8 Emerging Fintech Startups to Watch In 2016
By Zoe Henry
A New York City-based startup that provides automated investment services and personalized advice, Betterment had a record year in 2015. The company charges an interest rate between 0.35 and 0.15 percent, depending on the size of one’s investment.
Headed by founder and CEO Jon Stein, Betterment grew its AUM (assets under management) by 200 percent last year, from $1 billion to $3 billion.
It also rolled out a new, automated 401(k) tool for businesses that gives employers personalized advice on their assets. Participants receive a portfolio of ETFs (exchange-traded funds) and are given the option of opening taxable investment accounts, IRAs, Roth IRAs, and trusts, all of which the tool will manage for them.
Jane Bryant Quinn, a prominent financial journalist and retirement expert, recently sang the company’s praises: “I love these automated financial advisers, and not just for Millennials,” she said. “Betterment is the only one that has an automatic plan for dealing it [your money] out over your retirement. The others will probably get to that eventually, because you really need both kinds of automatic planning.”