Traditional financial services firms saw the competition coming and have been introducing their own versions of "robo advisors", to wit -
Vanguard: it rolled out Vanguard Personal Advisor Service offering very attractively priced robo+human-based services.
Fidelity: it announced in early October 2014 that it would offer a white-label version of digital advisory service betterment to its RIA custody clients.
Charles Schwab: it just unveiled its own robo killer - Schwab Intelligent Portfolios - a new online advisory platform that charges no advisory or asset management fees, no commissions and no account fees. It will include automated portfolio management, rebalancing and tax loss harvesting, including low cost ETFs, as well as Schwab funds and other outside products.
TD Ameritrade: it's reported recently that TDA is also considering offering model-based portfolio management, portfolio rebalancing, client billing and online account-opening, in a guest column for Financial Planning.