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HSBC joined the ranks of banks offering retail robo advice to small clients, tying up with independent robo advice platform Marstone to deliver its service.
Called Wealth Track, the white-labeled platform begins a pilot program later this month, ahead of a full scale launch slated for next year. It will be available to retail banking customers with at least $5,000 in an individual retirement account and $10,000 in discretionary accounts. The service carries an annual 50 basis point fee.
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The launch adds to the trend of banks attempting to tap into their existing base of retail checking account customers as a way to create instant scale in low-cost wealth management.
Indeed, the partnership allows the London-based bank to reach clients beyond its branches in the U.S. and appeal to younger clients looking for a way to invest digitally, according to the firm. “HSBC has made a very large investment in the U.S. franchise," says Michael Boardman, head of wealth management at HSBC, in an email. "Wealth Track will create a new innovative business model for our [U.S. wealth management] customer base and signals to the market our commitment to our customers and helping to serve them when, where and how they choose." The bank has 38 million clients worldwide and manages $2.6...