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Fidelity Reports Web Issues Day After Robo-Adviser Sites Crash

Fidelity Reports Web Issues Day After Robo-Adviser Sites Crash
(Ken-Wolter/Dreamstime)

Tuesday, 06 February 2018 12:51 PM

Fidelity Investments reported intermittent technology issues with its website a day after robo-advisers struggled in the market rout.

The websites of two of the country’s biggest robo-advisers -- Wealthfront Inc. and Betterment LLC -- crashed on Monday as the S&P 500 Index sank. Complaints quickly spread across Reddit and other Internet sites from people who had trouble logging onto their accounts. “Really?” wrote @jlpatel23 after he received a message from Wealthfront saying its site was down.

On Tuesday, Fidelity customers faced some difficulty accessing the firm’s home page. Michael Aalto, a company spokesman, confirmed the issues in an e-mail. The Dow Jones Industrial Average fell more than 500 points at the open of trading before covering some losses.

The glitches at the robo-advisers represent a setback for a niche of the financial market industry that has been booming as people have become more comfortable making investment decisions without speaking to human advisers. Incumbent online brokerages Vanguard Group and Charles Schwab Corp. also reported outages on Monday.

Lost Access

Wealthfront acknowledged in a statement that its clients lost access to their accounts for “a short period of time today” and said it’s working to ensure that “clients don’t experience this again.”

Betterment clients "experienced log-in issues for approximately 30 minutes this afternoon," Joe Ziemer, a company spokesman, said in an email. "Accounts were secure throughout and portfolio management activities like rebalancing and tax loss harvesting continued."

At Vanguard, "some clients may have experienced sporadic difficulty accessing their accounts" online and by phone, spokeswoman Emily Farrell said in an email. Increased demand delayed logons for some clients at Schwab "for a few minutes," said spokeswoman Mayura Hooper.

Assets at four top robo-advice firms almost doubled last year to a combined $150.2 billion, according to data compiled by Bloomberg.

© Copyright 2018 Bloomberg News. All rights reserved.

   
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Fidelity Investments reported intermittent technology issues with its website a day after robo-advisers struggled in the market rout.
fidelity, web, robo, adviser, sites, crash
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2018-51-06
Tuesday, 06 February 2018 12:51 PM
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