Citizens Bank Rolls Out Robo-Advisor
Citizens Bank has launched a digital advice offering in partnership with SigFig Wealth Management, according to Bloomberg.
The new robo, which rolled out Wednesday, requires a minimum investment of $5,000 and charges a 0.5% asset-based fee annually, or about half of what’s normally charged by traditional financial advisors, the news service reports. Like the majority of robo-advisors, Citizens’ offering will rely on algorithms to dole out financial advice, according to Bloomberg.
Citizens’ digital advice offering is part of an industry-wide trend of banks getting into wealth management, the newswire observes. But the company is the first among regional banks to offer a single platform that lets clients access online banking and investing as well as letting them view investments held at other institutions, according to Finextra.
Citizens’ clients on the platform can also request one-on-one access to human financial advisors, the web publication writes.
Other major financial institutions have also been partnering or buying out robos — or building their own, according to Bloomberg. BlackRock bought the robo provider FutureAdvisor back in 2015, the news service notes, while Charles Schwab, Fidelity Investments and Vanguard Group all developed digital advice platforms since then.
Merrill Lynch rolled out a robo-advisor earlier this year, while Morgan Stanley is expected to start offering one later this year to the children of existing clients. And Goldman Sachs began developing a robo platform last spring.