Wells Fargo has launched 'Intuitive Investor', a hybrid online offering from its advisory arm aimed at simplifying investing by 'blending technology-driven resources with high-impact personal advice to give new and emerging investors a lower-cost option for entering the markets'.
The new investment program is aimed at self-directed investors and combines digital access to strategies from Wells Fargo Investment Institute with the option to access financial advisors from Wells Fargo Advisors. The new robo-advisory service is aimed at investors seeking to 'affordably implement' tailored investment portfolios aligned to their personal investment goals and needs, and provides single-sign-on integration with other online Wells Fargo banking services.
The underlying portfolio strategies designed by Wells Fargo Investment Institute for Intuitive Investor also will be available to clients seeking dedicated advice from a full-service financial advisor via Wells Fargo Advisors' Allocation Advisors program.
According to Jon Weiss (pictured), head of wealth and investment management at Wells Fargo, the new service is inspired in significant advancements in technology, changing consumer preferences and evolving demographics, and will provide access to third-party exchange-traded funds (ETFs).
"We're always exploring new ways to help our customers reach their financial goals," said Weiss. "As we test and develop the Intuitive Investor platform, we will continue to identify and evaluate additional assets that best serve our clients' investment needs."
Weiss said that no exchange-traded notes (ETNs) will be available on Intuitive Investor as these "are complex and this product is designed for new investors". However, advisors will have the ability to refer new and emerging clients to Intuitive Investor accounts as they focus on the complex wealth and investment management needs of their clients using other resources.
The new digital tool requires a minimum US$10,000 investment, managed at a 0.50% annual advisory fee, and provides online investment profiling, phone access to financial advisors, and daily and ongoing portfolio monitoring and management. Portfolio recommendations are based on investors' personal responses to a brief online questionnaire and will comprise ETF portfolios designed by Wells Fargo Investment Institute, with 'automated rebalancing and optional tax-loss harvesting'.
The introduction of the Intuitive Investor program follows Wells Fargo Advisors' recent moves to innovate its digital suite of online and mobile tools including 'WellsTrade', the company's self-directed digital brokerage offering mutual funds, ETFs, options and market linked investments including market-linked certificates of deposit (MLCDs) and structured notes; 'Control Tower', a single view of customers' digital financial footprint, and an 'artificial intelligence chatbot on Facebook Messenger'.
Wells Fargo was a tier two provider of structured products in the US market in 2016 with a 3% market share across US$1.6bn in sales, among a group of banks with single digit market shares including HSBC (4%/US$2bn), Barclays (3%/US$1.2bn), BMO Financial (2%/US$1.09bn) and Credit Suisse (2%/US$1.05bn), according to SRP data. Year to date, the US firm has dropped out the top 10 ranking but remains an active player with over 270 products marketed in 2017 worth US$1.2bn. SRP data also shows that the US firm has 916 live products in the US retail market.
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