8 Best Personal Finance Apps: Opportunity or Threat For Asset Management Companies?

FutureAdvisor

The first on our list of best personal finance apps is FutureAdvisor is another robo-advisor that automates portfolio management based on clients’ risk aversion. The app allows users to manage various accounts such as educational savings accounts that help parents save money to cover their kids’ college tuition fees. Similar to the previously mentioned automated portfolio management apps, FutureAdvisor invests in low-cost ETFs and index funds.

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Conclusion: The popularity of financial management apps has not gone unnoticed by larger financial companies. For example, Bank of America Corp (NYSE:BAC) has launched a “Keep the Change” service that operates in a similar way to Acorns, though the service only transfers the excess change into a savings account. Wachovia bank has “Way2Save”, which also transfers a small amount (under $1) to a savings account from every debit or credit card purchase. In addition, the attractiveness of automated financial advisors like WealthFront and Betterment, especially among millenials, has caught the interest of some large asset management firms such as BlackRock, Inc. (NYSE:BLK), which in 2015 announced plans to buy FutureAdvisor for a reported $150 million.

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