Wells Fargo Advisors (WFA) and SigFig have announced they will collaborate to develop a digital advisory offering for WFA to begin piloting in 2017.
The affiliation will give Wells Fargo a platform to help investors build, implement and rebalance tailored portfolios online based on responses to investing questionnaires.
WFA and SigFig plan to optimize a direct-to-client product for WFA to offer to emerging investors who want trusted investment advice and a holistic financial experience in the digital space.
Wells Fargo Wealth and Investment Management head David Carroll said: “Wells Fargo is committed to providing investors with quality advice that aligns with their goals and is relevant to all stages of their lives.
“As we continue to invest in technology that serves the evolving needs of our clients and our advisors, this offering will mark an important step forward in delivering financial advice to the next generation of investors, while building a long-term pipeline for our full-service business.”
SigFig CEO Mike Sha said: “We are excited about the opportunity to bring SigFig’s advanced wealth management technology to Wells Fargo.
“Given the scale of Wells Fargo, this partnership will help SigFig continue to significantly expand our mission of providing high-quality investment advice to investors of all wealth and income levels.”
“Experience and partnerships are some of our strongest attributes,” said Carroll. “We have an opportunity to serve clients more holistically with a product that complements our full-service business by combining the investment strategy of Wells Fargo with sophisticated investing technology, mobile tools and intuitive design.”
“Investors are increasingly demanding improved digital experiences, making it vital that financial institutions invest more resources and incorporate more technology in their offerings," said Sha. "The breadth of our platform and the wide range of digital tools we provide help us quickly deliver cutting-edge investing technology to our clients and their customers through collaborative partnerships.”
According to the second quarter 2016 Wells Fargo/Gallup Investor Optimism survey, sixty-nine percent of investors under age 50 rely on the internet or mobile applications to interact with their primary investment firm.
While digital advice services are relatively new to consumers, investors in the survey ranked them high for simplifying the investment process, matching investments to risk tolerance and providing reliability during market turbulence.