HSBC 

HSBC launches robo-adviser

HSBC launches robo-adviser

HSBC has become the latest bank to roll out an online advised service after hinting at the development last month.

My Investment, an online platform designed to make wealth advice accessible to investors, will be available from as little as £1,000 to invest at an initial charge of 0.5 per cent followed by fees of up to 0.46 per cent.

HSBC estimates My Investment could be used by 2.87 million of its existing retail customers, including many who may not have considered wealth management an option in the past. 

Advice will be given based on investor's answers to questions about their finances, investment experience and appetite to risk.

My Investment will then recommend one of five HSBC Global Strategy funds - Cautious, Conservative, Balanced, Dynamic, and Adventurous, which will invest in a range of asset types, such as shares, bonds and property in markets around the world. 

The process can be done via tablet, phone or computer, with a personalised investment portfolio being made available to clients within 25 minutes, the bank stated. But users will need to have an HSBC current account and be registered for online banking.

James Hewitson, head of wealth and advice at HSBC UK, said: "Currently, 82 per cent of our customers with investable balances show no evidence of having any previous investment experience – My Investment will help change that by providing the ultimate investment flexibility with online convenience. 

"It complements our existing wealth management telephone and face to face support, giving customers the ability to invest the way they want, when they want and get the best possible advice for their personal needs. The result is a service open to a much broader range of potential investors."

Raman Bhatia, head of digital bank at HSBC UK said: "The way our customers interact with us is changing and we need to ensure that we stay ahead of the curve.

"More customers than ever are using mobile and internet banking with more than 90 per cent of our interactions with customers now done through our digital channels, so it’s the natural next step that we utilise the latest technology to give customers investment advice how they want it."  

Last November NatWest launched its robo-advice service and in the following December it was revealed Nationwide would be testing a digital investment advice service in the Financial Conduct Authority's regulatory sandbox.

HSBC had also taken part in the sandbox project while developing an app to help consumers manage their finances.

Patrick Connolly, a certified financial planner at Chase de Vere, said: "We’re seeing a lot of these innovations entering the market from investment companies, banks and start-ups, and providing you answer their questions correctly you shouldn’t go far wrong. 

"However, they can only ask straightforward questions, they can’t probe, so clients are probably only going to get one-size-fits-all recommendations. They are no alternative to bespoke financial advice."

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