Digital financial advisers Scalable Captial is launching a competitive new service which will offer advice at lower fees than some traditional adviser hourly rates.
Despite only having launched in 2016, the robo-adviser is already being described as the fastest growing European wealth manager in the digital financial advice sector.

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Low cost

The advice service includes a free consultation to assess whether or not the services Scalable Capital provides would be suitable for the investor. Once this is established, the investor is free to arrange a session with an adviser, which includes a comprehensive fact find and a written investment report. This is all for a fixed fee of £200, and no hidden ongoing charges.

Compared with average fees charged by traditional advisers, as reported by the adviser directory Unbiased, this new service will likely be seen as a move to undercut them.

Co-founder of Scalable, Simon Miller, has explained that there is a clear difference between its new service and those of other advisers. The lower fee level pays for a more restricted advice, and is limited only to the investments under discussion, excluding other aspects of financial advice such as tax planning. The company would, says Miller, make it clear by being upfront about the scope of the advice.

Miller went on to explain that the service is priced so that it would be attractive to clients looking for smaller investments. However, wealthier investors with more complicated financial profiles are increasing their interest in Scalable’s risk-managed investment portfolios, and they’re also interested in using this low-cost, no-frills service.

The technology of financial advice

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For every innovative service and the types of clients it is likely to attract, providers of software for financial advisers such as continually rise to the challenge.

While critics of Scalable Capital’s new low-cost financial advice may have likened it to a personal shopper for investment products rather than ‘traditional’ advice, there is no denying that it is an example of how the face of financial advice continues to evolve. With all-digital robo-advice firms contrasting with the bricks and mortar financial institutions, and innovators identifying market gaps in between, software developers keep a watchful eye on trends and developments in the industry so that they can deliver the systems that will provide secure, compliant and streamlined support.