Automated investing hasn’t turned into the advisor-killing terminators that some feared, and others hoped for, when robos like Wealthfront and Betterment first hit the scene. Not yet, anyway.
However, they continue to hold a significant advantage over most traditional wealth management firms when it comes to offering a modern, digital client experience. If I were so inclined, I could download one of the apps, take a risk assessment questionnaire, set some financial goals and open an account in less time than it takes to write this newsletter introduction. The only delay would be the time it takes my bank to process the money transfer — and most of the robos have their own banks now.
The list of human advisors that can say they offer the same is very small, and some of those are probably overstating their claim. But things are changing. This week, Schwab Advisor Services finally pulled the curtain back on the fully digital client onboarding process it’s been talking about since 2018. A month ago, Merrill Lynch showed off theirs. And a host of smaller custodians are doing everything they can to flaunt their digitally native brokerage platforms that can work for fintechs and advisors alike.
It may have taken a decade, but the ante has increased. These are the table stakes now. Advisors who can’t play will soon be asked to take their chips and leave.
| | Ryan Neal
Technology Editor, Financial Planning
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| By Ryan W. Neal 3 min read | A top priority of the firm since 2018, advisors will financially be able to paperlessly open new accounts in June. Read story → |
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| | | By Ryan W. Neal 2 min read | Advisors who use at least two of the services will receive discounted pricing. Read story → |
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| | | By Cynthia Fernandez 4 min read | The vision is to democratize “high-quality, personalized advice at scale, just as the independent advisor has disrupted wealth management,” the companies said in a statement. Read story → |
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| | | By Gillian Tan 1 min read | The company is buying financial-literacy startup PayGrade, which makes a virtual banking and investing product used by K-12 schools. Read story → |
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| | | By Stefania Spezzati 1 min read | The deal values the robo advisor at close to $966 million, according to people familiar with the matter. Read story → |
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