Ken Research’s FinTech Profile: Wealthfront provides information and insights into Wealthfront, including overview of the company and its products. It gives detailed insights into its business operation, technology, revenue model, geographical presence and target market along with information on funding, partnerships, and awards it received. The report gives a biography of top management and helps in understanding its target market and audience better. The companies involved in this space are DAG Ventures, Greylock Partners, Index Ventures, Social Capital and Spark Capital. The products offered and covered in the report are Fintech, Artificial intelligence, Savings, investments, and asset management.
Many wealth and asset management firms these days use AI to improve the quality of services. Wealthfront believes technology can do a few things better than humans and managing wealth is one of them. Wealthfront is one among the many robot advisors in the market. They are automated investing platforms who replace personal, expensive financial advisor and democratise investing. The company which was built in 2011 has grown considerably in terms of its size of built up assets and is enormously popular. The system of working is simple – money is invested into a Wealthfront account and the money is held by the Royal Bank of Canada, instead of Wealthfront. Wealthfront allocates the investment into an assortment of ETFs.
The technology used by Wealthfront is the popular Modern Portfolio Theory (MPT) which creates automated asset allocation based on financial needs and risk tolerance. Wealthfront clients can access Stock Level Tax – Loss Harvesting. It can be accessed at three levels- Wealthfront 100, Wealthfront 500 and Wealthfront 1000. Path, which is a financial planning service of Wealthfront is going to become free to offer new users free access to their financial planning services. This is expected to be rolled out by the end of this year. As per this new service, the new subscribers will receive all the good side of technology in automated financial planning and none of the shortcomings its competitors face. The new ‘freemium’ software as it is called, will use third party data and account aggregation. This platform will help in establishing feasible financial goals to plan for education, retirement and time off work.
Based on the company’s data, many users are benefitted from the Path program since it is likely to give an accurate estimate of funding needed for a purpose. The company has seen elevated savings rates among Path users.
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Ankur Gupta, Head Marketing & Communications