SEI Wealth Platform is to power a new automated advice firm to be launched in the autumn.
The robo-advice company, called Munnypot, has been set up by former Cavanagh Group founders Simon Redgrove and Andrew Fay and pre-launches today.
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 SEI Wealth Platform already runs investments for a number of UK wealth management and advisory firms, including Towry, HSBC, Tilney Bestinvest and Brewin Dolphin. The firm is also eyeing another two partnerships, one of which includes a UK bank.
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.”
Munnypot uses an online questionnaire to establish investment attitudes and then will offer advice on which of five tracker products to invest in, to give “actionable advice, rather than vague recommendations”. It will also update investors on performance and advise them of any changes in the investment scenarios.
Fay, who was head of wealth management at Close Brothers Asset Management from 2011 to 2015, 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.”
Redgrove adds: “The UK’s current system of financial advice is profoundly unfair and must change. Millions are bamboozled by the variety and complexity of financial products on the market.
“The financial service industry profits from this, charging sky-high fees for advice, whilst often failing to outperform the market. We’re on a mission to make financial advice affordable and accessible to all, so that their money works harder for them.”
The minimum investment into Munnypot is £250. The advice charge is around 0.4 per cent depending on the investment, the firms says, including ongoing advice. Fund and platform fees are 0.35 per cent.