Handling finances is a complex task for people. They need solid advice and guidance to maximize their returns and minimize their risks. The traditional finance industry where big banks dominated has been replaced by the Fintech era now. The world is witnessing the entry of new companies and startups that are innovating the fast-growing financial services industry.
Wealthfront is a well-known company that offers automated investment advice for millions of large and small investors. The American platform takes care of multiple aspects like borrowing, homeownership, investing in equity shares and Initial Public Offerings (IPOs), long-term financial planning, and retirement savings.
It was launched in 2008 in California, the USA. Till now, the Wealthfront platform has raised a whopping $204.5 million in funds from venture capitalists across 6 rounds. Moreover, it has 440,000 clients who utilize multiple financial services.
How has Wealthfront changed its business model recently?
Wealthfront is popular for its Robo-Advisor services. It utilizes advanced mathematical algorithms for managing the investments of users. There is no human intervention. All the Robo-Advisors are pre-programmed and they manage portfolios for investors through an auto-pilot mode. The operating costs are very low for robots when compared to the hefty salaries paid to finance managers.
The Wealthfront platform has given more decision-making powers to retail investors in recent times. Hence, they have full freedom to manage their money. Moreover, they need not depend on the automated strategies followed by the Robo-Advisor.
Wealthfront has shifted its focus from modern portfolio management and replaced it with the term “Responsible Investing”. The American company will concentrate more on stability in returns for investors. For instance, both large and small investors cannot deposit all their funds in cryptocurrencies. They will have to put their money in a mix of cryptos and stocks.
The Wealthfront will immediately rebalance the portfolio of users and inform them about the changes in the overall risk levels. It handles a whopping $50 billion in assets deposited in brokerages.
Ultimately, Wealthfront must pay attention to fulfill the long-term financial goals of investors. Customers should make the right investment decisions according to the market conditions. Hence, the Wealthfront platform permits investors to customize their portfolios as per their preferences.
Above all, the American fintech company will focus on becoming a full-fledged neo-bank instead of competing with discount brokerage platforms.
Wealthfront has to protect the rights of investors since it is registered with the Securities and Exchange Commission (SEC). Besides that, it has to divert $21.5 million in assets managed by its Robo-Advisors due to its entry into retail trading.
The Wealthfront investment platform has also allowed users to put their money in Environment, Social, and Governance-friendly (ESG) funds and Exchange Traded Funds (ETFs).
Wealthfront will concentrate on its core services like asset management, holding funds under custody, in-house clearing and settlement, hedge fund management, and risk parity fund management.
Entrepreneurs aiming to transform the global financial services sector can develop an attractive app like Wealthfront. Our skilled developers create smoothly operating Android and iOS apps for both large and small investors.
We also offer a modern web panel to share information about new features and software updates. A robust admin dashboard helps in the quick registration of new users and monitors the day-to-day business operations efficiently.
What are the fabulous features of our Wealthfront Clone?
Acceptance of numerous payment methods – Our Wealthfront clone allows investors to deposit their hard-earned money through various payment methods. Investors can process transactions through Apple Pay, Cash App, Google Pay, net banking, PayPal, Venmo, and wire transfers.
Digital Banking tools – An app like Wealthfront manages funds efficiently like a bank. Investors get advantages like the absence of overdraft fees, direct deposit options, easy payment of bills, integration of debit cards with several ATMs, protection against risks from the Federal Deposit Insurance Corporation (FDIC), and zero account management fees.
Disbursal of Loans – Our Wealthfront clone app distributes short-term loans to eligible borrowers immediately at a low interest rate. The Portfolio Line of Credit (PLOC) maximizes financial flexibility for customers. The loan can be utilized for paying bills, emergencies, installments, and taxes.
Investors benefit from the absence of a credit check, flexible interest rates depending on the size of the account, and quick approval of loans within just 1 working day. In the long run, opting for the PLOC is affordable than applying for a personal loan from a bank or holding a credit card. We reduce various risks related to interest rates, liquidation, and margins.
Diversified Portfolio Dashboard – It shares real-time information with investors about the percentage of investment in numerous financial assets and the total amount. The Diversified Portfolio dashboard shares eye-catching pie charts reflecting statistics of their investment in the form of corporate bonds, dividend stocks, foreign stocks, municipal bonds, real estate, and treasury inflation-protected securities (TIPS).
Self-Driving money – It is an automated budget tool that assists in building savings for investors, ensuring the availability of money for emergencies, long-term and short-term allocation of funds in various financial assets.
Salaries earned by employees will be automatically deposited into an app like Wealthfront. It will invest in certain financial instruments based on the goals of investors and their lifestyles.
The focus will be on increasing funds in the customer’s Individual Retirement Account (IRA). The Self-driving money tool uses the power of Artificial Intelligence to successfully achieve the long-term financial goals of investors.
Tax-Loss Harvesting mechanism – It refers to the quick selling of securities that have incurred a huge loss in the market. Hence, investors need not pay any tax on capital gains or earned income. It replaces the sold financial asset with another alternative to ensure no variation in after-tax returns.
Wealthfront Cash Account – It offers incentives like cash back, free deposits, and hassle-free withdrawal of money from ATMs. The Wealthfront Cash account enables easy payment of monthly bills like food, fuel, rent, and other miscellaneous expenses.
Investors can allocate a certain percentage of funds for the down payment (credit purchases), emergency circumstances, and vacation.
Wealthfront Investment Account – Users of our app like Wealthfront can accumulate enormous wealth in the long run by opening an Investment Account. They get a tailor-made portfolio enabled with automatic transfer of funds after receiving the monthly paycheck.
The Wealthfront Investment Account reduces the overall risk by putting money in a variety of companies and industries. Investors just need to pay an advisory fee per year. They benefit immensely in the absence of fees for account management and trading.
Students can utilize a College Savings Plan recognized as Qualified Tuition Plans under section 529 of the Internal Revenue Code (IRC). There are other options like an Individual Retirement Account (IRA) that assures tax-free growth and withdrawals. Users can also set up different accounts like individual, joint, and trust.
Safeguarding of funds by the SPIC – Investors are guaranteed the safety of their funds through deposit coverage provided by the Securities Investor Protection Corporation (SPIC). It has separate limits for cash and stocks.
What is the budget to Develop An App Like Wealthfront?
The total cost of creating a customized Wealthfront clone app depends on numerous facets. It depends on the choice of basic and premium features, hourly charges paid to the front-end and back-end developers, multi-platform compatibility, the selection of frameworks and technologies, and the time taken for development.
Moreover, entrepreneurs have to incur expenses for our post-deployment services. We offer in-depth fixing of bugs and glitches, maintenance, software updates, technical support, and third-party API integration.
Importantly, Wealthfront will have to deal with heavy competition from other investment platforms like Altruist, Betterment, Robinhood, and SigFig. It should handle extreme market volatility in the future after allowing investors to put their money on cryptocurrencies. Above all, the Wealthfront platform will try to attract more millennials and the Gen Z population to strengthen their wealth in the long run.
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