Betterment, the digital wealth management firm known for its automated investment services, is expanding its offerings to enter more direct competition with financial giants like Charles Schwab, Fidelity, and Robinhood. CEO Sarah Levy has approved significant strategic changes, marking a shift from the platform’s original hands-off, child-proof model to one that offers greater flexibility and autonomy for investors.
One of the key new features is bridge-borrowing, which allows users to borrow funds against their investment portfolios. This service aligns Betterment more closely with traditional brokerage services that offer margin lending and could appeal to a broader segment of investors seeking both convenience and financial leverage.
In addition to credit options, Betterment is also providing greater investor discretion in managing portfolios, moving away from its previous fully automated, algorithm-driven investment approach. This transition aims to attract more experienced investors who desire more control over their financial strategies while still benefiting from Betterment’s platform and tools.
These developments reflect Betterment’s efforts to evolve its business model and capture a larger share of the competitive retail investing market, positioning itself as a more versatile and comprehensive financial services provider.
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