NEW YORK (Reuters) - LPL Financial Holdings said on Wednesday it will use BlackRock Inc technology to provide a digital platform, called a robo-adviser, which can automatically build investor portfolios online based on a series of questions.The product will be rolled out in phases in the second half of the year, LPL spokeswoman Lauren Hoyt-Williams said.
She declined to disclose the financial terms. BlackRock could not be immediately reached for comment.
BlackRock, the world’s largest asset manager, in August acquired FutureAdvisor, which provides the technology to banks, brokerage firms, insurers and 401(k) plans.
Robo-advisers allow the companies to use algorithms to manage money for clients at a lower cost than with human advisers.
Leading robo-adviser providers include Betterment, Wealthfront and discount brokerage Charles Schwab, which are competing to use digital platforms to attract investors who may not meet fund managers’ minimum asset requirements for human advice. BlackRock Chief Executive Larry Fink said in August he believed every major asset manager would eventually need to offer a robo-advice product.
Reporting by Tariro Mzezewa; Editing by Richard Chang