It wants to reach up to 9m individuals it says have been “abandoned” by traditional wealth managers and private banks.
The company says it plans to make “Financial Planning and investment strategy…as easy as Spotify.”
Rosecut has been set up by a former Coutts private banker Qiaojia Li and Brazilian-born programmer and entrepreneur Gustavo Silva. It combines algorithms, human financial advisers and digital delivery to keep fees down for investors.
The firm defines the affluent ‘middle market’ as individuals who have holdings of between £100,000 and £2m in investable assets. This is likely to include professionals in their thirties and forties who are ‘time poor’ but well off.
It claims these individuals have become “invisible” to traditional wealth managers in recent years due to “compliance cost inflation” making it uneconomic to service them.
Rosecut is using a proprietary AI system to replicate “bespoke adviser sessions in private banks” based on private banking experience and knowledge. The firm says its learning algorithm is also based on the field experience of its own financial advisory team.
Co-founder Gustavo Silva said: “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.”
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 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.”
The company is targeting £1bn AUM after its third year of operation. Parent company Rosecut Technologies is registered through the FCA as an appointed representative of Dolfin Financial.