Coutts is to adopt a robo advice service as part of its offering. The private bank is developing a 'robo led' advice for itself and the RBS Group as its ‘centre of excellence’ - sources involved in its development have told thewealthnet. Features of the Coutts system will be shared throughout the RBS Group to address the advice gap in mass affluent markets. The system's development does not replace face-to-face and bespoke services at Coutts but is designed to supplement them with advisers on hand ready to step in at certain steps. Sources said while this kind of advice, also known as 'self directed advice', would cut costs it was not a prime motivator. The move is in response to the challenge posed by services, such as Nutmeg, Moneyfarm, and others, who target matching private client portfolio returns with lower fees. Last year Nutmeg was admitted to Asset Risk Consultants private client indices. Barclays, Santander and Lloyds have confirmed they are in various stages of development with their offerings aimed at mass affluent advice gap clients. They are waiting for the outcome of a FCA and Treasury review into advice in the UK. Santander is also known to be developing its services for wealthiest clients as well as recruiting to provide face-to-face advice in-branch advice as is HSBC, which has denied developing a robo capability. A Coutts robo service will be keenly watched in an industry which makes much of the quality of its people and bespoke services.
Coutts plans to join the tide of new entrants to the robo-advice market in the UK this year. The company has been working with a number of banks and financial institutions on its service, which is available for free at www.bankofbritain.com. The system is designed to supplement rather than replace the customised services offered by the bank.