Online investment manager Nutmeg has expanded into personalised advice with the launch of a new pilot service.
The robo-adviser, which was one of the first to enter the market, has levied a staunch criticism of the cost of traditional advice as it says it will offer “tailored financial advice” with “personal recommendations and qualified financial advice”.
Nutmeg says the financial advice industry has been “happy to neglect swathes of the population” to date.
Clients will be able to get a one-on-one review, “providing the insight that can only come from speaking to a professional adviser”.
Nutmeg says an initial discussion about circumstances will be free of charge, and clients will pay £350 for tailored recommendations after that.
Nutmeg did not provide any further detail on ongoing charges or what investment propositions would be available in its statement.
However, it appears that the regulated recommendations may be limited to the firm’s own portfolios. Nutmeg’s financial advice website page reads: “We’ll tell you how and where to invest your money for any Nutmeg products and we’ll help you to implement our recommendation.”
Customers can get started in 15 minutes, the firm says.
Nutmeg head of financial advice Lisa Caplan says: “Everyone has goals in life, whether it’s retiring early, investing for their children, putting money aside for the perfect property or simply making the most of their money. But the scarcity of financial advisers, prohibitive costs and an industry happy to neglect swathes of the population, means many people are faced with making big financial decisions on their own.
“Too few people know what sort of financial advice is available, how it could help them or where to find it. We want to change that and make financial advice accessible to more people.”
Caplan says the firm will be “assessing the same financial circumstances that a traditional financial adviser would” but at “a fraction of the cost they’d face from an IFA” by using technology.
Caplan adds: ” “It’s little wonder that the UK is facing such an enormous savings gap when financial advice has been so slow to adapt to changing customer needs. In the next few years the way financial advice is given is going to radically change. ”
Nutmeg has been eyeing an entry to the advice market since 2015. Assets have passed £1bn but profitability remains a struggle for the firm.