The tech world couldn't help but react to Wealthfront CEO Adam Nash's accusations of competing robo-advisor Betterment's treatment towards its' users. Nash made it a point to respond to various Twitter comments regarding his post, which created an even further stir and questions regarding Wealthfront's status in the market. Some feel that Wealthfront is losing clientele and deploying aggressive marketing tactics to recapture its leadership position.
From a behavioral economist’s perspective, this $3 fee is a fantastic way to incentivize customers to adopt a dollar-cost-averaging investing strategy of regular periodic deposits, a highly-regarded investing approach. Mr. Nash’s campaign amounts to a PR stunt, misleading the investing public for the sake of company profits. Off the top of my head, I can’t think of any other tech CEO directly attacking its competition with this type of vindictive bomb-throwing. Is Adam Nash simply following a well-tread plan of attack in a rapidly growing new market?