Lighthouse Group has given the rising trend of “robo-advisors” another push by working with online specialist Money On Toast.

Lighthouse Group, the listed company that describes itself as “a leading national financial advisor for Middle Britain”, has given the rising trend of “robo-advisors” another push by working with online specialist Money On Toast.

The financial advisor said it has chosen to work with Money on Toast to provide individual saving account and general investment account planning via a low-cost online advice process.

Initially, and as stage one of a planned range of "Keep it Simple" financial planning solutions, Lighthouse will offer the facility to members of two of its affinity group partners, the Royal College of Nursing and the CSMA Club, for a six-month trial period with a view to then extending the facility to cover other affinity partners.

The move can be seen as part of a process through which online specialist firms with automated advice processes – hence “robo-advisor” – are seen as attempting to win market share from traditional firms, at a time when the industry is challenged by rising regulatory costs and squeezes on margins. Cost burdens have seen thousands of IFAs shut their doors to clients below certain investment thresholds, creating the so-called “advice gap” issue, The "robo-advisor" model is seen as a fix for this problem, to some degree. (to view an article on this, click here). The advent of such "robo" models has its critics, however (see here).

“By delivering this focused investment advice in a simple process online, Lighthouse can now offer individuals the opportunity of receiving such advice at a time and place which is entirely appropriate for them, in effect facilitating access to an 'advice process' which enables individuals to have their investment objectives, risk attitude and capacity for loss identified and accordingly matched with appropriate investment portfolios, whenever it suits,” Lighthouse said in a statement today.

“Individuals who require broader financial planning assistance or indeed wish to engage with a financial advisor in a traditional `face-to-face’ environment will continue to benefit from access to Lighthouse's extensive population of financial planners across the UK,” it said.