(Reuters) - BBVA Compass, a unit of Spain’s BBVA group, said it signed an agreement with BlackRock Inc’s “robo-adviser”, FutureAdvisor, to help expand its automated investment advisory services.
Robo-advisers use computer algorithms to pick a portfolio of exchange-traded funds and charge much lower management fees than traditional brokers do.
BlackRock, the world’s largest money manager with $4.5 trillion under management, bought San Francisco-based FutureAdvisor last year to help it provide financial institutions with technology-enabled advice capabilities.
BBVA Compass, the first big bank to sign on FutureAdvisor, said clients would be able to use FutureAdvisor’s automated investment services in 2016.
The bank’s clients would also be able to link external investment accounts with FutureAdvisor and receive a customized plan for their portfolios, the Birmingham, Alabama-based bank said.
Reporting by Nikhil Subba in Bengaluru