The robo-advising firm said families can sign up for Registered Education Savings Plans (RESPs) from home in 10 minutes in lieu of signing up at a bank. Wealthsimple said this will help low-income families and it hopes to reach one million children within 10 years. (The Logic)
Talking point: The RESP market has largely not been disrupted in Canada, even though there’s a lot of money to be made in those investment vehicles. RESP money is tax-free, and the government will contribute up to $7,200 in matching funds. Wealthsimple relaunched its RESPs in March 2017, promising a simpler investing process. Reaching low-income families isn’t just about making the process simpler—although millennial parents may prefer the ease of online services—it’s also about reaching people who typically use fewer banking services. One thing that may help Wealthsimple reach that group is a new partnership, as part of the foundation, with Pathways to Education, an organization that provides scholarships for post-secondary education and mentoring for low-income kids.