Tag: Honest Dollar

Posted on May 21, 2020

Motif Investing, a fintech firm that offers brokerage and robo-advisor services, has announced that it is ceasing operations. It is another firm in the growing list of robo advisors that have done so. However, Motif’s closure is somewhat surprising, considering that it has raised $126.5 million since 2010 (according to Crunchbase) and offers a unique and wide range of services. Motif’s name reflects its strategy of offering themed portfolios. Investors could choose from portfolios created by Motif or even other users. This gave customers a selection and level of customization that other robos simply did not offer. However, like many fallen fintechs, scale and profitability did not materialize.

Read More…

Posted on May 18, 2019

Robos expand into banking and cash management, as high yield account options have proliferated among direct to-consumer fintech platforms

Wealthfront joined the growing trend of fintech companies that offer high-yield accounts designed for cash savings. Betterment announced their cash management program late last year, as did trading app Robinhood. Robinhood launched its product with an aggressive 3% interest rate, but made a regulatory miscalculation and quickly pulled their product offline to reconfigure. Although these savings vehicles often appear very similar, there can be important differences. For example, Wealthfront places funds in FDIC insured bank accounts, while Betterment’s product invests funds in a conservative fixed income portfolio.

Read More…