Steinberg says that WorthFM differentiates itself from other robo-advisors through its messaging, which will focus more on building a relationship with clients and educating them about money than it will on account balances. As with the portfolio, the digital platform’s messaging will be tailored to each client’s money type.

“We’re more concerned about the confidence gap than the net-worth gap between women and men,” Steinberg says. “We want to focus more on their motivation to save than on their portfolio’s performance.”

In theory, WorthFM’s education and tailored messaging is more likely to keep women engaged than information about outperformance or downside protection, says Steinberg.

For the same reason, every WorthFM user will be given a portfolio selected from five simple models, and charged the same all-includive 50 bps fee regardless of portfolio composition or assets. Like most roboadvisors, it will focus on small-to-mid-sized accounts, the mass affluent, and the emerging affluent as its primary clients: women with less than $500,000 in investible assets.

WorthFM will launch as a simplified, streamlined tool, Steinberg says, and adjust to the needs and sophistication of its users with a primary goal of increasing their net worth by 30 percent over five years.

“In the long term, we’ll study the specifics of what our customers need and use that as guidance for how we change the platform,” Steinberg says. “We want to look at real data from our users, not simply anticipate and assume what they might want.”
Smith says that some component of human advice may also be included in the future.

As it matures, savers and investors may find that  WorthFM’s underlying algorithms, messaging and responsiveness attracts more than women.

“Women are woefully underserved by the financial services industry, we know that already,” says Neal Quon, CEO co-founder of tech consultant QuonWarrene. “I’m a fan of robo-style options, they’re a good way for someone new to investing and saving to dip their toe in the water. If investors of any type need help making smart decisions, we should be trying to provide them that assistance in any way they can receive it.”
 

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