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The Rich are already Using Robo-Advisers and that Scares Banks

posted by cmn32480 on Saturday February 06 2016, @11:41PM   Printer-friendly
from the if-I-rub-these-two-nickles-together dept.

Phoenix666 writes:

Banks are watching wealthy clients flirt with robo-advisers, and that's one reason the lenders are racing to release their own versions of the automated investing technology this year, according to a consultant.

Millennials and small investors aren't the only ones using robo-advisers, a group that includes pioneers Wealthfront Inc. and Betterment LLC and services provided by mutual-fund giants, said Kendra Thompson, an Accenture Plc managing director. At Charles Schwab Corp., about 15 percent of those in automated portfolios have at least $1 million at the company.

"It's real money moving," Thompson said in an interview. "You're seeing experimentation from people with much larger portfolios, where they're taking a portion of their money and putting them in these offerings to try them out."

Traditional brokerages including Morgan Stanley, Bank of America Corp. and Wells Fargo & Co. are under pressure to justify the fees they charge as the low-cost services gain acceptance. The banks, which collectively employ about 46,000 human advisers, will respond by developing tools based on artificial intelligence for their employees, as well as self-service channels for customers, Thompson said.

E-trade disrupted brokerages for small investors. Looks like that disruption is arriving at the top end, too.

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  • (Score: 2) by Arik on Sunday February 07 2016, @02:46AM

    by Arik (4543) on Sunday February 07 2016, @02:46AM (#300011) Journal
    E-trade is utter bullshit. Every time I even log in to look at what I have, they lock my account. When I call India to get back in, they invariably demand I fax all my personal documents to India.

    I would absolutely black-list these sons-of-bitches and put them in a static dns blackhole for eternity if my company didn't insist on distributing my stock options through them.

    Any real finance-geeks reading? Help me figure this out and I'll happily remote into your computer to clean any rootkits/etc out more than once.

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  • (Score: 0) by Anonymous Coward on Sunday February 07 2016, @03:26AM

    by Anonymous Coward on Sunday February 07 2016, @03:26AM (#300024)

    Agreed. Etrade has gotten wierd lately.

    • (Score: 0) by Anonymous Coward on Sunday February 07 2016, @04:36PM

      by Anonymous Coward on Sunday February 07 2016, @04:36PM (#300235)

      And has been shitty forever. Even in 1999 there were alternatives to them that were a lot better.