Robo-advice is an area that is becoming increasingly important within the financial services sector. The past few years have seen quite a bit of novel tech around robo-advising, some better than others.
One firm that looks like it may end up playing the role of archetypal disruptor within the robo-advice world is the United Kingdom’s sophisticated and highly accessible financial management platform Munnypot, which is the first UK firm to make use of Dutch tech provided by banking and wealth management software provider Five Degrees. In a recently published case study on robo-advice, fintech news source and authority for developments in digital banking – Banking Technology looks back at the ups and downs face by Munnypot on its road to success.
The solution Munnypot provides is fairly novel within the financial services world. The innovative platform simplifies financial management to make it more accessible to everyday consumers. In addition, it can provide its financial rob-advisory services at just a fraction of what average financial advisor or wealth manager typically charge.
But none of this success could even be possible without facilitation on the workflow level that is carried out by Dutch provider of dynamic digital banking software Five Degrees. In fact, Munnypot is the first site in the UK to go live on the Five Degrees digital blanking platform, known as Matrix. Five Degrees has so far seen positive headway being made in the financial sector of the Netherlands, especially in the areas of retail and SME banking. That being said, this first live example of its solutions marks an important achievement for the up and coming Dutch company.
More on Munnypot
Munnypot’s founders Andrew Fay and Simon Redgrove share a wide breadth of wealth management experience, knowledge and insight between them. It was this, as well as a few other precipitating events that eventually put these two financial advice experts on the road to creating Munnypot. As a matter of fact, there were three key reasons that led the two founders to agree that it was high time they start bringing financial advice to a much wider audience. These have been briefly outlined below.
- Regulations introduced in 2012 to provide much greater transparency to consumers, particularly around pricing. This has caused advising to become even less affordable for lower income savers, in turn contributing to a so-called ‘advice gap’ of 16 million people in the UK that could be taking advantage of financial advice if it were simpler and cheaper.
- Simplified tax measures in the UK have paved the way to bring more a straightforward approach to robo-advice on financial products for consumers.
- Evolving consumer behaviours has led to widespread adoption of the tech needed to carry out payments and purhcases, both online, as well as through mobile applications.
Over the past few years, the services and solutions offered by the world of robo-advice have steadily become less robotic and more engaging for consumers. Munnypot’s founders were well aware of the advice gap that had been plaguing the UK market, and so it committed to resolving the issue online, and at a low cost, in order to offer better, more fair terms to consumers. This advanced robo-advice solution provided by Munnypot will certainly bring the fledgling new fintech entrant invaluable competitive advantage.
If you would like to take a look at the original Robo-advice case study as published on the Banking Technology website on March 11th, 2017, please click here.