Schwab preps robo offering

CEO Walt Bettinger says his firm is working on a “groundbreaking” online advice platform, though details and a timeframe remain unclear.
AUG 01, 2014
Charles Schwab Corp. is kicking the tires on an online advice offering, the firm's chief executive, Walt Bettinger, said Friday, teasing it as a platform that would be “groundbreaking” for the firm. “We are fast at work on what we believe will be a groundbreaking and market impacting introduction of an online advisory solution,” he said. He declined to offer more details or a timeframe for the offering. Asked whether the firm was working on its own software or planned to make an acquisition of an existing offering, Mr. Bettinger said he was not ready to make a full announcement. It was also not clear how the platform would be deployed, but it could be a boon for the firm's 1,100 financial advisers as well as the registered investment advisers on the Schwab platform who could benefit from being able to capture the growth in with the low-cost, automated investing offerings. While still representing only a small fraction of the market, online advice platforms, such as Wealthfront Inc. or Covestor Ltd., have grown by offering automated investment and asset allocation for a low fee, around 25 to 35 basis points. Automated online investment platforms hold approximately $15.7 billion in assets under management, according to a recent survey from Corporate Insight analyst Grant Easterbrook. Consultants have touted the potential benefits for advisers who partner with online solutions like Wealthfront or Betterment. Around 31% of registered investment adviser and broker-dealer executives polled in an informal Fidelity Institutional survey said that they planned to incorporate an online model into the existing business . HighTower's chief executive made similar remarks in May in an interview with InvestmentNews, saying the firm was exploring adding online advice as a fourth leg of the firm's hybrid investment advisory and brokerage platforms.

Latest News

Annuities for RIAs: Why fee-only advisors still hit a wall
Annuities for RIAs: Why fee-only advisors still hit a wall

Halbert Hargrove senior wealth advisor weighs in on the products' guaranteed income upside, the operational drag and his wish list for carriers.

Broker-dealers must lean on tech, brand as advisors weigh options
Broker-dealers must lean on tech, brand as advisors weigh options

With 8.6% of advisors set to switch firms in 2026, Cerulli says advisor recruitment hinges on technology, branding and HNW support.

Advisor vs. advisor, Seattle showdown in fight for clients
Advisor vs. advisor, Seattle showdown in fight for clients

“I’m seeing more disputes like this between advisors and other advisors at the same practice,” said one industry executive.

Great Wealth Transfer might give way to a 'mirage,' Dunham research warns
Great Wealth Transfer might give way to a 'mirage,' Dunham research warns

Longer retirements and steady inflation could drain retiree portfolios before heirs inherit, with 4% net returns running dry by year 34.

Investors sue Coastal Financial after one fintech partner erases $470M
Investors sue Coastal Financial after one fintech partner erases $470M

A single fintech partner triggered a $68.8M credit hit.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains