One of the newest robo-advisers has said it is thinking about working with advisers in what could be a reciprocal service.
Simon Redgrove, the founder of Munnypot with his former Cavanagh colleague Andrew Fay, said the company is looking to work with third parties but is unsure whether this would include advisers.
Munnypot launched earlier this month offering a minimum investment of £25 a month or a £250 single investment amount.
Mr Redgrove said: “A lot of the work will be doing things with third parties who will be working with us to introduce the concept to their client banks.
“The first one is going to launch in probably a fortnight.
“At this stage we are not clear whether we will be working with advisers.
“Down the road if we are working with financial advisers there could be a reciprocated service.”
He said this could involve passing Munnypot clients to financial advisers if they needed help while advisers would pass on clients who didn’t have sufficient assets for them to work with.
Mr Redgrove said his immediate plans for the future include developing an app for the service.
He said: “We don’t want this seen as a threat to financial advisers. We have been financial advisers for 25 years and it is not about rubbishing the work they do.
“It is about the fact that some people are being left behind and advisers don’t work in those areas any more.”
Mr Redgrove said he had built his previous businesses “from scratch” organically without marketing budgets and said he would do the same with Munnypot.
He and Mr Fay were the duo behind Aim-listed Cavanagh, which was bought by Close Brothers in 2011.
He remained a director of Close Brothers until 2014 at which point he considered returning to advice but decided against it.
Mr Redgrove said: “I didn’t see the longevity in it. We are in a sustained low-return world.
“Whatever you say about giving advice, unless you are getting a return that at least equals the charges you pay, then what’s the point?”
Munnypot charges a platform fee of 0.11 per cent and an investment fund fee ranging from 0.15 per cent and 0.24 per cent plus a tiered monitoring fee and a one-off fee for advice to set up the pot.
