LEBC Group’s “bionic advice” service has passed £1bn of new clients' assets invested.
This was an increase of 100 per cent in just nine months, with more than 37,000 clients using the service, according to the company.
The bionic advice service combines human and automated elements involving the use of an online quenstionnaire.
LEBC has said the fee-based service costs two thirds of the amount of its full advice.
Jack McVitie, the chief executive of LEBC, said: “As an advice business focussed on client outcomes, service and appropriate advice are absolutely paramount in everything we do.
“We understand that pure robo technology is not without its flaws, however by combining human expertise with a technology augmented advice solution, we can advise clients at a scale that would not have previously been possible with a more traditional ‘shoe leather and paper’ model.
“Through our ongoing investment in appropriate technology, our aim is to industrialise and democratise advice. This has to be a good thing for all given current and future needs.”
None of the assets have been moved from LEBC’s existing clients and the firm said the client base for this service includes both investors and non-investor clients.
Mr McVitie said: “Of course, advice does not always mean investment – sometimes the best advice is to do nothing, at other times people just need help with difficult personal financial decisions.
“So, in terms of new clients to the bionic advisory service it is not so simple as dividing the total sum invested by the number of clients to get to an average investment.”
LEBC said its bionic service includes comprehensive fact finding, profiling and suitability, meaning clients receive fully regulated, tailored advice, appropriate and suitable to their own circumstances delivered through both the telephone and internet.
The firm has 16 branches across the UK and around 80 regulated individuals.
Yesterday it was revealed pure robo-adviser Nutmeg had seen its client base more than double from 20,000 to 45,000 while its assets under management had gone up from £600m to £900m.
Despite this the company made a loss of £9.3m in 2016 – up from £8.9m the year before and £5.28m in 2014.
But Nutmeg has said that as it scales “cost-effectively” it will move into profitability.
damian.fantato@ft.com
