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Digital Wealth Management<br />
Industry Overview – The Industry Speaks<br />
“At 0.30%, [robo advisors] offer an incredible value for a traditional advisory service towards the growing needs of<br />
the Baby Boom generation. At Wealthfront, we're focused on the ascendant millennial investor, who prefers a fully<br />
automated investment service.”<br />
- Adam Nash, Wealthfront’s CEO<br />
Source: Investment News<br />
“Bank of America Corp.’s ‘thundering herd’ of Merrill Lynch financial advisers is about to be joined by a robot. The<br />
firm has put dozens of employees to work on an automated investment prototype for Merrill Edge, which targets<br />
accounts under $250,000, according to two people with knowledge of the project. Bank of America intends to unveil<br />
the service next year, said the people, who asked not to be identified speaking about company plans.”<br />
“Bank of America sees an opportunity ‘for a robo-advised offering that could complement the advice and guidance<br />
offered by our financial solutions advisers.”<br />
- Anne Pace, Bank of America’s Communication Executive<br />
Source: Bloomberg News<br />
“LPL said it is adopting the digital hybrid approach that is increasingly popular among advisors. The independent<br />
broker/dealer didn’t provide many specifics, but said, ‘it has begun working with a third-party to develop a roboenabled<br />
solution that is intended to complement its advisors’ core business.’ LPL will integrate the robo advisor<br />
into its custodial platform and said it will be supported by its centrally managed portfolios platform. Before a<br />
company-wide launch, LPL will run a pilot program with a handful of advisor practices in 2016.”<br />
- Mark Casady, LPL Financial’s Chairman and CEO<br />
Source: WealthManagement.com<br />
"Robo advisors have been simulated on bear markets in the past, but the challenge is that every market is different.<br />
Those market participants are increasingly computerized. It would be difficult to simulate future financial markets<br />
because we don't even know who will participate in these financial markets. We don't know what computer<br />
programs will be invented and we don't know what crazy things these computer programs will do. If you can't<br />
predict a class of things, you can't program a computer to react to it in a rational way. Computer algorithms people<br />
invent two years from now will be different from what is used to trade today. SEC rules can be different.“<br />
Source: Company websites, Karlsruhe Institute of Technology, IDC, MindFrame, Infosys.<br />
- Christopher Thorpe, Blueleaf’s Co-Founder<br />
Source: Investment News<br />
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