Revolut, the global financial super-app with more than 30 million customers worldwide, has introduced a robo-advisor in the US.
This new feature automates the management of investment portfolios on behalf of customers with the aim of giving a more seamless and cost-effective investing experience compared to traditional companies.
Through Revolut’s robo-advisor, users have the opportunity to invest in one of five diversified portfolios based on their risk tolerance. It takes care of the investment process, automatically allocating deposited funds into the market and diligently monitoring and managing the portfolios.
To ensure alignment with the customer’s risk tolerance, the robo-advisor periodically rebalances the portfolio. This means that users can grow their wealth without the need for continuous manual management.
It joins Revolut‘s suite of products and services designed to meet customers’ money-related needs. It aims to simplifies and automates the investment process, providing customers with professionally managed portfolios.
Jack Callahan, Revolut US head of wealth and trading, highlighted the importance of accessibility in investing, acknowledging that many customers lack the time or expertise to actively manage portfolios or invest in individual securities.
“We are excited to add a robo-advisor to our superapp’s suite of wealth and investment products and services. We know that many of our customers do not have the time to manage a portfolio or invest in individual securities. Built to make investing more accessible, we want to give our customers the ability to make their money work for them in what we believe will be a tailored and stress-free way.”
Rise of the robo-advisors
Deloitte predicts that by 2025, the AUM for robo-advisory services will hit $16trillion.
Meanwhile, seventy-three per cent of UK investors believe that ChatGPT could give reliable financial advice in the future. Forty-two per cent of younger investors (18 to 34 year olds) state that they have already used the AI chatbot for advice, reveals the the Investor Index – an annual study of UK investors.
Sarah Nunneley, senior strategist at AML Group says: “The ‘new’ generation of investor is already here and they are looking at what is on offer, weighing up their options and it seems Robo-advice and AI are coming up on top.”