Truist expands digital offerings with new robo-advisor, hybrid investment platform

Truist is the latest financial services entity entering the robo race.

On Monday, the Charlotte, North Carolina-based bank announced the launch of two new products with the goal of beefing up its digital investment offerings.

Truist Invest, a robo-advisor, and Truist Invest Pro, a hybrid investing solution that combines automated investing with access to a team of financial advisors, are both available from the $545 billion-asset bank now.

With at least $5,000 in tow, clients can open a Truist Invest or Truist Invest Pro account online. Clients will then be able to access account details and monitor their activity via Truist online banking and the Truist mobile app.

Annual fees for the products are 0.50% for Truist Invest and 0.85% for Truist Invest Pro, calculated based on assets under management. There is a $90 per account annual minimum.

Joseph M. Thompson, chief wealth officer at Truist, said the tech tools are an example of Truist's strategy "which combines the client's preferred level of personalized touch and innovative technology to create trust.

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"Truist Invest and Truist Invest Pro provide simple and secure access to a portfolio that is purpose-built to help an investor achieve their goals and is backed by our investment expertise that can help individuals and families build better lives," Thompson said in a statement.

Officials said Truist Invest works by identifying client goals, risk tolerance and existing investments to create tailored portfolio recommendations. Once an account is opened, clients receive daily portfolio analyses, which can open the door to opportunities for automated rebalancing and tax-loss harvesting. 

Clients can also make changes to their preferences on demand to adapt to their changing financial situations and needs.

Truist Invest Pro, meanwhile, blends that automation with human know-how, officials said. In addition to all the features of Truist Invest, Pro clients gain unlimited access to a team of registered financial advisors who can help build a personalized portfolio and provide more traditional investment advice.

"Investors want digital solutions that are secure, intuitive to use and able to help meet their needs whether they are a new or experienced investor," Kacy Howard, senior vice president of digital investing at Truist Wealth, said in a statement. "Truist Invest and Truist Invest Pro can help give clients control and confidence in their portfolio whether they choose a fully digital or hybrid solution to invest in their future."

The announcement comes as the industry assesses what separates the best robo advisors from the rest. Earlier this month, Condor Capital Wealth Management published the ninth edition of the Robo Ranking. The report gave top honors to SoFi, Wealthfront and Fidelity for the depth of their offerings, and for strong long-term performance. 

Thomas Leahy, senior financial analyst of Condor Capital Wealth Management, told Financial Planning most of the highest-ranking robos provide access to advisors, much like Truist Invest Pro promises. 

But it remains to be seen if their new offerings will earn Truist a place on the list in the future. Along with performance and a human touch, Leahy also said the best robos are the ones that excel at enhancing digital planning and provide a painless user experience. 

The news also caps a busy summer for Truist Wealth. In June, the bank's wealth management arm moved into the Chicago market with the addition of a 10-person team in the Windy City.

Truist Wealth now operates in nine of the 10 largest U.S. markets. The wealth management team in Chicago offers financial planning, investment management, risk management, banking and other services to affluent and high net worth individuals, families and business owners, according to the company. 

Truist described its wealth management push into Chicago as being complementary to its existing footprint, saying that the corporate and investment banking unit and the wealth unit can together support business owners' professional and personal financial needs.

Truist gets about 10% of its revenue and about 15% of its noninterest income from the wealth business, according to a company presentation delivered at the time of the Chicago announcement.