Exclusive: Wells Fargo to unveil robo-adviser partnership with SigFig
Exclusive: Wells Fargo to unveil robo-adviser partnership
with SigFig
By Olivia Oran November 15, 2016
(Reuters) - Wells Fargo & Co is set to announce a
partnership with SigFig for clients to use the robo-adviser's technology and
wealth management investment tools.
The announcement is expected on Tuesday, the bank said,
with Wells likely to roll out a pilot version of the service during the first
half of 2017.
"As we continue to invest in technology that serves
the evolving needs of our clients and our advisors, this offering will mark an
important step forward in delivering financial advice to the next generation of
investors, while building a long-term pipeline for our full-service
business," said David Carroll, head of wealth and investment management at
Wells Fargo.
Wall Street banks and investment firms are increasingly
building or buying robo-advisers to provide automated investment advice through
web-based platforms at a lower cost than traditional financial advisers.
Unlike Betterment and Wealthfront which have focused on
catering directly to young, tech-savvy millennials, SigFig has been forging
relationships with banks.
UBS Group AG said in May it had bought an undisclosed
stake in SigFig. The two companies also said they would form a research lab to
collaborate on new wealth technology.
Wells' strategy of putting SigFig in the hands of its
investing customers is different than that of UBS, which is rolling out the
service for its financial advisers to help construct investment portfolios and
other activities that can be automated.
Morgan Stanley and Bank of America Corp are building
their own technologies, while BlackRock Inc acquired FutureAdvisor last August.
The digital wealth management market could top $20
trillion in assets by 2020, according to consulting firm A.T. Kearney.
(Reporting by Olivia Oran in New York; Additional
reporting by Elizabeth Dilts and Dan Freed; Editing by Jeffrey Benkoe)
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