Banks Build In-House Robo Advisors as Long Term Strategy

Robo advisors have quickly become a must have product for banks as they look to offer their customers comparable products to some of the popular fintechs; fintechs like Wealthfront, Betterment and Ellevest have also added bank accounts to their offerings in recent years; banks know that these products are not big moneymakers and the interest in them has been muted so far, but the strategy is a long term one; “With deposit rates being so low, customers need more growth to achieve long-term goals,” said Aaron Fine, Partner and Head of Retail and Business Banking Practice, Americas at Oliver Wyman, to American Banker. “There’s a certain level of convenience that comes from having your relationship with one place, and a certain level of trust that people have with their banks versus a Betterment or Wealthfront,” Fine said.; even with the pandemic there continues to be a growth in retail investing, banks are hoping the ability to offer these products alongside mortgages, car loans and more will force consumers to think twice before jumping to a fintech. American Banker.