The rich are already using robo-advisers, and that scares banks

New York

BANKS are watching wealthy clients flirt with robo-advisers, and that's one reason the lenders are racing to release their own versions of the automated investing technology this year, according to a consultant.

Millennials and small investors aren't the only ones using robo-advisers, a group that includes pioneers Wealthfront Inc and Betterment LLC and services provided by mutual-fund giants, said Kendra Thompson, an Accenture plc managing director. At Charles Schwab Corp, about 15 per cent of those in automated portfolios have at least US$1 million at the company.