Revolut, a London-based neobank, has expanded its suite of products and services by introducing a robo-advisor to its super app for users in the United States. The advisor helps users to automate their investment portfolios, thereby “removing the friction from investing,” Revolut said in a blog post published today (Thursday).

Revolut Follows the Robo Advisory Trend

Robo-advisors are algorithms and computer programmes deployed to provide automated, low-cost and personalized investment advice and portfolio management. These digital platforms have continued to disrupt the investment management industry, changing how individuals and institutions approach investing.

In its announcement, Revolut noted that its robo-advisor offers users personalized investment portfolio management for a fee lower than what traditional finance companies offer. In particular, the offering comes with an annual fee of 0.25% and a monthly minimum of $0.25.

The fintech company explained that the robo-advisor works by investing customers’ funds in one of five diversified portfolios based on their risk tolerance determined through responses gathered from them since onboarding. The software programme then automatically continues to monitor and manage the customer portfolio based on the risk tolerance which is rebalanced every month.

“We know that many of our customers do not have the time to manage a portfolio or invest in individual securities,” Jack Callahan, the Head of Wealth and Trading at Revolut US, said in the blog post. “Built to make investing more accessible, we want to give our customers the ability to make their money work for them in what we believe will be a tailored and stress-free way.”

Revolut and Fintech Industry

Revolut’s launch of a robo-advisor occurred as the challenger bank is expanding geographically, recently launching in Brazil. The fintech firm recently added joint accounts and group chat to its mobile application. It also floated a crypto staking service for its customers in the UK and the European Economic Area, Finance Magnates reported.

However, despite recently surpassing 30 million users, Revolut is suffering valuation hits. This situation has gradually decayed due to a global shrinkage in fintech funding.