Venture capital dollars have been flowing into online investing platforms, and partnerships are flourishing, making them a success from a business standpoint, says analyst Grant Easterbrook of New York-based research firm Corporate Insight.
But success with consumers has to be measured in terms of whether the algorithm-driven services provide good advice and customer service.
For now, Easterbrook does not think the firms get to know you well enough. “That’s the big problem with the algorithm-based services. They aren’t detailed enough,” he says.