Envestnet CEO to Step Down amid Cost Pressures

Envestnet intends to appoint a new CEO in 2024, as the financial tech firm faces pressure to from an activist investor to cut costs. The fintech’s revenue growth prospects are also limited by the fact that registered investment advisors are especially fee sensitive, so it’s difficult to generate substantial fee income from them unless they are also using Envestnet’s portfolio consulting services, said Pat Newcomb, a relationship manager at FUSE Research.

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Article published on January 9, 2024