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.
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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.
