RBC launching Digital Advice Pilot with FutureAdvisor
The US division of RBC Wealth Management is working with BlackRock-owned digital wealth management provider FutureAdvisor on a pilot program for select clients in the United States. Called RBC Investor Gateway, the new service will provide RBC Wealth Management financial advisors with the opportunity to reach a broader range of clients through FutureAdvisor’s digital advice platform.
“Integrating digital advice into our platform will never be a replacement for the deep relationships and high-touch service that our financial advisors provide,” said John Taft, chief executive of RBC Wealth Management, US. “But we also recognise that investors have many different needs and want choice. By including a digital advice option through RBC Investor Gateway, we can serve a broader group of clients today, and also meet the changing needs of investors over the course of their investment lifetime.”
Through the collaboration with FutureAdvisor, RBC Wealth Management will act as the custodian of all RBC Investor Gateway client assets, producing client statements, trade confirmations and tax documents, while FutureAdvisor will provide personalised digital advice based on a client’s portfolio, including when to make investment decisions.
RBC Investor Gateway will initially be targeted at investors who also want to use automated investment strategies and tools, or investors who are just beginning to build wealth, with the capacity for the firms to cross-sell further products if clients’ needs develop and the complexity of their investments increases. At that point they can establish a larger relationship with RBC Wealth Management and a financial advisor.
FutureAdvisor, which was acquired in August 2015 by BlackRock, the world’s largest asset manager, and reports it has more than US$700 million in client investments since its founding in 2010.
Reported by Dan Barnes