evestor launches OpenMoney to help further plug advice gap

“For our customers who are comfortable with investment and don’t want to take advice, the evestor non-advised proposition will continue to provide a low-cost investment management solution for their money."

evestor launches OpenMoney to help further plug advice gap

Low-cost online financial business evestor is to separate its financial advice service from its non-advised service with the launch of new brand ‘OpenMoney’.

Launching in early 2019, OpenMoney will offer wider personal finance advice and information to support a broader range of financial needs alongside the existing investment advice offering. The evestor brand will continue to provide a low-cost investment management service to existing and new customers who prefer to make their own investment decisions.

After just eighteen months of trading, evestor now has nearly 10,000 customers registered with 2,500 of those becoming investors (as at 30 September 2018), and is currently providing financial advice to 1,000 new customers every month. The decision to separate the two parts of the business recognises the different needs of people who are looking for advice about their financial situation and those who already know what they want to do with their money and are simply looking for quality, low-cost investment management.

The new OpenMoney brand will allow the company to create a broader personal finance advice offering to complement its existing investment advice service. The service will see the launch of new online functionality and features aimed at people who may need help with managing debt or building up short-term savings before moving on to long-term investing. It will feature a new website and OpenMoney app providing debt and savings information and recommendations on credit cards, utilities, and insurance.

The team is also investing in improved functionality for the evestor portal and introducing at-retirement and life assurance services as well as more sophisticated goal-based investment solutions to help with planning for retirement and other specific financial objectives.

Anthony Morrow, founder and chief executive of evestor, commented: “We set up evestor to help make honest financial advice affordable and accessible to everyone, regardless of how much money they have. Investing immediately is not the right choice for many people and we are currently telling around two thirds of our advised customers to strengthen their financial situation, by paying off unsecured debts or creating a cash buffer, before putting money towards investing for the medium to long term. We see a real need to offer broader personal finance advice, including recommendations around debt and savings and guidance on the best credit cards, utilities, and insurance deals. By providing additional support to those advised customers who are not yet ready to invest, we aim to further plug the advice gap and help improve financial outcomes for many more people.

“For our customers who are comfortable with investment and don’t want to take advice, the evestor non-advised proposition will continue to provide a low-cost investment management solution for their money.

“We are still a very young company, but after just eighteen months of trading, the demand for our proposition is already clear. This all comes before we have put our foot down in terms of marketing spend, wanting to get the foundations in place and test stress test our platform and proposition first.

“We have just published our first financial accounts which show our commitment to investing in our services and team, now standing at 35 people, to build a stronger business over the long term. By creating two distinct brands, we can provide more focussed solutions to meet the different needs of our two customer groups and help more people make the most of their money.”

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