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Moneyfarm eyes advice expansion as customer numbers double

Robo-adviser Moneyfarm has seen the number of investors using its service double in the past year, latest results show.

It now has almost 30,000 clients.

However, despite revenues topping £1m for the first time, total losses increased to nearly £14m.

Since the launch of a new pension product this year, the average first investment size has increased by 120 per cent.

The company also recently increased initial investment threshold from £1 to £500.

The digital wealth manager’s assets under management have grown 50 per cent since last August, hitting £400 million in May.

Moneyfarm says it is now “investing heavily in its advice offering” and is planning to incorporate lifestyle financial planning into its existing investment advice service by expaning from individual wealth to couples and families.

Why robo-advisers need to mitigate risks

Moneyfarm co-founder and chairman Paolo Galvani says: “Online wealth management to date has only focused on creating investment portfolios for individuals. To do this effectively advice needs to be a bigger part of that journey, the exploration we’re doing, in partnership with Envizage, looks to create the most advanced advice offering.”

“We’re looking at factoring in partner income, monthly savings, and expenditure to help make financial goals more attainable.”

The robo-adviser also intends to tailor its products better to the needs of its  customers.

Galvani adds: “Existing ‘robo’ options are limited to generic click options for savings targets – car, house deposit, rainy day fund – but each person’s goal is unique. Our questionnaire-based approach will incorporate far more data points to ensure that specific saving requirements, such as the cost of raising a child, are factored in. It’s all about providing the most accurate advice possible.”

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