'This is a big deal': Bloomberg entering online advice market

An 800-pound gorilla is wading into the market for online investment management and financial advice. Bloomberg LP is quietly testing a "premium" wealth management service, BloombergBlack, aimed directly at the mass-affluent market. For $100 a month, users of BloombergBlack will have access to account aggregation, personalized investment advice, and financial and editorial content already being produced by Bloomberg. "This is a big deal, said Grant Easterbrook, a senior research associate at consulting firm Corporate Insight, who has reviewed the BloombergBlack website. “The financial services industry is a me-too industry. When a big player like this does something, others copy it.” Bloomberg, for its part, is being tight-lipped about the new offering, which is available on a trial basis to a limited group of users. “BloombergBlack is a new premium service with a unique approach to helping long-term investors take control over their wealth,” according to a statement released by Bloomberg. Based on the limited material available on the BloombergBlack website, Bill Winterberg, chief executive of technology consultant FPPad, doesn't see Bloomberg's move as a category killer in the industry. The company appears to be focused on investment management as opposed to broader financial planning, he said. “Clearly they have a premium brand and profile, and will attract consumers, but I see them on par with websites like WealthFront and Betterment.com in the investment management market,” Mr. Winterberg said. “Whoever attracts the most people will win.” Mr. Winterberg also said he is skeptical about the $1200 annual cost for the service, given the much lower fees charged by most existing players.