Robo-Adviser Wants to Lend You Money, Not Just Manage It
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Wealthfront becomes first of its kind to enter lending arena
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Clients will be able to borrow cash against their portfolios
Now the robots are coming after more than your investment adviser.
Wealthfront Inc. said in a blog post Wednesday that it will offer loans, calling the move a first among robo-advisers, which are known for wealth management using automated investing platforms. Through a partnership with RBC Capital Markets LLC, clients with at least $100,000 can take out loans of as much as 30 percent of their account value, using their portfolios as collateral.
“This is consistent with our strategy, which is to take basically every major service that a private wealth manager offers to wealthy clients and use software to offer it to some people who can’t afford the minimums,” Andy Rachleff, Wealthfront’s chief executive officer, said in a phone interview…
Robo-Adviser Wants to Lend You Money, Not Just Manage It
