In addition to a monetary settlement, three Charles Schwab investment adviser subsidiaries have agreed to retain an independent consultant to review their policies and procedures relating to their robo-adviser’s disclosures, advertising and marketing practices.
The partnership offers adviser managed accounts, an application programming interface (API) to provide personalized participant advice and a library of APIs to create a robo-advisory platform.
It appears, according to a survey by Dalbar, that people put more faith in the advice of a human adviser.
They want advisers to handle their investments but also to consult on their decisions.
However, they expect their adviser to be technologically savvy.
When it comes to trusting a financial services firm, consumers first want it to secure their personal information; secondly, they expect it to deliver high-quality customer service.
Looking to 2018 and beyond, traditional advisers, brokerage firms and banks are widely (and aggressively) seeking to integrate digital advice into their service offerings; the CFP Board Center for Financial Planning offers a digital advice road map to help make sense of it all.
Since 2015, investors' interest in using digital advice platforms has increased modestly, far outpacing actual adoption, according to Cerulli; for clients of both traditional advisers and robo platforms, knowing disclosure information is easily available is often felt to be more important than reviewing it in depth.
Folio Institutional’s API Service makes it easier for firms to build their own unique digital investing platform that includes custom online account opening, document management and securities trading.