A wealth management platform powered by AI has launched in the UK to meet the needs of affluent investors holdings £100,000 ($126,000, €113,000)-£2m in investible assets.
According to Rosecut, these individuals have been “abandoned” by traditional wealth managers and private banks.
Affluent ‘middle market’ individuals have become invisible to traditional wealth managers in recent years due to compliance cost inflation, the firm said.
Five years ago, the account minimum would be around £1m, today it is more like £2m to £5m.
Rosecut describes its “mission” as to serve these individuals with guidance on how to protect and grow their wealth.
Offering
The platform will offer financial advice by combining learning algorithms and human insight.
Its AI system will “replicate bespoke adviser sessions in private banks, based upon genuine private banking experience and knowledge, delivered through the platform in real time”.
The firm will also offer a Rosecut Club service to allow members to connect and share experiences.
Rosecut is approved by the Financial Conduct Authority and offers institutional-grade British pound sterling and US dollar investment solutions.
The company is targeting £1bn assets under management after its third year of operation.
Abandonment
Qiaojia Li, co-founder and chief executive of Rosecut, said: “We are building the service of a private bank, with the cost-efficiency and scale of digital delivery.
“The retail market has excellent digital access to solutions that are tech-based and easy to use, but these solutions lack the sophistication to manage significant sums. The high net worth individuals and beyond, meanwhile, have great face-to-face services, albeit quite expensive.
“However, the middle market falls between the cracks, forcing investors to use a combination of retail platforms and IFAs in order to hash together their own imperfect form of wealth management.
“This section of the market is one of the most receptive yet most under-served. Put bluntly, it has been abandoned by the private banks.
“Therefore, we created an all-inclusive, technologically native platform that not only fully serves the middle market but has found a way to redefine what service means.
“We are now ready to start scaling up our client base and onboarding the queue of clients seeking our service.
“During the trial phase, we decided to limit client numbers in order to deliver the quality of service expected of us.”
Founders
The founding team of Rosecut consists of Li and chief technology officer Gustavo Silva.
Li was previously co-head of Asia at Coutts Bank, and was also a relationship manager at Credit Suisse.
Previously, Silva founded a consumer start-up in Latin America called NutriSoft Brazil and after he sold the business, he became a venture capital investor.
Silva added: “When people think about digital business, it’s not about IT, it’s about usability. How do you make it accessible for people to use?
“Our AI-driven platform allows our accredited wealth managers to quickly and easily deliver a completely bespoke strategy where users can plan, allocate and invest in real-time. Being digitally native in this way allows Rosecut to be cost efficient and scalable.
“If we could describe ourselves in one line, it would be to show you your future net worth in one tap. We want financial planning and investment strategy to be as easy as creating a Spotify playlist.”
