NatWest to bring investment to the masses via robo-service
UK high-street bank NatWest is set to introduce a low-cost investment service to its customers that will later be augmented by a robo-advice platform. NatWest Invest will offer customers five funds of differing risk levels. The service, which will require a minimum investment of £500, will also offer a tool that can link investment planning to a specified financial goal, such as raising the deposit to buy a home. The robo-advice service will enable customers to select an investment strategy based on their responses to an online questionnaire about such attributes as risk appetite, income and outgoings.   
NatWest's face-to-face services are set to erode further as it gears up to launch a 'robo advice' portal for novice investors.

The bank, which closed 32 branches and axed 600 jobs last spring, is set to unveil the automated online service later in the year.

It will involve customers responding to questions - based on income, spending and openness to risk - in a bid to guide them towards selecting suitable investments.

Rise of online: NatWest's face-to-face services are set to erode further as it gears up to launch a 'robo advice' portal for novice investors.

In the meantime, NatWest will continue its technological drive this month with the introduction of NatWest Invest.

The amenity will allow clients to choose their own funds and invest with a minimum of £500, with no consultation fees involved.

The bank says its new offerings will help make financial services more accessible and affordable to the masses.

Those using the NatWest Invest service can select the fund they feel best suits their needs and the level of risk they are willing to take.

There are funds spread across five varying risk levels, ranging from those aimed at people who want to take a small risk to adventurous investors who are willing to risk large fluctuations in value.

It will be possible to invest in more than one fund.

Regulators have said new technology could play a major role in driving down costs

People can link their investment to a financial goal such as saving for a deposit for a house and track their investment performance online.

The move comes as more people generally are going online to manage their day-to-day finances.

Les Matheson, the bank's chief executive of personal and business banking, said customers' expectations are changing.

He told the Press Association: 'They are increasingly choosing to bank with us digitally and we have responded to this change by launching an online investment service which customers can access through their existing online banking.'

The service launches on February 20 and the NatWest Invest funds will be available as an Isa.

The bank's customers can use their Isa allowance or transfer funds from an existing Isa.

Customers using the service will be charged a maximum of 0.95 per cent per year of the fund size.

Concerns have previously been raised around an 'advice gap' hindering ordinary savers from getting affordable advice.

Regulators have said new technology could play a major role in driving down the costs.