British financial app Revolut has brought its robo-advisor to U.S. soil.
The automated investing feature manages customers’ investment portfolios for them with fees Revolut says are lower than the ones offered by traditional companies.
“We know that many of our customers do not have the time to manage a portfolio or invest in individual securities,” Jack Callahan, the FinTech’s head of wealth and trading for the U.S., said in a Thursday (June 29) news release.
“Built to make investing more accessible, we want to give our customers the ability to make their money work for them in what we believe will be a tailored and stress-free way.”
According to the release, the robo-advisor, based on responses from customers, lets users invest in one of five diversified portfolios based on their risk tolerance. After a customer deposits funds into their portfolio, the Robo-advisor automatically invests it in the market and then tracks and manages their portfolio.
“The Robo-advisor rebalances the portfolio automatically to stay in sync with the customer’s risk tolerance determined at onboarding,” per the release.
As PYMNTS reported earlier this year, when Wells Fargo launched a digital wealth management platform, consumers are increasingly turning to digital channels for their wealth management needs.
Bank of America reported last summer that it had seen a record increase in digital engagement by Merrill and Private Bank clients, with 82% of its wealth management customers now digitally active. Likewise, the banking giant reported a 59% year-over-year increase in the number of financial planning reports run for Merrill clients.
In January, consumer data platform GoLogiq and financial services platform GammaRey combined to tap into the high-growth Generation Z and millennial wealth management market, with the companies saying their merger would let them provide services to younger consumers who have seen their assets rise from $2.9 trillion to $3.6 trillion.
Revolut’s new U.S.-based effort comes at a time when the company is facing difficulties in its home country. Earlier this month, venture capital firm Molten Ventures slashed the value of its stake in the company by 40%.
CEO Martin Davis later gave an interview which indicated that Revolut’s as-yet-unsuccessful campaign to get a U.K. banking license led to the markdown, though he insisted Molten remained confident in the company.