The future of investing: Fintech 50, 2019
View(s):Want half a share of Apple, or bitcoin alongside protective puts? The investing, trading and wealth management firms on Forbes’ Fintech 50 2019 offer more than just the services once exclusive to big banks and traditional financial firms. They’re tapping into markets by merging new tricks with the old.
Founder and CEO of Betterment Jon Stein
Take, for example, the maturing roboadvisor market as it embraces the human side of advising. Pioneer Betterment added human advisors to its mix in 2017 and last year introduced the ability for investors to tailor their automated portfolio allocations. Further evidence of the hybrid-advisor appeal: Digital wealth management platform Personal Capital returns to the Fintech 50 list after announcing an Atlanta office in September to bulk up its team of more than 200 financial advisors, and its free online financial dashboard now claims almost 2 million users.
Meanwhile, the new generation of online brokers, which has largely forgone commission-based trading, gained millions of users in 2018. List-staple Robinhood doubled its customer base in the past year to more than 6 million, and newcomer Stash debuts on the list with 3 million users–around 80% of which the firm says are first-time investors. Expect increasingly diversified offerings in this space: Both Stash and Robinhood have announced banking plays due out later this year, in the form of a Visa-equipped debit account for the former and a cash management programme for the latter.
Facilitated access to 401(k)s and private equity are also on hand in this year’s Fintech 50. Here are the six most innovative investing companies in fintech:
Betterment, New York City
Robo-advisor pioneer manages ETF portfolios tailored to individuals’ goals and risk tolerance, held in taxable accounts and/or IRAs for 0.25% of assets a year. Customers with a balance of at least $100,000 can opt for newer hybrid premium service offering access to human financial planners, too, for 0.40% of assets a year. Betterment now also offers company 401(k) and financial advisor products.
-Jonathan P. – Forbes
