Note from the Publisher: This is all over the industry news today and we have to put our spin on it, too. While Wells Fargo has been hinting at launching a robo for a while now, they just announced that they would parter with SigFig (who is also working with UBS) to launch a new robo. Wells is a bit behind on this (okay, WAY BEHIND many other banks), so they must have figured out that they needed a firm that knew what they were doing to get this thing launched. Also with their recent fake account debacle, and subsequent John Stumpf resignation, they may have been a little tied up on other things. Anyway, they are underway on their new robo now.
“Wells Fargo has finally revealed its plans to enter the digital advice market.
The recently embattled bank announced a new partnership Tuesday with SigFig, a technology company based based in San Francisco, to develop a new robo advisory offering for Wells Fargo Advisors.
Like other robo advisors, the technology is designed to be a low-cost offering for younger, emerging investors. The platform will automatically create a portfolio based on an investor’s answers to a questionnaire. Investors can then add funds electronically, and algorithms will automatically rebalance holdings, removing the need for a traditional financial advisor. The robo’s investment strategy will come from the Wells Fargo Investment Institute.
Wells Fargo plans to launch a pilot program in 2017. Though it is a direct-to-consumer offering, Wells Fargo advisors will be able to offer the robo as a complementary offering to the existing business. The go-to-market strategy is still in development, but Wells Fargo plans to leverage internal channels to offer it broadly to Wells Fargo customers.”