Envestnet | Tamarac acquires Schwab’s PortfolioCenter

Envestnet | Tamarac announced on 21st February that Tamarac will acquire PortfolioCenter from Schwab. This product is aimed at RIAs as portfolio management and reporting technology.

The decision to sell RIA-oriented technology to a competitor, according to Ryan W. Neal from InvestmentNews, reflects Schwab’s strategic realignment. Schwab is now “focusing more on partnering with third-party vendors while also rolling out PortfolioConnect, a next-generation portfolio manager with deep integrations into Schwab’s platform.”

This move makes sense both for Schwab and Envestnet as explained by Gavin Spitzner:

“Given the deep interconnectedness of Tamarac and PortfolioCenter and Schwab’s RIA network’s increasing usage of Tamarac and the diminishing utilization of PortfolioCenter independently, this deal has been rumored for a while and it makes sense for Envestnet, Schwab and their mutual clients”

In January 2019, Envestnet | Yodlee acquired a U.S.-based company, and a forerunner in conversational banking, Abe AI. This strategic move was made to solidify Yoodle’s position in the conversational interfaces, and ultimately “to boost advisors’ and financial firms’ conversational artificial intelligence abilities, so they can interact with clients via Amazon Alexa and Google Assistant, for instance.”