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Wealthfront busts through $20 billion mark with its 'break things but make it happen' approach, but it's bedeviled by details when it comes to customers

CEO Andy Rachleff near doubles assets with high-interest paying robo-bank as new tailwind, but with brand risk as customer service may not be keeping pace, according to one cautionary tale.

Author Oisin Breen September 15, 2019 at 2:42 AM
2 Comments
no description available
Michael Cohan: No information can be revealed at any point, lest laundering proliferate unchecked and unabated around the cosmos.

Robo-Advisors


Brian Murphy

Brian Murphy

September 16, 2019 — 7:32 PM
Wealthfront is a company that never really found economically viable product/market fit with their wealth management offering. Instead they continue to look for lower cost acquisition strategies to continue driving AUM, that can bring their average revenue per client up. Unfortunately I can't see much in the way of margins on the money market fund - just a lot of likely future churn. Good luck to the team in pulling off a turnaround however.
Greg B

Greg B

September 16, 2019 — 9:07 PM
ACH fraud is becoming a growing problem and this, not AML concerns, is likely the reason for the restrictions they have in place.

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June 29, 2024 at 3:00 AM

Wealthfront's unlikely tapping of Sheila Bair and Tom Curry signals likely push to gain a bank charter, analysts say

The Redwood City robo-advisor's addition of two renowned former chief banking regulators brings legitimacy and guidance that could lead to a margin-fattening bank charter and help solve the robo-advisor's problem of high client acquisition costs.

December 31, 2020 at 4:37 AM

Altruist is CTO-less, for now, quasi-intentionally, it says • Ex-rival exec hired to jumpstart cross-selling Orion products to enterprise clients • BlackRock tops Grayscale • Facet outsources estate plans • Advyzon profits off Goldman exodus • Dan Wiener's RIA has new CEO • CFP count tops 100k

Shiralker out at Altruist • Orion gives Trevor Noble his cause • Bitcoin has a new fund king • Software maker benefits from Goldman custody exec. churn • Carson Group denies lawsuit • Merge of Wiener's old shop complete • 100,000th CFP named.

June 7, 2024 at 1:44 AM

July 11, 2023 at 2:46 AM

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Mentioned in this article:

Wealthfront
Portfolio Management System
Top Executive: Andy Rachleff

Betterment, LLC
Financial Planning Software
Top Executive: Jon Stein



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