Artificial Intelligence

Betterment’s launches tool to optimize cash savings

  • Millennials have 30 percent of their money in savings.
  • Betterment wants its users to make more money on their cash.
close

Email a Friend

Betterment’s launches tool to optimize cash savings

Automated investment advisor, Betterment is rolling out “Two-Way Sweep”, a tool that can automatically “sweep” excess money from customers’ bank accounts into a Betterment account optimized to provide better returns for cash.

What’s behind this new product: Studies show that only one in three millennials is investing in the stock market. That means they’re holding a high percentage of cash. In fact, Betterment sees 30 percent of customers with cash balances of $20,000 on average. This excess in savings earns little to no interest. Betterment’s Two-Way Sweep is intended to take the hesitation out of deploying more money into investments by automating the process.

How it works: Customers can configure Betterment to monitor their monthly spending. The company’s algorithms scan for daily surplus funds in customer checking accounts and automatically sweep excess cash into a Smart Saver account. Smart Saver, launched in August, is a money market account that uses investments in short-term bonds to potentially earn higher returns on cash while still being relatively liquid.

Automating savings is first step to investing: People have a hard time conducting financial tasks. Modern financial apps like Digit, Acorns, and Qapital have made saving as easy as swiping right. With this new product, Betterment has taken the thinking out of savings and investing by automating it. This is the future of autonomous finance.

“We always believed there should be an automated way to make more of idle cash, not only telling you how much money should go into what accounts and towards what bills, but actually performing the task without you even having to move a finger,” said Mike Reust, CTO of Betterment.

“With the launch of Two-Way Sweep, we’re showcasing that automation can help make nuanced day-to-day decisions easy and stress-free so people can focus on their broader financial goals.”

0 comments on “Betterment’s launches tool to optimize cash savings”

Artificial Intelligence

Far from changing banking, chatbots aren’t keeping up with call volumes in the COVID-19 era

  • More financial institutions are using chatbots to handle increased customer service loads precipitated by coronavirus.
  • But, are those chatbots really providing meaningful experiences and value?
Sara Toth Stub | June 29, 2020
Artificial Intelligence, Podcasts

Flybits’ Hossein Rahnama: ’90 percent of digital transformation budgets are spent on managing IT complexity’

  • Banks struggle to provide automated recommendations.
  • Flybits wants to remove the IT complexity that eats away at their time and budgets.
Zack Miller | August 27, 2019
Artificial Intelligence

How Genpact’s AI and predictive analytics helped a Formula E racing team finish in the top 3 all season

  • AI and predictive analytics are being applied with positive results to Formula E racing.
  • Genpact's Armen Kherlopian joins us to discuss how this applies to financial services.
Zack Miller | July 29, 2019
Artificial Intelligence, Podcasts

American Express’ Stephanie Schultz: We differentiate customer service by using a blend of automation and human assistance

  • American Express' Digital Labs wants to make the company a bigger part of its customers' lives.
  • VP Stephanie Schultz describes her team's work with new payments technology and messaging platforms.
Zack Miller | July 17, 2019
Artificial Intelligence, New banks

For South Africa’s first challenger bank, conversational AI isn’t just a nice-to-have

  • TymeBank has launched Max, an AI-powered digital assistant.
  • Developed by Finn AI, Max enables the challenger bank to scale.
Zack Miller | April 02, 2019
More Articles