Smart money app Plum has been authorised by the Financial Conduct Authority (FCA) to offer Targeted Support, through its investment entity Saveable Limited.
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This approval means Plum will now be able to provide ready-made savings and investment suggestions to appropriate groups of consumers with shared characteristics, helping them consider whether investing could be right for them and take steps towards building wealth over the long term.
Plum is one of the earliest fintechs to secure this permission from the FCA, joining some of the UK’s most prominent financial institutions. The firm will also be among the first to deliver Targeted Support through AI technology, democratising access to financial knowledge and facilitating conversations with customers.
Targeted Support was introduced by the Financial Conduct Authority with the aim to bridge the gap between general guidance and personalised financial advice, helping people get the right level of support, at an affordable price when they need it most. It is estimated there is currently over £600 billion in excess cash sitting in low-yield accounts that could be invested.*
The first live use cases of Plum’s Targeted Support service will be focused on helping customers who hold a relatively large amount of cash to get started with their investing journey so they can build their long-term wealth. It will be available in the coming weeks through a new iteration of Plum’s popular AI assistant, which has already been used by more than 270,000 customers to help with their finances. The product already enables users to set financial goals and receive plans to help achieve those goals.
Victor Trokoudes, CEO and founder of Plum, said:
“Being approved for FCA Targeted Support marks a major milestone in Plum’s journey as a financial institution, and bolsters our credibility within the financial industry, especially being approved in the scheme’s infancy. This is a testament to our regulatory credibility and the strength of our governance.
“From day one, Plum has existed to democratise finance. Now, with Targeted Support approval from the FCA, we’re going to further help the 91% of people in the UK who don’t access personalised financial advice** through the latest AI technology. This technology has evolved so we can now offer a conversational platform with trusted, automated support.
“We've already helped millions of customers save and invest more effectively through smart automation and market-leading products. We're taking that mission even further by using AI, which is a natural extension of the proactiveness that's always been at the heart of Plum. Now we can deliver proactive support that helps customers make smarter financial decisions and find ways to make their money work harder over time.
“What’s even more exciting is that this is just the latest step for us in the journey. We're also working to secure an advisory licence to offer fully personalised investment advice to our users.”
Will Bryant, Director of Wealth Strategy at Plum, a certified financial adviser who helped to develop Plum’s AI proposition, added:
“It’s currently estimated by the FCA that 23 million consumers are underserved by the advice market. With cost-of-living challenges continuing to squeeze people’s pockets as energy prices rise, consumers need this type of support now more than ever. Targeted Support can help make sure people are making their money work harder for them and making strides towards actively building their wealth over the long term through investing - not just saving money and budgeting.
“Now Plum has been approved to offer Targeted Support, our customers will be able to access more helpful, ready-made suggestions to put them in a better position, helping them on their wealth-building journey.”