RBC to launch robo-platform for advisers with FutureAdvisor

RBC’s American wealth management unit is partnering BlackRock-owned B2B platform FutureAdvisor to launch a robo-advisory platform for its advisers. Through a new RBC Investor Gateway, RBC will perform the role of custodian while FutureAdvisor will provide the advice element of the service. Last month, FutureAdvisor announced deals with BBVA Compass and Saxo Bank.

The Royal Bank of Canada's American wealth management arm is piloting technology from robo-advisor FutureAdvisor.

Bought by Blackrock last year, FutureAdvisor is one of a host of robo-advisor startups disrupting the wealth management market by using algorithms to guide investment decisions.



Having recently struck a deal to give BBVA Compass customers access to its platform, the firm is now also working with RBC Wealth Management-US, which hopes that the technology will help it reach a bigger slice of customers.



Through the new RBC Investor Gateway, the bank will act as the custodian of all client assets, producing statements, trade confirmations and tax documents. Meanwhile, FutureAdvisor will provide personalised digital advice based on a holistic look across a client's portfolio, including when to make investment decisions.



The service will initially be targeted at clients who also want to use automated investment strategies and tools, or those "just beginning to build wealth" and may not need a dedicated human advisor.



John Taft, CEO, RBC Wealth Management-US, says: "Integrating digital advice into our platform will never be a replacement for the deep relationships and high-touch service that our financial advisors provide.



"But we also recognize 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."