Robo adviser Wealthfront forays into personal banking
Wealthfront, a US-based automated investment service firm, has partnered with RBC Capital Markets to move into the personal banking space through the launch of a new service that will enable customers to take out loans against their investment accounts.
The service, known as Portfolio Line of Credit, allows Wealthfront customers with at least $100,000 invested in an individual or joint investment account borrow up to 30% of their account value.
The robo-adviser said that customers will be able to sign up to the new service in 30 seconds and in some instances even get their money in 24 hours.
The new service charges interest of between 3.25% and 4.5%, which according to Wealthfront is well below traditional alternatives as the credit is secured by a customer’s own investments.
Wealthfront CEO Andy Rachleff said: “With Portfolio Line of Credit, you’ll get immediate access to credit that’s less expensive and more convenient, all the while continuing to grow your investment account.”
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