Wealthfront and Betterment are major players in the Robo-advising space. Both companies make money via advisory fees. And Betterment has additional revenue streams like the service for advisors, the cash reserves, and the checking accounts.
Similarities between Wealthfront and Betterment:
- Robo-Advising: Both Wealthfront and Betterment are major players in the Robo-advising space, offering automated investment and financial advisory services.
- Advisory Fees: They make money primarily through advisory fees charged to their clients based on the assets under management.
- Cash Management: Both platforms offer cash management solutions, with Wealthfront providing cash accounts and Betterment offering cash reserves and checking accounts.
Differences between Wealthfront and Betterment:
- Additional Revenue Streams:
- Wealthfront generates revenue through a line of credits and earns interest on cash accounts in addition to advisory fees.
- Betterment has a more diverse range of revenue streams, including investment plans, financial advice packages, betterment for advisors, betterment for business, cash reserve, and checking accounts.
- Product Offering:
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