A new data-driven referral company has been created to more precisely match investors with financial advisors, executives of the company, known as Datalign Advisory, announced this week.

Unlike most services that provide investors with potential advisors, Datalign, which was launched Wednesday, gathers more information from a potential client and matches him or her with a specific advisor tailored to meet the person’s needs, Andrew Johnson, co-founder and chief operating officer for Datalign, said in an interview.

Datalign uses the prospective client’s income, required services, time to retirement and previous experience with financial advisors to find an advisor best suited to that person’s needs, he said.

“We wanted to get to a granular level rather than just make referrals based on assets and geography,” Johnson said. “This is an exciting time to be in the financial industry. We are on the verge of the greatest transfer of wealth from one generation to another in history with $72 trillion passing hands. Most of the inheritors will not use their family’s advisor. We have crypto investing and the growth in importance of ESG. Financial systems are becoming more complicated.”

Johnson said it is the perfect time to be able to offer a referral service that delves into the detailed needs of the prospective client.

Datalign was created at Cogo Labs, a business incubator based in Cambridge, Mass., which launched internet companies including EverQuote, CourseAdvisor and Autotegrity. Datalign is registered with the SEC as an RIA. The firm also is working with a number of publishers who have audiences that reach individuals who might be interested in hiring a financial advisor, the company said. The network of publishers allows Datalign to reach prospects across a range of demographics with a free tool that collects and organizes information about a client's current financial situation, needs and goals.

"Selecting a financial advisor is a big decision; not exactly one that should be sourced on Yelp," Johnson said in a statement. “With more than 50,000 independent advisor representatives in the country, it's a daunting task. It isn't just about finding a reputable advisor who knows the industry, it's about finding someone whose expertise complements a client’s. We make this process easier and more efficient for clients and advisors alike."

Current referral systems often result in prospective clients being bombarded with emails and calls once they put out feelers, Johnson said. It also means advisors feel compelled to jump on the referral names as quickly as possible with little time to examine the person’s needs, he added.

RIAs who are approved to join Datalign Advisory's platform pay for the service per referral. Potential clients are given one name of an advisor who matches their needs.

“Often, advisor referral services create an unpleasant experience for both sides. When leads are generated based solely on the size of a portfolio, advisors end up with prospects who aren’t a good fit, and individuals end up getting hounded by multiple firms.” Rob Fisher, Datalign Advisory president, said in a statement. “Datalign’s prioritization of connecting people with the right financial advice means advisors spend less time chasing the wrong prospects.”

“We do one-to-one matching with the goal of creating a better experience for both end users,” Johnson said.