European robo-adviser targets UK advisers

Scalable Capital has its sights set on the £250bn sitting in cash Isas in the UK and the 2 trillion euros in current and savings accounts in Germany.

Mr French said: “Leaving money in savings accounts is not going to be the solution.”

David Penny, managing director at Taunton-based Invest Southwest, said: “With that specific offering you would need to do a lot of due diligence.

“Generally-speaking, with the advice gap there will be a lot of receptivity among the public for this kind of thing. It would be foolish of advisers to close their eyes to it.

“The problem with ETFs is in tracking assets. You need to be careful, but they are cheap. In principle I’ve nothing against it but it will always be a poor second best to the real thing, but as there are not enough advisers and advisers that won’t deal with smaller clients, that’s where this comes in.”