The firm noted that many RIA and broker-dealer firm leaders plan to embrace digital advice by incorporating it into their existing businesses or partnering with a digital advisor (56 per cent), according to recent research it carried out.

Betterment Institutional provides tax-efficient portfolio management, automated billing and reporting, paperless onboarding, web and mobile apps, technical support and “bank-level” security. Crucially, clients can see their firm's brand and access contact information within the client portal.

The new funding also included repeat investors Bessemer Venture Partners, Menlo Ventures and Anthemis Group, according to the Financial Times.

Jon Stein is the founder and chief executive of Betterment.