Yet another robo-advice firm has got into difficulty and been closed down by its parent group.
Moola announced today that it had "regretfully decided to close" on 27 February 2020.
Previously, Investec had closed off its robo-adviser development and Nutmeg has had various funding rounds in addition to deciding to move into formal advice to try and get it to work profitably.
Moola said it would close all customer accounts, and all monthly payments to the firm would stop being collected from 17 January. Clients should make arrangements now to close accounts and move monies to other funds.
As many will know, we too are developing a robo adviser and have been doing so for 5 years, but the difference is that we are real financial advisers that understand consumers needs, desires, limitations etc and what they have not done is considered this and simply built robo engines hoping that investors will come. Literally hundreds of millions have been invested for probably only securing funds under management of c £10m to £15m, with no profits and in one case, a robo firm reportedly only had less than £1,000 in its back account.
We are taking our time to develop our robo proposition and are entirely self funded, we pay for what we develop and have no big backers who will demand results sooner rather than later.