UK fintech Nuvo has launched a robo-advisor described by the company as an “artificially intelligent digital broker powered by chatbot technology.”
The robo-advisor paves the way for customers to pick prices for mortgage deals, in less than a minute with the help of artificial intelligence.
It was launched to “fill the gap between traditional financial brokers who often charge a fee, and established price comparison websites which provide a list of options without any guidance on the best product to buy,” the company said.
An in-house team of financial experts are available to assist customers with more complicated financial decisions, at zero cost, Nuvo said.
The product launch comes shortly after UK’s regulator- the Competition Markets Authority (CMA)- issued a report urging consumers to use multiple price comparison websites. The report also highlighted websites need to be transparent about how they make their money.
Nuvo’s co-founder and CEO, Richard Hayes, said: “The whole reason price comparison websites exist is to give the customer the best deal but now we are being told to use more than one to find the best price. In addition, whilst pricing tables provided by comparison sites might work for simpler purchases such as car insurance, more advice is needed when buying a mortgage.
“It’s the advice and understanding that places the customer at the centre of recommendations that is currently missing. Cheapest is not always best for the customer. This is where Nuvo comes in, to provide free, impartial advice that ensures customers to get the right option for them.
“Nuvo recommends the right product at the right price.”
Nuvo said that 40% of Britons currently do not use a financial advisor, and rely on their own research.
“With mortgage rates and offers changing daily, it’s a financial minefield for consumers to navigate blindly.”
The launch comes only days after US banking giant Goldman Sachs unveiled Peffin, an automated financial advice provider that uses AI. Goldman Sachs claimed it to be the first in the world to provide such a type of product.
Peffin was founded by former Goldman Sachs executive, Ramya Joseph, and is available at a monthly cost of £11, with no minimum investment required.
Richard added: “Our AI powered chatbot really sets us apart in the sector. It allows customers to provide details via chat which not only is more natural than form filling, but it also means the process is two way so the customer can ask a question at any point if there is something they don’t understand.
“We have launched in Facebook Messenger for the beta as this will allow the chatbots natural language understanding (NLU) technology time to develop in advance of our consumer launch in 2018.”