Known as the Investment Hub, the platform will offer access to Santander Asset Management funds and around 2,000 funds from other providers.
Backed by technology from FNZ, which also powers the Standard Life and Zurich advised platforms, it will have an annual management charge of 0.35%.
Customers will be able to make initial minimum lump sum payments of £100 ($142, €126) per fund, with no maximum amount, as well as for additional payments, said the bank. Meanwhile, regular payments can be set up for as little as £20 per month via direct debit.
The bank confirmed that it will transfer all 250,000 customers with existing investments in funds managed by Santander ISA Managers over to the new platform by the end of the year. Users can also consolidate their investments held with other providers onto the Investment Hub.
Alan Mathewson, wealth management and private banking managing director at Santander, said: “A crucial element of our wealth proposition is to make the investment market more accessible – a key focus of our work following the Financial Advice Market Review.
“Online investing is likely to represent 25% to 30% of the UK retail investments market over the next couple of years. As a scale challenger bank, we want to be at the forefront of this trend as we continue to develop our proposition for customers in a simple, transparent and more affordable way.”
The move marks a return to the investment advice market less than two years after being hit with a £12.4m fine by the FCA for “serious failings” in the way the bank offered financial advice.
New private banking arm
It comes after Monday’s announcement of the launch of Santander’s private bank business in the UK.
The bank said it will launch “bespoke” services to clients who have £500,000 savings or investments with an annual income of £250,000 later this year.
The service comes with a private banker who will provide advice on banking, lending, investment and financial planning products.
It will still accept deposits via intermediaries through its Cater Allen division and a discretionary investment management offering will also be available in due course, said Santander.
“The retail distribution review made it harder to get advice to the masses. With £100,000 or less, it’s hard to gain advice in the market,” said Mathewson.