Relevant questions for incumbent institutions and fintechs thinking of moving into the wealth space are: Will my customers trust me with their financial future? Do they feel secure with the service that I'm providing? Given Wells Fargo's recent negative publicity, they may struggle to regain the trust necessary to rapidly grow a robo-advisory business.
Wells Fargo makes move into robo-adviser market
Wells Fargo has fired a shot in the "robo wars", teaming up with a San Francisco-based supplier of technology in a move likely to pile pressure on standalone automated platforms, such as Wealthfront and Betterment. On Tuesday Wells said it was partnering with SigFig, an online platform which helps investors build and rebalance tailored portfolios based on responses to questionnaires.