With $3.5 billion in assets and 17 branches, Cambridge Savings Bank isn’t an obvious example of a cutting-edge financial institution.
But this Massachusetts-based bank has taken a leap into the future by integrating an automated investment platform into its regular offering of checking and savings accounts. It is one of the first small institutions to adopt a robo-investment service for its customers.
The move to partner with SigFig came at a time when Cambridge was searching for ways to engage young adult customers who want easy access to financial products through mobile devices.
“They want stuff fast and personalized and intuitive and at the right value,” says Wayne Patenaude, president and CEO.
The bank, which previously didn’t have any investment offerings for its customers, had considered several strategies before settling on a deal with SigFig. Because it wasn’t in the business of providing investment advice, Cambridge didn’t have to figure out how the new service would mesh with a traditional investment platform.
Cambridge has fully integrated the robo product into its banking platform, allowing customers to seamlessly transfer money between the investment accounts and their other accounts. The entire service can be accessed from one screen, whether it is on a PC or a mobile device.
Cambridge is pitching the service in its branches and is training staff members to introduce customers to the product.
“You have to be careful with the regulations about what employees can and can’t say to a customer,” says Mr. Patenaude, who has been the bank’s CEO for five years. Licensed SigFig representatives also are available to talk with customers in electronic face-to-face meetings.
He expects other banks to pursue similar strategies, regardless of their size.