We spoke to Nick Hungerford, the Portag3 Ventures partner and Nutmeg cofounder, about a new dawn in wealth management – fully automated advice.
The future of Wealth Management and Wealthtech — with Nick Hungerford
We’re seeing the evolution of Robo-advice. 3.0. This is super exciting, because this is about answering that question of, ‘I’ve got some money. What do I do about it?’
The world of investing and the world of saving is changing. Now we’re seeing advice—in an automated sense—true financial advice: the very first decision that you make.
When you see the growth of companies like Wealthsimple, and companies like Multiply here in the UK, they are getting authorised to provide fully automated advice.
The real genius about Robo-advice 3.0 is that it knows what you should do with your money before you even get your money: Perhaps it’ll be 4.0 actually achieve this but, they should really be linking into your workplace so that when you get your salary, the moment that that salary arrives, you know, x percentages paid off of your student debt. You know which percentage goes to your housing costs, and your mortgage, and then you’re left with what you have to spend.
Some people might say, ‘Well, that’s a bit overbearing, actually this month I need to cover this special cost’. And that’s absolutely fine. And we have products that allow you to do that, for example, the credit card, but the genius of the technology, and where I hope that will go in next couple of years, is that if you need to make that choice, you’ll be told, ‘Hey, use this credit card because it’s got the best interest rate’ or ‘It’s got one month free’.
All of this is going to develop to allow people, to meet their financial goals in an elegant fashion, and hopefully without too much thought and too much worry.
Nick is a banker turned entrepreneur and investor who's passionate about improving the availability and usability of financial products and services. He was cofounder and director of Nutmeg, and is now a Senior Partner at Portag3 Ventures.