Tag: Robo Advisor

Posted on May 23, 2019

Cash management products spread across direct-to-consumer fintech platforms

The digital advice industry continues to evolve in 2019. Cash management apps, linked debit cards, and high-yield savings accounts are sweeping across direct-to-consumer fintech companies. Wealthfront announced their high-yield savings account this quarter, following Betterment’s cash management program announcement late last year.  Meanwhile, Robinhood released their high interest account last December, although it was quickly shelved after regulagatory pushback.

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…

Posted on May 8, 2019

Although initially seen as a disruptor to the financial services industry, digital investing and robo advisors continue to expand markets, engage previously underserved clients, and encourage traditional wealth managers to embrace technology.

This past quarter we spoke with Karen Wimbish, Head of Product for U.S. Bancorp Investments and Financial Planning, about her experience with Automated Investor, U.S. Bank’s digital investing platform.

Read More…

Posted on May 1, 2019

SoFi, a company originally built on consolidating student loan debt, has been aggressively expanding into other consumer finance markets. They first launched their robo investing platform in 2017, followed by their cash account offering in 2018, and a self-directed brokerage platform with no-commission trading earlier this year.  

“Although SoFi has a suite of undeniably compelling products, we question whether their customers are their top priority”

Read More…

Posted on January 23, 2019

“As interest and adoption grows among banks and advisors, so does activity in B2B robo advice products.”

As interest and adoption grows among banks and advisors, so does activity in B2B robo advice products.  We have witnessed a slew of acquisitions and consolidations in the industry, as asset managers and incumbent institutions attempt to better position themselves for the expansion of the digital advice industry.

Read More…