises – and advisors answered the call to the tune of $2 million in less than 2 months.

Now, AdvicePay is announcing the launch of AdvicePay Enterprise after four months of development.

“We needed to raise capital to build the additional features on top of the original AdvicePay system,” said Kitces.

from FA News https://www.fa-mag.com/news/kitces–moore-turn-to-advisors-to-crowdfund-enterprise-advisor-payment-patform-42958.html