Bank Watch

Former Bank of America exec launches investment tool for women

Sallie Krawcheck, a former Bank of American executive, this week launched a ‘robo-adviser’ investment tool, Ellevest, tailored for women. Krawcheck will serve as CEO of Ellevest.
Sallie Krawcheck, a former Bank of American executive, this week launched a ‘robo-adviser’ investment tool, Ellevest, tailored for women. Krawcheck will serve as CEO of Ellevest. Getty Images for TechCrunch

Since stepping down from running Bank of America’s two wealth-management units in 2011, Sallie Krawcheck has turned her focus to helping other professional women get ahead. Her latest initiative toward that goal: a digital investing platform catering to women.

The former Wall Street-executive-turned-entrepreneur launched the platform, Ellevest, this week. It will be a “robo-adviser” – an online company that uses computer algorithms to manage portfolios for clients. Robo-advisers have become increasingly popular in recent years in part because they promise to provide services at a lower cost than human wealth managers.

In explaining the need for Ellevest, Krawcheck told CNBC Wednesday the platform takes into account factors specific to women. For example, their salaries tend to peak earlier in their careers compared with men and women tend to live longer, she said.

“As a woman, you have a different earnings trajectory, and you think about risk differently. You’re much more risk-aware than the men, Krawcheck, CEO and co-founder of Ellevest, said.

Ellevest is the latest venture for Krawcheck since leaving her post as head of Merrill Lynch and U.S. Trust in a restructuring under Bank of America CEO Brian Moynihan.

Krawcheck, a UNC-Chapel Hill graduate, in 2013 bought a women’s networking group called 85 Broads and renamed it Ellevate Network, which launched a Charlotte chapter last year.

Last month, she was in Charlotte for an event celebrating the chapter’s first anniversary.

Deon Roberts: 704-358-5248, @DeonERoberts

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