The banking giant is courting investors with much lower cash pots, as it launches into the robo advice space.
HSBC is poised to launch its own automated online wealth management proposition as demand for ‘robo-advice’ reaches the traditional banking market.
The bank’s new personalised online advice service will aim to offer clients with less than £15k wealth management advice at a much reduced cost compared to human advisors.
HSBC’s Online Investment Advice, which should be available by the end of the year, will use data and algorithms to deliver tailored advice.
When investors first log in, which they can do via a computer or smartphone, an algorithm will identify a recommended portfolio after filling in a questionnaire.
Raman Bhatia, HSBC’s head of digital, UK & Europe says the launch reflects a need to “stay ahead of the curve”.
“We are very excited by HSBC Online Advice service and have been working with our customers and the FCA to shape our offering to ensure that we are providing the most up- to-date and smart wealth management advice possible,” he said.