RBS offers automated investment advice through NatWest brand

Royal Bank of Scotland has joined rivals like HSBC in launching an automated investment advice service for more than five million customers.

From this week, customers of RBS subsidiary NatWest will be able to choose automated advice through the NatWest Invest online platform.

The move follows that made in January 2016 when Santander kick-started banks’ journey back to the market, less than two years after it was hit with a £12.4m FCA fine for poor advice.

RBS rivals such as Barclays and HSBC have also announced they will enter the robo-advice market this year.

RBS said NatWest customers can now receive advice on amounts as low as £500 as a one off or £50 per month.

The Edinburgh-based group said automated advice through NatWest Invest is designed for customers who want fast, low cost advice on investing their spare income and savings.

Customers are asked about their goals, financial situation and attitude to risk, and they receive a personal recommendation based on their own situation. The advice is given online, and the personal recommendation includes advice on how much they should invest, which fund(s) are right for them, and how to use their ISA allowance. The advice is fully regulated advice and if the advice turns out to be wrong, customers will have the right to complain to the Financial Ombudsman Service.

Customers can link their investment to a financial goal and track their investment performance online 24x7 using their normal online banking log in details.

There’s no charge for the advice, unless customers decide to invest.

If customers choose to make an investment, there’s a £10 charge for the advice and the personalised report. There are no further complex charges or fees.

NatWest’s managing director of premier banking, Phil Northey, said: “At NatWest we are very focussed on meeting our customers’ needs and it is clear that too many of our customers are not able to get the investment advice they need. Their expectations are also changing. They are increasingly choosing to bank with us digitally. We have responded by launching an online investment advice service. This will help our customers to get on in their lives and to achieve their financial goals. We’re proud to be the only UK bank offering such a service to our customers.”

The finds customers can invest in through NatWest Invest are available as an ISA, so the bank’s customers can invest using their ISA allowance or even invest by transferring funds from an existing ISA. There’s no minimum term a customer needs to hold the investment for, but the service is aimed at customers who can afford to leave the money untouched for at least five years. If the service or investing isn’t right for a customer, the service will suggest an alternative to investing a there is no charge.