NEW YORK (Reuters) - Rhode Island-based Citizens Bank said Thursday it is partnering with SigFig, a leading robo-adviser, to help manage the portfolios of the bank’s 1.2 million middle-income retirement savers.
Citizens is the third major bank with a wealth management business to sign a deal with SigFig. Wells Fargo & Co and UBS AG’s [UBSAG.UL] U.S. wealth management unit both announced deals with the digital investment platform earlier this year.
Citizens will roll out the robo offering in 2017 to clients with $100,000 to $2 million in investible assets. Those clients, classified as affluent and mass affluent, can choose from a handful of pre-selected investment portfolios, which SigFig’s software automatically rebalances according to the market.
It is the bank’s bid to get more business from the roughly 52 percent of clients who are considered mass affluent, or have between $100,000 and $500,000 in assets. Those clients will see SigFig’s investment portfolios right alongside checkings and savings account products.
“We think bundling this digital platform with deposit products is a powerful combo,” said John Bahnken, Citizens Bank head of wealth management.
Bahnken said they chose SigFig because the software’s algorithm is malleable and easy to customize for Citizens’ clients.
SigFig received $40 million from investors including UBS AG earlier this year.
Reporting By Elizabeth Dilts; Editing by David Gregorio