Receive our newsletter – data, insights and analysis delivered to you
  1. News
October 31, 2018updated 01 Nov 2018 10:13am

Online wealth manager Nutmeg rolls out personalised financial advice

By Oliver Williams

Nutmeg, the UK online wealth manager, has announced plans to roll out personalised investment advice.

The new offering is a major change to a firm that has always branded itself as a ‘pure online digital wealth manager’. However, it follows a similar announcement earlier this year from rival Scalable Capital that it would be offering over-the-phone advice. Other fintechs are thought to be following suit.

Nutmeg was launched in 2011 as a pure fintech solution for investors who could manage their portfolios online. It grew to become the UK’s largest ‘robo-advisor’ with assets under management of £1bn one year ago and 50,000 clients by the end of 2017.

On Wednesday Nutmeg announced plans to trial the provision of personal advice in a pilot scheme with two advisors.

The one-on-one professional financial advice will offer fund recommendations and portfolio reviews. While initial consultations will be free, clients will be charged £350 if they choose to invest in the personalised recommendations.

Lisa Caplan, head of financial advice at Nutmeg, said “We’re assessing the same financial circumstances that a traditional financial adviser would, but by using technology we’re giving people the freedom to do it at a time that suits them, at a fraction of the cost they’d face from an IFA.”

Earlier this month Nutmeg announced its losses for 2017 were £12.3m, an increase from the previous year. This was partly blamed on operating expenses which grew by 42% to £16.9m as headcount increased from 71 to 88.

The fintech has not yet recorded a profit despite turnover increasing by £2m to £4.5m in 2017.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU