Santander robo-advisor is now available for customers looking to invest sums as low as £20 ($27) month.
Starting off, the service will cost the customer a one-off £20 fee. After that, the customer will only pay investment charges.
Furthermore, users can open an account in the form of an Isa or general investment account.
How it works
The bank’s Digital Investment Adviser (DIA) will guide customers through the process. To get a better picture of the person, the DIA will ask questions about their financial status.
These questions will cover the individuals goals and the level of risk they are prepared to take with money.
The information provided is fed through an algorithm which then recommends one of four risk-rated portfolios. Moreover, each portfolio comes with a different portion in stocks, bonds and cash.
Santander robo-advisor is aimed at ordinary consumers who steer away from traditional investment.
The bank says the process will also point to other options if it identifies that investing isn’t currently right for the user. That service is free of charge.
Santander UK head of investments, Alexia Kilby said: ‘Our research shows there are lots of people out there who have cash available to invest but are losing out as they just don’t know where to start.
‘DIA’s online tool is carefully designed to walk even the most unsure of investors through a number of questions and activities to deliver easy to understand, regulated investment advice from a trusted high-street name.’
How does the Santander robo-advisor compare
In the last few years, robo-advisors become more popular. Many more high street banks are launching the service to support customers in investment choices.
NatWest launched its robo-advisor last year. Similar to Santander, however, Natwest does not charge for the advice unless customers decide to invest.
The Santander robo-advisor is one of many from retail banks entering the market.