Country: USA
Year: 2010
- Betterment is the largest Robo-Advisor in terms of number of investors (70,000), and is famous for providing its users with an enriched user experience
- Betterment is particularly client centric with a simplified experience both on their website and App. The objective is to be closer to their user with very little human interaction
- Betterment’s regular content updates including posts and videos tutorials make them very transparent to users. They establish a trustworthy relationship with the investors to strengthen customer loyalty.
- Betterment has teamed-up with Fidelity IWS to launch Betterment Institutional. Fidelity offers information and education on Betterment to its 3,000 RIA firms
Concept
- Betterment is a Robo-Advisor that targets people investing in order to achieve predefined goals (retirement, financing children studies, building a safety net, etc…). When a goal is considered unrealistic, Betterment makes recommendations to modify it
- Betterment determines its users’ risk tolerance, asks them for goals (achieving a certain amount of money in a certain time) and makes a recommendation with a personalized asset allocation that the user can adjust it at his will
- Betterment automatically reinvests the dividends and rebalances the portfolio every quarter to keep the same asset mix
- It only selects low-cost, highly liquid, index tracking ETFs, to assure desired asset exposure at the lowest cost
- Betterment also launched a white-label robo-advisor for conventional financial advisors (www.bettermentinstitutional.com)
Consumer Benefits
- Betterment is really focused on User Experience, everything is made simpler for its users (Web and App design, advices, videos, etc…)
- Betterment offers personalized services with a human advisor (for accounts above USD500k+)
- Betterment launched a B2B service to help RIAs (Registered Investment Advisors) enrich their customers’ user experience
How to use
- A little video demo on Youtube
Keywords: Robo Advisors; investment