Rosecut, the wealth management platform powered by artificial intelligence, has launched to meet the needs of affluent ‘middle-market’ investors abandoned by traditional wealth managers and private banks. Combining learning algorithms and human insight, Rosecut provides fast, informed and bespoke investment focused financial advice, whilst keeping fees lower for the investor.
The affluent ‘middle market’ consists of individuals who have holdings of £100,000-£2m in investable assets. These individuals have become invisible to traditional wealth managers in recent years due to compliance cost inflation. While five years ago, the account minimum would be c.£1m, today it is more like £2-5m, leaving investors at sub-£2m with very little support. Rosecut’s mission is to serve these individuals with guidance on how to protect and grow their wealth so that they can plan for key life milestones and realise their aspirations through investment. It’s a market of approximately nine million under-serviced UK individuals, representing total investable assets of c.£3.2tn.
Most investors now demand the convenience of digital services, for easy access and real-time monitoring, and, while this is readily available to retail investors from the likes of Nutmeg and Wealthify, traditional wealth managers, serving high-net worth individuals, rarely provide it.
Rosecut’s digital solution offers client access and monitoring anytime, anywhere. Its proprietary AI replicates bespoke advisor sessions in private banks, based upon genuine private banking experience and knowledge, delivered through the platform in real time. It also offers a Rosecut Club service to allow members to connect and share experiences.
It is building a supervised learning algorithm based on the field experience of its financial advisory team, using reinforcement techniques that will allow the algorithm to provide a high-quality bespoke financial strategy for all users under the supervision of human advisors.
Qiaojia Li, Co-founder and CEO 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 underserved. 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.”
The international founding team of Rosecut consists of Chief Executive Officer Qiaojia Li, and Chief Technology Officer Gustavo Silva.
Qiaojia was previously Co-Head of Asia desk at Coutts Bank. In 2018, she was one of only two female advisors featured in the PAM Top 40 Under 40 list, which recognises and promotes the rising stars of the UK wealth management world.
Gustavo Silva founded one of the most successful consumer start-ups in Latin America, NutriSoft Brazil. After he sold the business, Gustavo became a venture capital investor and private bank client himself. At Rosecut, he combines his client-side knowledge with the technical expertise that lie behind Rosecut’s platform.
Gustavo 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.”
Investors comprise venture capital funds and the advisory board includes Michael O’Sullivan, former CIO of Wealth Management at Credit Suisse, and Nick Middleton, previously head of UBS SmartWealth.
Michael O’Sullivan said:
“The speed at which Rosecut has grown, and the uptick in client interest marks it out as a true disruptive force in the wealth management industry.”
Rosecut operates with FCA approval and offers institutional grade GBP and USD investment solutions. The company is targeting £1bn AUM after its third year of operation.