The bottom line is the robo-advisors are looking for different features from their custodians than conventional RIAs, Foregger says. Still, Foregger acknowledges that a traditional custodian might put RIAs and clients at ease. “If all else was equal, the consumer and digital advice players would rather select a traditional custodian but cost issues plus the lack of API capabilities is restricting the digital advice from being able to use the traditional custodian.”

http://www.riabiz.com/a/4977738934910976/as-robo-advisors-rise-a-robo-custodian-in-apex-is-rising-them-a-diamond-mined-from-the-rubble-of-the-penson-worldwide-debacle