An Italian digital wealth management company has launched in the UK promising to shake up the industry.
MoneyFarm was founded in 2011 and already has more than 60,000 active users in Italy.
Paolo Galvani, chairman and co-founder of MoneyFarm, said the business will become the first robo-adviser to launch with an IOS app in the UK and will be fee-free for the first £10,000 invested.
Mr Galvani said the company’s UK launch is part of its wider international expansion plans, which he anticipates will lead to it becoming Europe’s leading digital wealth manager.
He said: “Traditionally, many investors in the UK have had a raw deal from fund managers and banks. Often hit by high costs, they have not received the level of service they deserve.
“MoneyFarm’s approach to investing will provide a service that has been sorely lacking in the UK wealth management market. Our innovative technology will be married with telephone access to advisers.
“We are incredibly excited to be expanding our service into the UK market and are confident that the UK’s highly sophisticated investors will get significant benefits from the range of innovative products we are introducing.”
Mr Galvani said MoneyFarm uses ETFs to offer “efficient, competitive returns” and investors are put into one of six portfolios based on their risk appetite, which is established through algorithms and risk profiling.
The company’s UK launch follows a funding round that saw the company raise €16m (£12.6m) from a combination of Cabot Square Capital, the UK specialist services investor, and United Ventures, an Italian investor.
MoneyFarm charges nothing for the first £10,000 which is invested and 0.6 per cent for investments between £10,001 and £100,000.
Investments between £100,001 and £1m will be charged at 0.4 per cent while those of £1m will be free.