JPMorgan Chase is launching a new robo-adviser as it makes another play for Millennial online investors.
The company said Wednesday that it will offer digital investment portfolios as part of its You Invest service, which debuted last year.
Robo-advisers, or digital platforms that provide automated investing services, are becoming more popular, especially as passive investing catches on.
Customers need at least $2,500 to open a portfolio. After entering their risk profile, time horizon and investing goals, they’ll be matched with a selection of JPMorgan ETFs. The annual advisory fee is 0.35%.
You Invest, which offers free stock trading, has allowed JPMorgan Chase to go up against discount brokerages such as Charles Schwab, TD Ameritrade and E*Trade.
Its new robo-adviser will compete with products from companies like Morgan Stanley and Wealthfront.
JPMorgan, the largest US bank, provides services to about 61 million American households. It’s looking to strengthen its relationships with those customers, 50 million of whom use mobile or online banking services.
It’s also going after Millennials, a potentially lucrative demographic that’s in the process building wealth and could use more of the bank’s services down the line.
Some of the bank’s online efforts haven’t panned out. Finn, its mobile-only banking app for Millennials, lasted just a year after it was rolled out nationally.
The company is currently moving Finn customers over to its Chase app.