“The arrival of mobile computing, social media, digital payments, and web-based, face-to-face communications like Skype have radically changed the way people buy products and interact with organizations. Not surprisingly, these technologies have created opportunities for disrupters to enter the sector with low-cost, focused offerings unencumbered by legacy business models. In the United States, for example, Walmart has introduced reloadable pre-paid offerings that act like checking accounts. PayPal and Bitcoin are now enabling payments outside the banking system. Covestor links individual investors with portfolio managers who meet their investment needs.”
In a recent Smarter Investing blog post, Spark Capital general partner Todd Dagres wrote that online investment advisers like Covestor have the ability to make a significant impact on the wealth management industry as we know it.