Robo-advice

Introducing Robo-advice

For some, receiving financial advice when investing money is crucial.

Designed to deliver universal access to good financial advice, RDR had the polar opposite effect, leaving millions in an ‘advice gap’.

Big business in the States, automated, or robo-advice, is set to boom in the UK with a number of recent launches and many more in development.

The FCA is to encourage ‘online automated advice models that have the ability to deliver advice in a more cost-efficient way’ and thereby revolutionise mass market savings and investment.

Online advice can be quicker, cheaper and accessible; those less confident about DIY investing may eschew traditional advice for a platform that delivers a ready-made investment portfolio.

About Robo-advice

 

Quick – robo-advice platforms are designed to make investing as easy as possible; automated advice platforms are based on efficiency, aiming to deliver high quality financial advice in the least time possible.


Simple
– robo-advice platforms make maximum use of technology to make things as simple as possible. Online technology is the enabler for the new raft of investment platforms with everything available via a laptop or smart phone. 

Transparent – cost is an important factor in the successful outcome of any investment strategy; robo-advice platforms tend to have simple and transparent fee structures.

Traditional advisers may provide a more bespoke service, with complex pricing; a robo-adviser aims to provide a straight forward service with a straight forward cost.

Accessible – robo-advisers have no high minimum investment requirements; a low cost, online business model means lower minimum investment amounts for clients, providing access to the many millions precluded from financial advice.

Engaging – robo-advice web sites are attractive, simple and engaging; an online account with an up to date valuation of your portfolio is always available.

Human – in contrast to the ‘robo’ moniker, most providers will have advisers on hand to speak to clients directly when required to deliver reassurance or guidance.

Human interaction can be by telephone or webchat so the client experience is unlikely to be purely online; platforms provide as much or as little direct contact as is required because even robo-advised investors are individuals.

 

Introducing Moo.la

Can Risk be Predicted?

Achieve Better Performance Through Risk Management

Introducing Charles Schwab Intelligent Portfolios

Introducing Swanest – Automated Investment Advice

Introducing Wealth Horizon – online investment advice

Introducing MoneyFarm

Introducing Nutmeg

Introducing: ETFmatic

Introducing Scalable Capital

Introducing Wealthfront

Introducing Betterment

Introduction to Robo-advice

Nutmeg TV Advertisement

What is Robo-Advice?

14th


Dec

Moola Partners with iShares to Deliver Automated Advice

Fintech startup will deliver portfolios of 'Core' ETFs to retail investors and advisers

Read More

2nd


Dec

Wealth Managers Embrace Robo-advice as an Incubator Service

Another of the big guns turns to automated advice as Brewin Portfolio Services Launches

Read More

22nd


Nov

Micro-investing: Just Don’t do Nothing

DIY Investor looks at the way wealth mangers are trying to engage millennials

Read More

31st


Oct

Financial Advisers Join Fintech Revolution

advisers are now eagerly embracing fintech to improve operational efficiency and deliver a more

Read More

10th


Oct

UBS Joins the Robo-advice Party with SmartWealth

Banking 'Big Beast' launches new platform in £1b drive to attract younger clients

Read More

7th


Oct

Tough Nut to Crack

Losses hit £9m at Nutmeg despite increased revenues

Read More

27th


Sep

Robo-advisers Stake Their Claim as Active Meets Passive at Money Farm

Land grab as robos find their niche - platforms vary in terms of sophistication and target

Read More

13th


Sep

‘Monster’ Robo-advice Tool Unleashed

What's that coming over the hill? Looks like an automated pension advice platform.

