April 20, 2016 11:10 am | Updated 5 years ago.
Charles Schwab Corp is all set to unveil an updated version of robo-advisers which they had launched last year. The upgraded version of the robo-adviser, which is an automated investing service, will be offering more personalized services from now on. Schwab Corp tracks individual investors to at least one of about 40 preset portfolios. Schwab’s algorithms have been so programmed to automatically update portfolios based on the gains and losses in the market.
Robo-advisors suggest portfolios of stock, commodities and other instruments based on the investment of people with similar demographics. The only flip side is the absence of a human face. According to Tim Heier of Schwab Corp, the algorithms perform those tasks which would initially require hiring financial advisors. The company envisages in augmenting its performance by collecting more data from clients and other sources. Since its launch, a year back, Schwab Corp has grown and manages about $6.6 billion in assets with an average account size of $85,000. The company is also working on retirement planning and estimations about social security payouts.
Date of Publication: April 18, 2016