The banking giant plans to offer robo advise to customers by the end of the year.
The banking giant plans to include automate wealth advice as part of new digital only banking services.
Robo advice or automated wealth management is becoming increasingly popular. JPMorgan’s CEO Jamie Dimon just revealed in his annual letter to shareholders that the US bank is developing automated wealth management advice and services.
“We are currently developing some exciting new products and services, which we will be adding to our suite and rolling out later this year,” he wrote “Online vehicles for both individual retirement and non-retirement accounts, providing easy-to-use (and inexpensive) automated advice, as well as enabling our customers to buy and sell stocks and bonds, etc. (again inexpensively),” he said.
Robo advice is the name given to low costing online wealth management and financial advice that uses automated algorithms to allocate investors' assets into model portfolios based on a questionnaire analysing risk tolerance as well as other factors.
Other banks have also ventured into the sector, such as Wells Fargo and Santander UK. In the US, Bank of America’s Merril Lynch is launching a service this year, and Citigroup has invested in the largest robo adviser, Betterment.