Robo-advisor MoneyFarm arrives in the UK
Written by Michelle Stevens
29/02/2016
European digital wealth management company MoneyFarm has launched in the UK, which it says makes it the first robo-advisor to operate in more than one country.
The Italian firm, which was founded in 2011, claims that its line of investment products will “revolutionise the UK’s wealth management sector”. Its platform allows private investors to open an account in less than 10 minutes and manage their portfolios via their smartphone. MoneyFarm products will be commission free for the first £10,000 invested, and fee and commission free for savings over £1 million.
MoneyFarm argues that its “pioneering use of technology” means it can offer savers a smoother customer experience and better risk-weighted returns, at a lower cost than market incumbents. Its model uses Exchange Traded Funds (ETF), and the company focuses on macro-economic trends, low cost instruments and diverse asset allocation to maximise investment potential.
Investors are aligned to one of six portfolios created by a combination of MoneyFarm’s advanced technology and the expertise of its senior management team – who have been recruited from companies such as Deutsche Bank, Citigroup and BlackRock.
MoneyFarm already has over 60,000 active users in Italy and is the first robo-advisor to launch with an iOS app in the UK. A recent funding round also saw the FinTech firm raise €16 million from the likes of Cabot Square Capital and United Ventures.
Paolo Galvani, chairman and co-founder of MoneyFarm, says: “MoneyFarm’s approach to investing will provide a service that has been sorely lacking in the UK wealth management market. Our innovative technology will be married with telephone access to advisors.
“As reliance on mobile devices grows, UK investors want the ability to manage their investment portfolios ‘on the go’. It is vital that any challengers to the wealth management market respond to this need. Investors want convenience, independence, a high quality of service, good returns and competitive pricing – that is what we aspire to provide.”
