fintech wealthfront, a robo-advisor located in california, is increasingly closer to being a digital bank

An online investment processing firm with more than $11.4 billion in funds under administration, Palo Alto-based Wealthfront, is officially moving closer to being a full-fledged financial bank.

Wealthfront also offers several banking-like facilities like retirement plans that are covered.

Andy Rachleff, Wealthfront CEO, has set many long-term targets for the Robo advisor, including giving its consumers an all-in-one approach to their money management needs, or what he terms ‘self-driving wealth.’

Rachleff noted in an email that Wealthfront cash services would shortly include account details, routing numbers and a debit card to the company’s clients.

in february 2018 wealthfront launched cash accounts to provide uninvested assets with high-interest deposit accounts.

Rachleff commented:

“These apps represent an significant first step in our ultimate objective of maximizing and automating the whole financial existence.

The key premise is that when consumers spend their monthly profits, Wealthfront immediately manages bill paying, provides relief reserves to borrowers, and allows prudent purchases in the right savings and opportunities for the remainder of the money according to the user’s lifestyle and financial goals.

Rachleff then added:

Our team is focusing intensely on this, so you’ll see details later this year.

wealthfront cash initially promised an interest rate of 2.24%, but the latest move by the us federal reserve to cut rates due to global economic uncertainty pressured the firm to reduce rates to only 0.26%.

Nevertheless, Wealthfront is not the first firm offering reduce interest rates on its investment plans, the prices are cheaper than other high interest deposits sold by rival financial service companies.

Wealthfront plans to concentrate on wealth management ahead of the coronavirus (COVID-19) pandemic when the world’s capital markets collapsed.

This content was originally published here.

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