Always thought that robo-advice was for those with deep pockets? Wrong.
The Financial Times:
HSBC is to start offering online investment advice for thousands of UK customers with small savings pots, as high street banks re-enter the market following a string of mis-selling scandals and a regulatory clampdown. The bank is preparing to burst into “robo-advice” with a personalised service in the coming months, aimed at providing low-cost investment help online for people with savings of less than £15,000.
How much less, you say? HSBC’s Head of Premier and Wealth Management, Taylan Turan, told the FT that the entry point would be “significantly” less than the aforementioned 15 grand. As for how personalized the service would be, he said that it’s “personalised as two customers with the same amount of potential investments will not necessarily have the same recommendation, even if they have the same risk profile,” adding that HSBC is the first to do this.
The personalized service begins when users start answering questions on the website. The questions are your typical “what are your goals” and “what are your financial circumstances” blather, but HSBC’s algorithms can offer clients a lot of sexier instruments to invest in. These include a selection of in-house and third-party funds, as well as ISAs “as a tax-free wrapper.”
When will the bank bring this to Asia? They didn’t give any clues to that, but given the rising wealth and current habits of Asia’s denizens, it probably won’t be too long. Stay tuned.
Photo: Public Domain