Selectapension plans to pitch its new digital advice tool Pension Monster as an “automated guidance” service rather than “robo advice” when it is launched in September.
Announced in February, the service was originally reported as a robo-advice service, but the firm’s national account director Peter Bradshaw told FTAdviser that name was inaccurate.
He said the tool provides users with an indicative rather than a comprehensive financial plan, and is intended to be used with a financial adviser.
This, combined with negative connotations around the term robo-advice, explained why the firm had opted to refer to it as automated guidance, he added.
“The intention is to initially distribute it through our user base, which is advisers. So they would do the advice,” explained Mr Bradshaw, noting that the ambition was to give advisers a tool to reach parts of the population that would not normally seek out advice.
Rather than competing with advisers, Pension Monster was intended to be “an extra bit of kit” for them “to market to clients or potential clients”, he stated.
In the long-term, Selectapension plans to target consumers directly, but Mr Bradshaw insisted there was no plan to develop the service into a regulated financial advice tool.
At first the service would be free for advisers and their clients, with a long-term pricing structure yet to be decided upon.
He added that users would be encouraged to seek financial advice, with a link to the Financial Conduct Authority’s website.
Pension Monster will ask users a series of questions, from which it will present them with three options: a guaranteed income through an annuity; a drawdown account; and a cash plan.
Mr Bradshaw added, for simplicity’s sake, the number of product providers listed on Pension Monster would be whittled down to around 12, from a total of 70 listed on Selectapension’s full service for advisers.
james.fernyhough@ft.com
