Robots are slowly creeping their way into retail, restaurants, hospitals and now, robo bitcoin app are starting to show a presence on Wall Street. Although some banks have argued that wealthier individuals will ‘always demand face-to-face advice’, many high-net worth investors are looking to robo-advisors for guidance in the market. Roughly 15 percent of ‘robo-clients’ at Charles Schwab Corp.
1 million in the company, Bloomberg writes, and the trend is increasing across the board. 3 billion to its offering, a spokesman told Bloomberg. Elsewhere, the trend is growing among wealthy investors and financial giants. But Betterment has set out to prove this bank and the rest of them on Wall Street wrong. Robo-advisers are developed through software to provide customers with financial advice or portfolio management with minimal human intervention.
The systems generate investment advice using computer programs, and run at a much cheaper rate than traditional, human, brokers, who can charge at least one percent of the assets being managed. And Betterment is not taking on the industry alone, major players such as Goldman Sachs, JP Morgran Chase and Charles Schwab are already making strides using the technology. But, according to Verhage, Betterment knows robo-advising is set to take off and it wants in on the action. These are fundamental decisions about who we are as a company,’ Founder and Chief Executive Officer Jon Stein told Bloomberg in an interview. We’re attracting a lot of affluent customers already, but I think our voice—as we speak to that person—has to show we are established. The firm has also added opportunities for clients using it robo-adviser to access more exclusive products, as it has found that people want alternatives – making its technology more attractive. Betterment has yet to reveal how many of its clients are accredited investors, but it noted that more than 25,000 of its 250,000 customers are.