Founder Spotlight: Aaron Schumm and Vestwell
At Duke Capital Partners, we are committed to supporting innovative companies that are transforming industries, and Vestwell stands out as a remarkable example. Founded in 2016 by Aaron Schumm, a proud Duke alum who earned his MBA from Fuqua in 2007, Vestwell has quickly emerged as a leader in the savings and investment landscape. This New York City-based fintech company is revolutionizing access to essential financial wellness programs, aiming to close the American savings gap.
With a background in finance and a deep understanding of the fintech space, Aaron identified a critical gap in the market: the need for a more flexible, cost-effective, and user-friendly solution for savings. Vestwell was born out of this vision, offering a cloud-based platform that unifies various savings programs, including retirement plans like 401(k) and 403(b), as well as other individual savings programs IRAs, 529 education, ABLE disability savings, and more. Today, Vestwell supports over 350,000 businesses and well over a million active savers across all 50 states. Duke Capital Partners is proud to support Duke founders like Aaron and Vestwell since the company’s earliest fundraising rounds through its most recent valuation at $1 billion.
The company’s impact has been widely recognized, with accolades including being named to the 2024 Fintech Innovation 50, being awarded as one of the World’s Top FinTech Companies 2024 by CNBC, and Aaron Schumm being honored as a winner for EY’s Entrepreneur Of The Year® 2024. Vestwell was also recognized on the Inc. 5000 list each of the last three years. In this Spotlight, Aaron shares his insights into the key innovations that have propelled Vestwell forward, the challenges they’ve faced, and his vision for the future of savings and investment.
Vestwell is known for its innovative approach to reshaping the savings industry. Could you highlight key innovations that have transformed the savings and investment landscape?
“The challenge has been that most of the industry is running on technology that’s about as old as the industry itself. We’ve really thought about how people engage and save, trying to meet them where they are by providing a modern interface and infrastructure. By doing this, we create inclusive access to savings, regardless of who you are or where you are.”
How has the integration of new technologies at Vestwell impacted your service offerings?
“We rolled out an AI-driven customer service that answers 93% of questions on the first touch, without needing human intervention. This has huge benefits, not only improving the user experience but also driving down the cost of service. Not every time should you take $100 from your paycheck and put it into a 401(k). Sometimes it should go into an emergency savings vehicle or to a family member in need. Our platform helps users make these decisions.”
As a startup founder and CEO, how do you foster a culture of innovation at Vestwell?
“I was very intentional about not hiring people who only came from the savings industry. I wanted people who understood enterprise technology and could bring fresh perspectives. This approach has helped us think creatively and move beyond traditional methods.”
What are some of the biggest challenges Vestwell has faced, and how did you overcome them?
“We had to set out a two-year project to rebuild our entire platform. It was hard, took a ton of focus, but the team crushed it. We successfully executed it ahead of schedule, reshaping our entire business overnight. Many people found our business fascinating but didn’t understand it. It was tough when other companies were raising huge sums with less substance. But our continued success eventually attracted the right investors.”
How have strategic partnerships contributed to Vestwell’s growth?
“Investors like DCP provide more than financial backing; they offer operational support, industry connections, and strategic guidance. Partnerships with entities like BNY Mellon and JPMorgan have been crucial in expanding our reach.”
What are your future goals for Vestwell?
“Our goal is to solve the savings gap, and I believe we have the right foundation to do that. We aim to expand our offerings and integrate AI-driven personalized financial planning. Ultimately, I want Vestwell to be the backbone infrastructure for the savings industry for the next 20, 30, 40 years. We see opportunities globally and are considering how our platform can be adapted to different markets. It’s an endless opportunity to reshape the savings industry.”
What advice do you have for aspiring entrepreneurs?
“Build a sustainable business that has a positive impact. Be passionate about what you do, stay persistent, and avoid ego-driven ventures. It’s important to create something meaningful that can stand the test of time.”