Palo Alto, Calif.-based Wealthfront announced on Tuesday that it is expanding its banking capabilities to encompass more checking account features, including a debit card.
Wealthfront launched as a roboadvisor, an automated investment service, in 2008, and has gradually expanded its services since to encompass elements of banking, personal financial planning and financial wellness.
"The retail branch-heavy model used by traditional banks is broken and the recent shelter-in-place orders exacerbated the existential threat banks face," said Dan Carroll, co-founder and chief strategy officer of Wealthfront, in released comments. "Customers are waking up to the fact that mobile bank apps are just ATMs on your phone and they are demanding better solutions even louder than before. We've launched these features just in time to fill that void and are confident that we'll soon be the main financial relationship for our audience."
Now, users of Wealthfront’s mobile app can set up employer direct deposit with the option to get paid up to two days early, and direct deposit for other payments like tax refunds and company reimbursements.
Users can also use Wealthfront’s application to set up automatic payments for utilities, mortgage, rent or cable directly from their cash account. The account will also integrate with other applications like Cash App, Venmo and PayPal to allow users to pay their friends and others.
Wealthfront’s new debit card can be added to its cash account for purchases and withdrawals from a nationwide network of fee-free ATMs.
Current users of Wealthfront who have uninvested cash in their account can begin adding these features to their accounts starting Tuesday. The company claims its Wealthfront Cash Account offers five times more interest than the national checking average, and comes with $1 million of FDIC insurance offered through the company’s partner banks.
Wealthfront’s move comes as more fintech users seek an all-in-one destination from which they can manage their personal finances. Moving forward, the company plans to enable its users to automatically and seamlessly deposit checks, pay bills, contribute to an emergency fund and retirement accounts, and then deposit the remainder of their earnings into tax-efficient investment accounts.
"Our clients are anxious for Wealthfront to become their primary financial relationship and offering checking features puts us in that position," said Andy Rachleff co-founder and CEO of Wealthfront. "Our self-driving money features will be able to route their hard earned money to the most appropriate investment vehicles as soon as it hits their account. It's exciting to see our vision of every dollar earned being optimized come to life."
The new checking features are being offered via Wealthfront’s partnership with Green Dot Bank.