Wealthfront and Betterment prepare for next phases of growth

Betterment and Wealthfront, two early robo-adviser startups that ushered in a wave of automated investment tools more than a decade ago, are preparing to expand their market share and scale more quickly.

Why should we care?
This week, Betterment Founder and first CEO Jon Stein stepped down, allowing Sarah Levy, a former COO for Viacom Media Networks, to take the reins as CEO. Meanwhile, Wealthfront appointed former Federal Deposit Insurance Corporation (FDIC) Chair Sheila Bair, and former Comptroller of the Currency Thomas Curry to its newly formed Banking Advisory Group. Wealthfront and Betterment are making strategic choices about their future paths. Both companies have grown their assets under management beyond the $20B mark, and incorporated a range of services encompassing investing, banking, and other financial planning capabilities. For Betterment, the leadership shakeup comes as it reportedly plans to go public. Meanwhile, for Wealthfront, the Banking Advisory Group will help it navigate regulatory and partnership efforts as it strives to develop what it calls a "nextgen banking service."