Betterment Holdings Inc.

United States · owned by Independent (United States) · betterment.com · 50 vendors

Betterment is a US-based robo-advisor and financial technology company that offers automated investing, retirement accounts (IRAs, 401(k)s), high-yield cash accounts, and checking services. It combines algorithm-driven portfolio management with expert financial advice to help individuals grow and manage their wealth. With over $65 billion in assets under management and more than 1 million customers, it also provides 401(k) solutions for businesses and custodial services for independent RIAs.

Resilience scores

Disruption prediction

Betterment Holdings Inc. has an estimated 17% probability of disruption in the next 6 months.

30 of Betterment Holdings Inc.'s 50 vendors monitored for disruptions.

Technology vendors

Insights

Last updated 2026-08-11 · revision 9

50 direct vendors, 383 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Migration Readiness: 7/10

Assessed by AI based on technology stack characteristics (cloud-native vs legacy, containerization, microservices), regulatory environment, data residency requirements, financial stability, and vendor lock-in risks. The score ranges from 0-10, where higher scores indicate better readiness for technology migration.

Betterment exhibits strong technical readiness for migration, largely due to its highly modern, cloud-native, and containerized tech stack. The extensive use of Amazon Web Services (AWS), Kubernetes, Docker, and Terraform provides a flexible and portable infrastructure, making re-platforming or cloud-to-cloud migrations technically feasible and efficient. The company's consistent financial growth also ensures it has the resources to fund complex migration initiatives. Data residency requirements are clearly defined for US operations, which simplifies planning for data placement within the US regulatory framework. However, the regulatory environment presents significant challenges to migration. The 'Assessment Required' status for GDPR, SOC2, ISO 27001, and ISAE 3000 means any migration would necessitate a meticulous review and adherence to these compliance requirements, potentially adding substantial complexity, cost, and time. While compliant with core US financial regulations (SEC, FINRA/SIPC), the ongoing 'Medium' risk level due to their complexity and scrutiny means these must be carefully managed during any transition. The high number of 'Total Services: 130' implies a complex ecosystem of integrations and dependencies, which could make a large-scale migration intricate and prone to unforeseen issues. Furthermore, the reliance on 'Apex Clearing' for core brokerage and clearing infrastructure indicates a potential for significant vendor lock-in in critical financial operations. This dependency could pose a substantial hurdle for certain types of migrations, particularly those involving changes to core clearing or custody providers. The overall 'Vendor Lock-in Risk' is unknown, but this specific critical vendor relationship is a notable consideration.

Compliance

13 in-scope frameworks identified; showing 3.

Gramm-Leach-Bliley Act — Compliant

GLBA requires financial institutions to explain their information-sharing practices and protect sensitive customer data. Betterment's privacy policy explicitly references GLBA as the primary federal law governing its data collection practices, and the policy includes a GLBA-compliant privacy notice with required disclosures about information sharing. Risk is Medium because while the company appears compliant, the complexity of its data-sharing arrangements (Socure, Plaid, Stripe, Apex, MX Technologies, Ascensus, Capitalize) requires ongoing monitoring to ensure all third-party agreements meet GLBA safeguards requirements.

Evidence: https://www.betterment.com/legal/privacy-policy, https://www.betterment.com/legal

SOC 2 (source) — Assessment Required

SOC 2 compliance is critically important for Betterment given its profile: (1) It is a cloud-native, technology-driven financial services platform managing $70B+ in AUM for 1M+ customers; (2) It processes highly sensitive financial data including SSNs, bank account numbers, investment portfolios, and biometric data (facial images via Socure); (3) Its B2B offerings (Betterment for Advisors, Betterment at Work) serve institutional clients (RIAs, employers) who typically require SOC 2 reports as part of vendor due diligence; (4) The absence of a publicly disclosed SOC 2 report is a significant gap for a company of this scale and sensitivity. Risk is High because institutional clients and enterprise customers in the financial sector routinely require SOC 2 Type II reports, and the lack of public evidence of such a report may impede B2B sales and create reputational risk.

Evidence: https://www.betterment.com/legal/privacy-policy, https://www.betterment.com/advisors, https://www.betterment.com/work, https://www.betterment.com/about

SIPC — Compliant

SIPC membership is a mandatory requirement for registered broker-dealers. Betterment Securities is confirmed as a SIPC member, providing customer account protection up to $500,000 (including $250,000 for cash claims) in the event of broker-dealer failure. This is a straightforward compliance requirement with clear evidence of compliance. Risk is Low as SIPC membership is confirmed and publicly disclosed.

Evidence: https://www.betterment.com, https://www.betterment.com/legal, https://www.sipc.org/

Financials

Three-year financials

Financial Resilience Score: 6/10

Betterment Holdings Inc. is a scaled private fintech with strong operating momentum, including over US$70B in AUM and more than 1 million customers as of 2025-2026. AUM has roughly doubled from ~US$33B in 2022 to >US$70B in 2026, representing compound growth of ~20% per year, aided by acquisitions of Marcus Invest (2024), Ellevest's automated-investing business (Feb 2025), and Rowboat Advisors (May 2025). The company benefits from a diversified revenue mix spanning advisory fees, cash-sweep spread income, 401(k) administration, and RIA custody services. However, financial resilience cannot be fully verified because Betterment is privately held and does not disclose audited consolidated financial statements (revenue, EBIT, equity). Industry analysts estimate annual revenue in the low-hundreds-of-millions USD range, and CEO commentary suggests the company is approaching or has reached profitability, but this remains unaudited. The company has raised ~US$435M in total funding, with a reported ~US$1.3B valuation in Sep 2021. Key risks include interest-rate sensitivity (cash-sweep spread revenue would compress if Fed cuts rates), intense competitive pressure from Vanguard, Schwab, Fidelity, and Wealthfront, a US$9M SEC settlement in April 2023 over tax-loss-harvesting disclosures, reliance on third parties (Apex Clearing, nbkc bank), and concentrated single-country US exposure. The private-company opacity is the primary constraint on assessing true resilience.

Key strengths: AUM >US$70B as of May 2026, doubled from ~US$33B in 2022, >1 million customers as of August 2025, Diversified revenue mix: advisory fees, cash-sweep spread, 401(k), RIA custody, Strong VC backing with ~US$435M raised, ~US$1.3B valuation (2021), Product expansion via acquisitions (Marcus Invest, Ellevest, Rowboat Advisors), SEC-registered adviser and broker-dealer with regulatory moat, Scale-driven operating leverage on fixed technology cost base

Risk factors: Private-company opacity: no audited public financials available, Interest-rate sensitivity of cash-sweep spread revenue, Competitive pressure from Vanguard, Schwab, Fidelity, Wealthfront, US$9M SEC settlement in April 2023 over tax-loss-harvesting disclosures, Reliance on third parties (Apex Clearing, nbkc bank, program banks), Concentrated single-country (US) exposure, Historically not profitable on GAAP basis (per past CEO commentary)

Revenue by geography

Workforce by country

Signed-in users can see whether their own company is exposed to this vendor's disruption, plus the full sub-vendor list and country breakdowns, every in-scope compliance framework plus gaps and next steps, and alerts when any of it changes.

View the full interactive report