Munny for old rope – how robo-advice can help you monetise your client base

Anyone who has had the privilege of receiving traditional, face-to-face financial advice will agree it is an indispensable service.

In our view, tomorrow's advice market will look very different to today's. If you are looking to expand your offering, decrease costs, increase revenues and keep up with the times, please get in touch.

IFAs are excellent at delivering professional, personal and appropriate advice to their clients. Advisers have a history of building strong, long-term customer relationships, building up trust over time and becoming essential to the lives of high net worth clients.

But the financial advice market is changing

  • Cost of advice is growing – The cost of offering traditional advice is growing due to regulatory requirements (GDPR, MiFiD II, the IDD) and this trend is set to continue.
  • Asset owners of the future expect a digital experience – Future generations of high net worth individuals expect digital alternatives to traditional models and are willing to pay for automated advice (see Figure 1). Unless advisers find a way to service these customers, in our view they will lose out to digital disruptors. This lack of certainty in the future is impacting the value of IFA businesses today.
  • It's not just millennials – Savers with larger investments are actually the most willing to adopt automated advice for at least part of their investment portfolio (see Figure 2).
  • £35bn AUM will be robo-advised in the UK alone by 2022* – A new wave of disruptive advisers is flowing into this sector.

Traditional IFAs need to compete in this space in order to survive.

These market dynamics create a challenging environment for the adviser community. However, they also present a significant opportunity.

Figure 1.

Willingness to invest more than £10,000 using automated financial advice by wealth level

 bar chart

Source: YouGov 23-24 January 2017, Deloitte analysis in 2017 Deloitte report: "The next frontier: The future fo automated financial advice in the UK". Samples: GB adults with more than £1,000 in savings and investments (excluding pensions and property wea

Figure 2.

Willingness to pay for automated advice by age

 bar chart

Source: YouGov 23-24 January 2017, Deloitte analysis in 2017 Deloutte report: "The next frontier: The future of automated financial advice in the UK". Samples range from 50-793. Excludes at-retirement due to small samples

The way we see it, advisers have three options

  1. Build a low-cost advice offering in-house

But creating an in-house automated product from scratch requires significant capital, technology and time, inevitably detracting valuable resources away from core business.

  1. Direct clients to a self-service platform

Advisers spend years learning how to provide appropriate financial advice. We would never expect someone to diagnose their own health, so why do we expect people to manage their own wealth? Moreover, once a customer is entrenched in self-service management of their assets, it is extremely difficult to bring them back to the traditional advice model.

  1. Partner with a Fintech to offer a low cost, engaging, financial advice product

With Munnypot IFAs can provide automated, yet personalised financial advice at low marginal cost with own branding


A partnership with Munnypot has many benefits for IFAs

  • Provide genuine financial advice – Unlike many robo-advice products in the market that offer predominantly guidance-based, execution-only platforms, our product perfectly complements the service already provided by IFAs by producing a customised suitability report for every client. It even provides customers with an automated recommendation of what product to invest through: an ISA, a GIA or a JISA.
  • Focus on high value clients – By using Munnypot for simpler transactions, advisers can reduce the cost of existing clients and focus face-to-face advice on higher value conversations. Attract and monetise future generations, whilst always maintaining a direct client relationship, using the fully automated, simple, conversational, goal-based interface to engage with those unfamiliar with investing.
  • Ongoing monitoring and advice as standard – Munnypot provides ongoing monitoring of clients' goals and will flag when investment performance is off-track. The system provides automated follow-up advice on what action should be taken to resolve the issue.
  • We want to help IFAs thrive in this rapidly changing marketplace – Today, Munnypot is offered as a white-label solution for simple investments. Tomorrow, Munnypot, and products like ours will be able to advise customers on insurance products and how best to plan for retirement.

For more information on Munnypot or to arrange a demo, please email or contact our offices on 01293 224 281.

Andrew Fay

Andy has nearly 30 years’ experience in financial services. He started his career as a financial adviser, before co-founding Cavanagh Group. He successfully sold Cavanagh to Close Brothers in 2011, where he continued to act as Head of Wealth Management.

Important Information

Munnypot is a trading name of Munnypot Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority. FRN 574048.