Bank of America Corp. plans to introduce an automated investment adviser, the Ministry of Finance reports quoting Bloomberg.
Dozens of employees, working at the bank, are designing the automated investment adviser for Merrill Edge.
Banks will view the robo-advisers, which use algorithms to provide investment advice online and with little or no human contact. Financial institutions would like to check if a disruptive technology can help attract younger investors before they get hooked on a competitor’s platform. Executives at Morgan Stanley, which owns the U.S. brokerage with the most human advisers and Wells Fargo & Co. have recently said they would develop or acquire a robo-adviser.
