| Title | The Rich are already Using Robo-Advisers and that Scares Banks | |
| Date | Saturday February 06 2016, @11:41PM | |
| Author | cmn32480 | |
| Topic | ||
| from the if-I-rub-these-two-nickles-together dept. | ||
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.
| Links |
printed from SoylentNews, The Rich are already Using Robo-Advisers and that Scares Banks on 2024-04-16 14:19:03