BBVA Compass said it is teaming up with FutureAdvisor to offer robo services to its clients later this year. This deal is a way for the bank to expand its client base by attracting digital-savvy customers who aren't currently using its investment services, it said in a press release.
It also is touting the level of hands-on management that clients will enjoy. "The ultimate goal here is to help our clients take greater control of their finances so they can build bright futures," said Compass Chairman and CEO Manolo Sánchez in a press release.
BBVA has 672 branches in the South and Southwest and is the first bank to offer the service of FutureAdvisor since the robo was acquired by BlackRock last year. Indeed, Blackrock was especially interested in signing that deal so it could do just that: take digital investment services to the bank channel, according to industry reports at the time. The buzz around the deal last year cast the acquisition of FutureAdvisor, which has about $700 million in asset under management, as a major stepping stone in the validity of robos.
In 2014, BBVA, the Spain-based parent of BBVA Compass, also acquired Simple, another digital company that streamlines the process for bank customers to send and receive funds. That deal, reportedly for $117 million, offered a way for BBVA to increase its presence in the U.S.
BBVA Compass declined to share any projections on the number of clients or assets under management that FutureAdvisor may add to its business.