The onward march of robo-advisers continues apace, with two new entrants to the market setting their sights on late summer launches.
Revolut, the pre-paid debit card, currency exchange and peer-to-peer payments app, is set to add investment management to its proposition.
The working title for the service is ‘RevolutWealth’ and the firm hopes to launch the discretionary proposition in the next two months.
The service will follow similar models already in the market, such as Moneybox, which allows card payments to be rounded up to the nearest pound with the spare change then being invested.
A Revolut spokesperson said: ‘It is going to be an investment platform whereby costumers will be able to invest their spare change. For example, if you spend £2.30 on a coffee, Revolut might say to you “hey, would you like to round it up to £3 and invest that 70p’’.’
The tech firm has partnered with ETFmatic to provide a range of underlying risk-graded funds for the proposition.
ETFmatic co-founder and chief executive Luis Rivera, said: ‘We are delighted to be partnering with Revolut to launch a wealth product that will help more people put their savings to work, so they can reach their long term financial goals. By leveraging the flexibility of our platform, Revolut is taking a huge step to help Europe move beyond banking.’
Revolut, which was founded by ex-Credit Suisse traders Nikolay Storonsky and Vlad Yatsenko, also plans to add access to crypto currencies to its offering in the next few weeks.
The second firm looking to carve niche for itself in the robo-advice market is Exo Investing, which has now received FCA authorisation.
Exo will offer personalised portfolios built using ETFs, which will be rebalanced around the clock. The firm also has plans to add funds and individual stocks to the offering in the future.
Exo Investing is the trading name of Finhub Technologies which has offices in both London and Madrid.
It will charge 0.75% for investments over £10,000, falling to 0.5% above £100,000, plus investors will pay the estimated 0.25% cost of the underlying holdings.
Lennart Asshoff, CEO, Exo, said: 'Exo is designed for users who want to take control - unlike robo-advice where clients are allocated one of a set number of portfolios, we offer a level of individualised and continuous risk management found in private banking.'