The retirement-focused United Income will now give automated advice as part of Capital One, which is looking to expand its robo-adviser offerings.
Capital One purchased the company for an undisclosed amount after taking a 10 percent stake last year, American Banker reported on Friday (Aug. 16). United Income will maintain its current management team and operate autonomously.
“After much consideration, Capital One emerged as far and away the best option,” United Income CEO Matt Fellowes said in an emailed message to clients, according to the report. “I am proud to announce that United Income has joined Capital One as we seek to scale our solution to serve millions of households in the years to come.”
United Income is a digital platform registered as an investment adviser in Washington, D.C. and serves people transitioning into retirement. Its August regulatory filing shows $746 million in assets and more than 750 accounts.
“As one immediate step forward together, we will be expanding our team, with the intent to accelerate our innovation,” Fellowes said of the acquisition. “However, not much else will change.”
United Income Senior Vice President of Operations Elizabeth Kelly told the publication in an email that Capital One was “impressed with the unique approach United Income has taken within the wealth management space, using a technology-based advisory model to deliver personalized and comprehensive financial planning and wealth management guidance for their customers.”
As part of Capital One, United Income will have access to “resources that will help us scale and continue to innovate and develop accessible digital tools that help Americans plan for their financial future,” Kelly said.
Despite the recent hack and subsequent pending lawsuits, Capital One’s domestic card loans ending balance was $103 billion at the end of the second quarter, an increase of $1.9 billion.
Credit card loans increased 2 percent to $112.1 billion, an increase of $2.3 billion. The net charge-off was 3.48 percent. The bank also reported that non-interest expenses increased 3 percent to $3.8 billion, a jump Capital One said due to a 6 percent increase in marketing and a 3 percent increase in operating expenses.