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Wealthfront introducing a "Cash" account. Feels like a bit of a response to the Robinhood "checking" account that they had to talk back; interesting that they set it up as a bank sweep.
In terms of the offering: total no brainer, especially if you use WealthFront.
In terms of the offering: total no brainer, especially if you use WealthFront.
Interesting that there was a bit of unbundling of banking services and now the players which did well-ish are starting to do reverse unbundling: Wealthfront gets AUM from e.g. the larger banks then offers this to gain greater share of shorter-term assets.
And the mechanism of the sweep program has to be directing these deposits into banks with a higher cost of funding than what Wealthfront offers, i.e. generally smaller banks, many of whom would otherwise have to build direct-to-nationwide-consumer pipelines to compete for $.
Interesting times as the perceived velocity of consumer-sclae money increases.
(This is happening not so much because ACH windows are shortening, although I will bet you they are, but more because all of your money basically lives on your phone and you're N taps to move it.)
(This is happening not so much because ACH windows are shortening, although I will bet you they are, but more because all of your money basically lives on your phone and you're N taps to move it.)
(Yeah I know technically speaking it is in the cloud just like your data is in the cloud but from an end-user perspective it's on the device that's in your hand 5+ hours every day and instantly responds to your whims like everything else on that device does.)
