LendingRobot, the peer lending robo-advisor, announced on Thursday (Oct. 13) a new product connecting to the Lending Club platform, called LendingRobot For Advisors.
In a press release, LendingRobot said the new For Advisors product is built to merge the best of machine-based, high-speed investing with the supervision of registered investment advisors. Financial advisors can now manage all of their client accounts through a single unified dashboard, while leveraging LendingRobot’s algorithmic investment strategies and automated portfolio management. This new product is the result of a close collaboration between LendingRobot and Millennium Trust, which provides custodial services for financial advisors on the Lending Club platform.
“Our goal as a company has always been to empower individual investors in peer lending with the best tools to compete with the ‘big guys’ by automating everything from initial investments, to reinvesting cash returns, to pricing and selling on the secondary market,” said Emmanuel Marot, CEO of LendingRobot, in the press release. “Managing that process to maximize returns within even a single portfolio is a Herculean task. Today, if you are a financial advisor with 30 clients all interested in diversifying with peer lending, that task is next to impossible. Even the best chess players today are a team of two: a computer and a human. This is why we’ve created LendingRobot For Advisors — bringing together the expertise of human advisors with the automation and simplicity of our algorithms.”
LendingRobot For Advisors provides an opportunity to diversify investments, in part due to low interest rates and increasing worries about coming downturns in the stock market. Advisors who sign up for this new product simply create a parent account and then link accounts of clients under their supervision, the company said. Advisors are then able to create unique risk and investment profiles for each client, which, in turn, are managed by LendingRobot algorithms according to each preference. Results and reporting for any individual client, or as a unified dashboard across all client accounts, are available to the advisor. As a part of the strategic relationship with Millennium Trust, client assets remain secure in Millennium’s custody.