As reports The Wall Street Journal, Wells Fargo robo-advisory service currently looks for retail clients to the bank`s brokerage arm.
Robo -advisory service combines digital access to nonproprietary funds with facultative access to financial advisors at 3 call centers. Account minimums are $10,000, and the advisory fee of 0.50%. Wells Fargo clients with $25,000 in deposits or $50,000 in combined banking, brokerage and credit assets qualify for a discounted fee of .40%.
“We didn’t until now have the right approach to meet millennials’ investment purposes,” head of Wells Fargo wealth- and investment-management business Jonathan Weiss said. “This fills that void.”
Nevertheless, Weiss mentioned that the 72 million of the bank`s retail clients present an opportunity for the wealth-management business to make inroads, with roughly 20 million millennial and Generation X bank clients who so far don’t have investment accounts at the bank.
Wells Fargo makes up to $1 billion in referrals a month from its banking arm into its investment arm, and the bank expects that this figure will grow once robo-advisory investment company is launched. As Weiss said there are no sales targets for the new service, nodding to a sales scandal that burst in September 2017.
The service that is intended to be launched so far has limited investment options, among which Black Rock Inc.`s iShares exchange-traded funds and smart-beta products developed by Goldman Sachs Group Inc.