HomeChannelsBusinessCharles Schwab launches hybrid human-robo financial advice

Charles Schwab launches hybrid human-robo financial advice

1489465996

By Anna Irrera
| NEW YORK

ADVERTISEMENT

NEW YORK Brokerage Charles Schwab Corp (SCHW.N) on Tuesday launched a service that combines its automated investment management technology with human advisors, as financial institutions race to offer digital financial advice.

The service, called Schwab Intelligent Advisory, provides clients with a financial and investment plan, unlimited access to a human advisor via phone or video conference, and an investment portfolio of exchange-traded funds managed by computer algorithms.

The service, for clients with at least $25,000 to invest, includes an online platform that keeps track of financial goals and retirement plans, the San Francisco-based company said in a statement. It will charge a 0.28 percent fee on assets, with a quarterly maximum of $900.

The service comes less than two months after Betterment LLC, one of the first and largest online wealth managers known as robo-advisers, said it would offer two similar hybrid plans, with minimum investments of $100,000 and $250,000.

Betterment’s move marked a surprising shift toward human advisors. Robo-advisers had focused on automation to capture lower net worth clients regarded as too expensive to service.

The sector prompted established financial institutions to launch similar services, raising concerns about whether small robo-advisers could survive the competition.

Large financial institutions can afford to charge less for robo-advice because they also offer the exchange-traded funds in their automated portfolios.

Schwab, which announced the hybrid service in December, has been one of the most aggressive established brokerages to fight back against robo-advisers. It launched its first robo-advice product two years ago and quickly added clients.

(Reporting by Anna Irrera; Editing by Richard Chang)

Reuters

ADVERTISEMENT

ADVERTISEMENT
Just in:
First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // Emirati Aid Reaches Ukraine as Food Shortages Bite // DrGo launches DrGo Me+ Ready Pack portable nutritional supplement pack // Simplified Business Moves for Al Reem Island Firms // Universal Language for Healthcare: General Authority Embraces Global Coding System // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Aid is at the core of Israel, Palestine struggle to control post-war Gaza // Digital Hub Unveiled: Xposure Launches Platform for Global Photography Community // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // CABSAT 2024 Ushers in 30 Years of Media Innovation // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // A Tightrope Saudi Walk Towards Net-Zero // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Ingdan Announces 2023 Annual Results // Sunshine’s Debut Features Leave Tech World Scratching Its Head // US reiterates concern over Kejriwal arrest, Cong accounts // German Job Market Resilience Bodes Well for Economic Recovery // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange //