The unit will provide financial institutions platforms and other advisory firms) with technology-enabled investment advice capabilities – particularly those targeting the mass-affluent sector, which accounts for 30 per cent of total US investable assets.

FutureAdvisor provides advice that takes into account clients’ brokerage, IRA and 401 accounts; tax-efficient portfolio management; mobile and web applications; online account enrolment; and multi-custodian support.

Robert Goldstein, chief operating officer and global head of BlackRock Solutions, reportedly told the Wall Street Journal that clients were approaching the platform looking for help serving investors who didn't have enough savings to meet the investment minimums required to work with a financial advisor.

“As demand for digital wealth management grows, we believe that our combined offering will accelerate our partner firms’ abilities to serve the mass affluent in a convenient, scalable way,” said Tom Fortin, head of retail technology at BlackRock.

Despite concerns over the potential for “robos” to dilute the value of in-person, high-end financial advice, it has been observed that many advisors are actually embracing the competitive pressure

The transaction, the terms of which were not disclosed, is subject to customary closing conditions and is expected to close in the fourth quarter of 2015.

FutureAdvisor ranks fifth in AuM terms among 12 robo-advisor startups tracked by Aite Group - topping the list are Betterment and Wealthfront, the Wall Street Journal noted.

At June 30, 2015, BlackRock’s AuM was $4.721 trillion.