Retirement accounts are supposed to represent the future, but for many investors the experience still feels stuck in the past: There’s still forms, signatures and slow money transfers – reminders that IRAs remain surprisingly analog, despite fintech innovation. Moving money from point A to point B means withdrawals and deposits, as well as tax withholding that often require tedious, manual processes. In this corner of financial services, it’s modern trading tools versus outdated retirement workflows.
Chicago-based brokerage TradingBlock says it wants to eliminate that friction entirely. With the launch of full online cash-management features for qualified IRA brokerage accounts, TradingBlock says its users can now digitally deposit, withdraw, schedule transfers and manage tax withholding. Integration with external financial institutions allow for easy transfers, the company said.
The upgrade effectively turns IRAs into something closer to modern fintech accounts, according to TradingBlock. Functionalities include scheduled transfers and automation, compliance with federal/state tax withholding requirements and the removal of paperwork and manual forms. These features, when placed into real-world situations, could mean hours of saved time per user, who can focus more on their investment and trading goals.
“Our goal has always been to eliminate the friction investors face when building their financial future, whether they are trading stock, leveraging options or managing their retirement assets,” said TradingBlock Vice President of Market Strategy Michael Martin. “In bringing fully digital cash-management tools to our IRA clients, we’re providing them with the control, convenience and automation they need to manage their assets with confidence.”
The IRA tools also arrive as TradingBlock undergoes a larger transformation. The firm recently joined Nant Global Financial, enabling TradingBlock to participate in a blockchain-enabled capital markets ecosystem. The move opens the gates to future possibilities for the firm: tokenization and new settlement infrastructure.
For active traders and long-term investors alike, the shift points to a larger trend: retirement accounts are finally catching up to the rest of fintech. Amid a growing expectation of fully digital asset management, automation and compliance may no longer be nice-to-haves, but a must-have that’s integrated into retirement account services.
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