The news: In its Q3 2026 results—the company’s first earnings report since its IPO—Wealthfront reported its best quarter ever for net transfers from cash management accounts to its brokerage product, a measure of customer stickiness. But deposits fell in December, a negative signal for its cash management business.
Wealthfront also originated its first residential mortgage, kicking off the national rollout of a lending product that deepens its banking ambitions.
Zoom out: Wealthfront’s recent strategy has hinged on a high-yield deposit account that complements its investment products. It markets the account aggressively to incentivize prospective customers to transfer cash to its platform, which they then invest, remaining on the platform even when they sell their investments. The cash management product is exposed to falling interest rates as customers shop around for yield and interest Wealthfront earns from partner banks shrinks.
Wealthfront’s expansion adds a revenue stream, gives customers another reason to stay on the company’s platform, and distinguishes its product line from Betterment’s and Robinhood’s traditional investing products. And by getting into mortgages, Wealthfront is competing against established online lenders like Rocket Mortgage.
Implications for banks: Competition for deposits has shifted from solely creating direct deposit relationships—driven by rates paid on balances and cash incentives—to products that blend basic financial incentives with platform engagement to grow relationship size and share of wallet. One tack for financial institutions that compete directly with Wealthfront is to integrate financial planning, brokerage services, and banking—growing the relationship both for banking and investments.
Whether Wealthfront becomes a major permanent contender for retail deposits remains to be seen. But that specific competitive threat is beside the point as banks face broad-based challenges from fintechs and peers. The immediate lesson is to think in terms of platforms, not just products.