SEI Wealth Platform is to power a new automated advice firm that will launch in the autumn.
The robo-advice company, called Munnypot, has been set up by former Cavanagh Group founders Simon Redgrove and Andrew Fay.
As well as online questionnaires, Munnypot will offer advice to invest in one of five tracker products. It will also update investors on performance and advise them of any changes to investment scenarios.
SEI Wealth Platform managing director for UK private banking Brett Williams says: “As a consequence of the RDR, we have seen an increase in demand for automated advice solutions to help those customers who are no longer being served by advisers, or for those that want to self-serve with some help and guidance.”
The minimum investment into Munnypot is £250. The advice charge is around 0.4 per cent depending on the investment, for initial and ongoing advice. Fund and platform fees are 0.35 per cent.
Williams says: “We are delighted to be partnering with Munnypot, which we believe will be a disruptive brand in the UK market and think the company’s user experience, mobile-first design and simplicity will greatly appeal to a broad range of consumers, not just the tech savvy mass affluent millennials.
“The innovative ongoing alert and messaging framework is extremely powerful and gives customers the chance to be regularly updated on their financial matters.”
Fay says: “The first generation of robo-advice services were, frankly, too robotic and failed to actually give people advice.
“Munnypot is aiming to change that by creating a more natural, intuitive experience that delivers actionable advice, rather than vague recommendations.”
SEI already runs investments for wealth management and advisory firms such as Towry, HSBC, Tilney Bestinvest and Brewin Dolphin. The firm is also eyeing other two partnerships, one of which includes a UK bank.