How artificial intelligence is transforming the financial industry
More and more, financial firms are turning to machines to do the job humans have done for decades.
Last spring, wealth management firm Charles Schwab launched a new service called Schwab Intelligent Portfolios. The service is unique in that it’s not a person who decides where to invest your money, it’s an algorithm – lines of code programmed into a computer.
“It’s lower cost for the investor,” says Tobin McDaniel, who leads the Schwab Intelligent Portfolios team.
“As opposed to working with a traditional advisor where you might pay up to 1%, here you get portfolio management at essentially no management fee.”
To get started with Schwab Intelligent Portfolios, you answer a short questionnaire aimed at determining your appetite for risk and your investment goals. Algorithms then… Read entire article…