Charles Schwab’s new hybrid robo will be very attractive for the US mass affluent
This week American lender Charles Schwab launched its second robo advice proposition.
This week American lender Charles Schwab launched its second robo advice proposition. The service has a minimum investment of $25,000 and an annual advisory fee of 0.28% of assets with a quarterly maximum of $900.
Announced at the tail end of 2016, the new proposition will be a hybrid advisory service that combines live credentialed professionals and algorithm driven technology to make financial and investment planning more accessible to consumers.
The firm released its first robo advisor offering, Schwab Intelligent Portfolios, in 2015, which is a digital only proposition that will continue to run alongside the new proposition.
The new proposition (which has a $25,000 investment minimum as opposed to $5,000 for the firm’s basic robo advice proposition) will require clients to initially answer questions online, and then speak to a human advisor to have their goals and asset allocation determined. This differs from UBS’ approach with SmartWealth where the onboarding process is completely automated.
Clients of the new Charles Schwab service will also be able to contact a human advisor if they experience any jitters – during a period of volatility, for example.