Effective immediately, Wells Fargo's (NYSE:WFC) Intuitive Investor service is cheaper and more accessible. The bank announced on Monday that it's reducing its fees for the service, which is an automated investing platform augmented by access to human advisors.
The new annual advisory fee for Intuitive Investor is 0.35% of assets under management (AUM), and the minimum for those assets now stands at $5,000. Customers who link their account to a Wells Fargo premium checking account get an additional break, with their fee dropping to 0.30% of AUM.
Previously, Wells Fargo's threshold for the service was $10,000 in assets, and it charged a fee of 0.50%.
The bank said its minimum and fee adjustment was done "to help emerging affluent clients start on their investment journey earlier."
Intuitive Investor is one of a growing number of so-called "robo-advisor" services that harness advances in automated financial technology. They have become popular to the point where they are nearly commonplace among financial services companies and even banks. As the space gets more crowded, it's becoming more competitive.
Wells Fargo rolled out its service in 2017. After an evaluation of financial status and goals, investors are slotted into one of nine portfolio strategies, each one designed by the bank's strategy and research division. Customers can pick from a variety of account types, which include popular retirement accounts.
On Monday, Wells Fargo's share price slumped by 5.3%. That fall was steeper than the losses for rival big bank stocks and the broader equities market.