Citigroup Launches Robo-Advisor

"In just a few minutes, customers can start building a solid foundation for years to come," said John Cummings, head of Citi U.S. Consumer Wealth Management, in a statement. 

David Goldstone, head of research for Backend Benchmarking, which publishes the Robo Report and Robo Ranking, noted that Citigroup is "one of the last major U.S. banks to launch a digital advice service," already offered by JPMorgan Chase, Wells Fargo, Bank of America, U.S. Bank and Morgan Stanley.

Goldstone said the 0.55% account fee is higher than many of Citi's competitors but noted that the account is free for any Citi customer with $50,000 in investors or deposits at the bank.

"Low-cost robo advice is now table stakes for major financial firms," Goldstone said. "Firms who do not introduce wealth management early may run into client pipeline issues as many investors will have an existing relationship in place by the time they are wealthy enough to be attractive to a traditional advisor."

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