View more on these topics

Robo-adviser claims to be first fully regulated automated holistic financial planner

Financial planning app Multiply claims to be the first firm ever to offer fully regulated, automated holistic financial advice after its launch today.

The app plans to help address the financial advice gap with the launch of its service over this summer.

The company says it has undergone “stringent testing processes” over the last 18 months to achieve FCA approval.

It claims its technology is advanced enough to make complicated calculations based on an individual’s situation and deliver “suitable tailored recommendations”.

The free service has previously assisted self-employed people to build financial plans and will now be rolled out to people in the UK aged 18 to 50 who earn less than £250,000 a year.

Multiply suggests it will be the only app to automatically explore an individual’s whole financial life across a range of products including pensions, investments, savings and insurance.

Phil Young: What can advisers learn from robos’ moral codes?

The technology will consider timeline goals such as if a user plans to buy a property in the next couple of years.

Users of the app will be required to share their aims and objectives and financial situation to receive advice about the type of product and providers that will best support their needs.

The company claims the advice offered is “completely impartial” without “human bias”.

It said it tested 300 different scenarios and used external industry specialists and paraplanners to check and verify the results of the technology.

Multiply chief executive Vivek Madlani says: “We’re immensely proud to be the first company to receive FCA approval to automate the full advice process. At the moment the industry is going backward, the advice gap is widening.”

Robo-advice platform names ex-Accenture MD as chairman

He adds: “It is extremely encouraging to see the FCA advice unit actively supporting ideas like ours. Their commitment to bringing innovative firms to market that will benefit consumers will see big societal issues like the advice gap tackled, and hopefully solved, sooner rather than later.”

Altus Consulting director of wealth Simon Bussy says the consultancy has been watching Multiply’s development with “great interest”.

He says: “In an extremely competitive marketplace, this development raises the bar, and moves the story on from the ‘linear-journey-into-an-in-house-portfolio’ investment proposition favoured by some digital wealth services to something broader, just as Pefin has in the United States.”

However, Bussy warns that Multiply will also face several challenges including developing the brand and attracting enough users.

Multiply will refer customers to a third-party solution and will receive a fee or commission for referrals or purchases.

Ian McKenna: Why UK robos look more valuable than US peers

It is supported by £1.75m in investment from Octopus Ventures, Portag3 Ventures LP and Entrepreneur First. Angel investors include Nick Hungerford, former chief executive of Nutmeg and Taavet Hinrikus, chief executive of TransferWise.

The FCA regulatory sandbox allows businesses to test innovative propositions in the market in a controlled environment with real consumers.

Multiply said it ran 100 live cases within the sandbox.

Recommended

Advice in the regions: Paying for choice in the capital

London’s access to wealthy clients and location can mean setting up a firm comes at a cost The capital city may not really be paved with gold, but it has more than its fair share of wealthy clients for advisers to service. Known as a place where people’s careers and businesses can thrive on the […]

Sovereign interests: ESG matters in emerging market debt

The emerging market debt universe offers investors an expanding pool of opportunities that may be better assessed when integrating environmental, social and governance factors. Environmental, social and governance (ESG) factors are becoming increasingly relevant for investors in emerging market debt. Since the 2013 ‘taper tantrum’, a number of high-profile events indicate that sovereign ESG weaknesses […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. […] Robo-adviser claims to be first fully regulated automated holistic financial planner […]

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com