Wealthfront is moving into lending, enabling customers to borrow against their investment accounts.
The robo-adviser’s new line of credit service enables clients who have at least USD100,000 invested through the firm to borrow up to 30% of their account value.
This positions the firm to compete more closely with traditional wealth managers.
As well as being fast and hassle free, without the need for any paperwork, Wealthfront said the interest rates for the news service are between 3.25% and 4.5% - below alternatives.
This is because the credit is secured against the borrower’s own investments.
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