The Rich Are Already Using Robo-Advisers, and That Scares Banks
- About 15% of Schwab's robo-clients have at least $1 million
- Morgan Stanley, Wells Fargo, BofA planning automated services
Are Robo-Advisers Better Than Humans?
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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.