Major UK banks plan robo-advice launches
Major High street banks are moving into robo-advice world as part of their return to the mass advice market.
The Financial Times reported that Barclays, Royal Bank of Scotland (RBS), Lloyds and Santander are developing online offerings for their customers, with one of the robo-advisers to due to launch in the next two months.
The news is likely to cause some controversy as these banks pulled out of the advice market on the back of the retail distribution review after a series of mis-selling scandals.
It was reported that the banks are waiting for the outcome of the Financial Conduct Authority’s (FCA) and Treasury’s review on investment advice to be completed before going ahead with their plans.
The news comes after Santander announced plans to return to offering face to face retail investment advice, beginning of the year. The bank, which was fined £12.4 million for widespread failing three years ago, will introduce 225 investment advisers into their branches in the first quarter.
It has also emerged that RBS is also looking to revamp its mass market advice offering for customers with under £500,000.
During 2015, a number of wealth management firms have launched robo-advice arms. Nutmeg stands as the pioneer within the industry, which has been challenged by both start-ups and foreign firms such as Italian MoneyFarm launching into the UK.
Meanwhile, firms such as Brewin Dolphin and Tilney Bestinvest have entered the market with their own direct to consumer offerings.
For the service, the banks would suggest how much money someone should put in certain funds but will only recommend their own products, according to the FT.
Source: City Wire – Major UK banks plan robo-advice launches
