California-based Fintech Wealthfront, a Robo-Advisor that had been focused on becoming a digital bank, has revealed that its checking account features are now live for the Wealthfront Cash Account.
In statements shared with Crowdfund Insider, Wealthfront’s management noted that they’re on track to deliver what they had promised their customers. The company recently began emailing Wealthfront clients to inform them that they can upgrade their accounts.
Wealthfront clients will now be able to set up direct deposits for their paychecks and may get paid two days early. They can also set up direct deposits for tax refunds, company reimbursements, and other payments.
The company’s customers can easily pay bills and set up automatic payments that can be paid from their Cash Account. Clients may use Square’s Cash App, Venmo, and PayPal to complete transactions.
Wealthfront customers now have the option of adding a debit card to their Cash Account to make purchases and make cash withdrawals from a nationwide network of ATMs without paying any fees.
Wealthfront describes itself as a next generation banking service.
The company states:
“We help you manage your money for both your short-term and long-term goals by providing a cash account with a [competitive] APY, … automated investment management, and free financial advice, anytime you want it.”
Wealthfront confirmed that it entered the banking space with the launch of its cash account that was offering an interest rate that was “5x greater than the national average.” However, this may have changed following the COVID-19 outbreak and resulting economic challenges.
The company told CI that it decided to “forego a big press launch in light of current events.”
However, the company claims that it has experienced significant growth and reportedly manages around $20 billion in total client assets.
In March 2020, Wealthfront said it aims to focus on money management as the world’s financial markets have been crashing due to the coronavirus (COVID-19) pandemic.
Passive investing strategies, like those offered by Wealthfront and other Robo-advisors, have taken a major hit. Advisors are now turning to more active fund management strategies.