Robo advisors

The Swiss lender is looking to boost shareholder returns

Large financial institutions are investing in technology to tap into the growing workplace wealth market.

The sale of the robo advisor represents a $1.6 billion dollar vote of confidence for all financial advisors, says Riskalyze CEO Aaron Klein.

The robo is adding repayment help and, eventually, 529 savings plans to its service for employers.

The bank plans to let the digital advisor operate as a standalone unit while looking for near-term “easy wins.”

CEO David Fortunato may say that the robo’s “philosophy and principles remain the same,” but the sale to a big bank is a huge change.

The bank plans to make the robo-advisor the foundation of a new digital offering that will include access to human advisors.

Wealthfront is exploring a sale that could value the automated wealth manager at as much as $1.5 billion, according to people familiar with the matter.

Firms like J.P. Morgan Chase, Stash and M1 are aiming to serve clients with advice and new tools for all ages and income levels.

Automated investing services use misleading language in marketing materials and portfolio management is not meeting fiduciary requirements.