Silicon Collar looks at machines and humans at work in over 50 settings across industries and countries. On this blog I will excerpt many of those settings over the next few weeks. On Deal Architect I will excerpt more of the policy parts of the book.
As FastCompany reported, "Companies such as Wealthfront, Betterment and FutureAdvisor offer ‘robo-adviser’ services. Rather than investing money based on the decisions of a human expert, they use technology to manage a portfolio and recalibrate it on an ongoing basis. Doing so allows them to grind down fees, and poses a threat to the conventional business model of a company like Schwab, which is very much used to monetizing the wisdom of human beings."
So Schwab has responded with its own Schwab Intelligent Portfolios, which it markets as "an online investment advisory service that builds, monitors, and rebalances your portfolio—so you don't have to."
While it's still tiny—the service has $6 billion under management and a team of 300 (out of a total staff of 15,000)—it positions Schwab to compete with the start-ups as the market gradually warms up to robo-advisers.