Read More

12th


Sep

Fintech Boom: RiskSave hits Target in Just Four Days

disruptive technologies set to fundamentally change our relationship with banks, asset managers and

Read More

12th


Sep

Robo-advice Boost to ETFs

ETF industry to be transformed by the proliferation of digital investment managers or robo-advisers

Read More

1st


Sep

Boxing Clever – App Introduces Millennials to Savings and Investment

Moneybox launches smartphone app to allow users to invest 'change'

Read More

19th


Aug

New Robo-adviser Munnypot ‘Like Nothing Else on the Market’

WhatsApp-style Adviser Seeks to Address 'Sky-High-Fees'

Read More

5th


Aug

Scalable Capital Opens for Business

Risk based platform brings digital investment management to the UK

Read More

29th


Jul

Welcome to the Machine

Robo-advice is 'Democratising Wealth Management' says Scalable Capital's Adam French

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25th


Jul

WHO IS ROBO-ADVICE AIMED AT?

The technology is on its way but will early adopters be Millennials or existing investors?

Read More

24th


Jul

The Rise of the Robots – ‘no Threat to Advisers’

Will robo-advice spell the end for traditional advisers, or a new beginning?

Read More

16th


Jun

One Small Step – or is Robo-Advice a Paradigm Shift?

Unquestionably disruptive, have robo-advisers torn up the asset management rule book and delivered

Read More

27th


May

Robo-Investing Europe 2016 – the Disruption Begins in Earnest

The first conference in the UK dedicated to robo-advice and digital wealth management

Read More

18th


May

Are Banks and Investment Houses Facing Extinction?

As the world economy edges towards low inflation and low growth, Mark Pearson looks at the forces

Read More

11th


May

Survey Suggests Robo may Only Partially Address the Advice Gap

Post RDR millions have no access to financial advice, but however necessary, the solution may be

Read More

17th


Apr

Robo-advice: the Future of Mass Market Savings and Investment?

As FCA lends support to automated advice platforms, robo-advice ready for take off in the UK

Read More

9th


Apr

FCA Supports ‘Incubator’ for Robo-Advice

Specialist advice unit to encourage development of automated advice platforms

Read More

14th


Mar

Cutting the Cost of Advice

FCA seeks to encourage universal access to affordable financial advice

Read More

scalablecapital

etfmatic

nutmeg

Fiver a Day

moneyfarm

moneyontoast

wealthhorizon

swanest

 

 

robo-advice

 

 FeesAccount
type
Account
minimum
Investment managementInvestment instrument
Financial planning toolsRebalancingHuman
assisted advice
Risk
management
Scalable Capital 0.75% asset management fee
0.25% fund management fee
general investment £10,000automatedETFsnoyesno individually and dynamically managed portfolios, risk assessment
ETFmatic0.5% asset management fee
0.15 - 0.1% fund management fee
general investment account, ISA, Junior ISA£500 per monthautomatedETFsgoal based planning toolsyesnogoal based risk management
Nutmeg0.95% - 0.30% asset management fee
0.20% fund management fee
min £50/month <£5,000
general investment
ISA
SIPP
£1,000automatedETFsgoal based planningyesnomodel portfolios
Fiver a Dayinitial 0.25% + 0.34% asset management fee
0.46 - 0.52% fund management fee
general investment
ISA
£1,000automatedacively managed funds and ETFsnoyesnomodel portfolios and risk assessment
Money Farm0.6% - 0% asset management fee
0.25% fund management fee
general investment
ISA
noneautomatedETFsnoyesnomodel portfolios
Money on Toast1% asset management fee
0.69% fund management fee
min £3/month
£99 set up pension
general investment
ISA
SIPP
£1,000automatedmanaged portfolios - ETFs and actively managed fundsnoyeslimited personal advicemodel portfolios and risk based
Wealth Horizoninitial fee 0.25%
0.75% asset management fee
0.18% fund management fee
general investment
ISA
£1,000automatedpassive fundsnoyeslimited personal advicemodel portfolio and risk assessment
SwanestTBAgeneral investment
ISA
SIPP
noneautomatedstocks
ETFs
expected return forecasting for any instrumentyesno model portfolios and risk management
Wealthify0.75 - 0.5% of money invested p.a.general investment
ISA
£250automatedETFs and managed fundsnoyeslimited personal servicemodel portfolios and risk assessment
D2 Interactive