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Standard Life targets non-advised customers with new Parmenion service

The new service will build on Standard Life Aberdeen's partnerships with Phoenix and Virgin Money

Standard Life targets non-advised customers with new Parmenion service

Standard Life Aberdeen (SLA) is to launch a new investment service through its Parmenion platform for its legacy customers.

The new service, called ‘My Investments’, will use Parmenion and will target legacy customers of Standard Life Investments and Aberdeen Asset Management, with a new digital investment service.

Sarah Lyons, chief marketing officer of Parmenion, said the objective for My Investments is to give these legacy customers, who are not receiving advice, a better experience.

‘The objective is to give them a better proposition and a better digital experience,’ she said.

It will be offered to tens of thousands of legacy clients. Those who move across will transfer from a bundled to an unbundled charging structure meaning they could see a price reduction.

It will use Parmenion technology but the Aberdeen Standard Investments brand.

In addition to this New Model Adviser® understands SLA is also working on a separate non-advised programme for its Phoenix and Virgin Money customers – which it has partnerships with.

Keith Skeoch, who is due to become SLA’s sole chief executive, told analysts last week: ‘We have access to 16 million customers, around 30% of UK savers – and these customers will now have access to a broad range of offerings throughout the ecosystem from non-advice, digital advice to traditional face-to-face advice, either through 1825 or through the 5,000 IFA firms powered by our platform.’

Last March SLA signed a joint venture deal with Virgin Money, which would see SLA manage £3.7 billion of client assets for Virgin Money.

Robo-advice

As well as this direct-to-consumer offering, SLA is also building out its robo-advice service – but this will not be part of its direct play.

Speaking with New Model Adviser®, SLA’s head of UK business Barry O’Dwyer said this robo service would be on offer to IFAs, as well as its own advice arm 1825, and would consist of tools to help them combine digital and face-to-face advice.

‘What we have been thinking about is the elements of digital advice that we could offer to IFAs to improve the productivity of their businesses. That capability might also be used by 1825, so what we are doing is almost building the underlying capability and we will then figure out how we take it to market.

‘Some of it might be enhanced cashflow modelling at retirement, building tools that would help IFAs to deliver better advice at retirement. There are various strands to the project but essentially what we are trying to do is figure out where we can deploy technology to make advisers more productive.’

Last week SLA reported its first full-year results since it Phoenix deal, which saw its net outlfows reach £40.9 billion in 2018. 

SLA is set to lose a £109 billion mandate from Scottish Widows. In the analysts’ call last week, SLA’s chief financial officer, Bill Rattray, said this mandate is worth £100 million of annual revenue.

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