Four ways Gemma Godfrey wants to change financial advice

In our January 2017 print edition of The Review, Gemma Godfrey, CEO of online wealth manager Moola, explains to Dan Matthews why she believes it’s time for finance to cut out complexity

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Keep it simple, stupidGemma Godfrey wants us all to KISS more. It’s the reason she created the finance management online investment service Moola. But don’t get too excited. Gemma isn’t on a crusade to encourage a spike in lip-locking, she just wants the financial services sector to ‘keep it simple, stupid’. 

She argues that the language used by professionals is esoteric and hard to understand, meaning barriers to entry feel higher than they should. The net result is that the average saver or investor is habitually confused, and occasionally demoralised, by the lack of clarity. 

“In financial services, we need to KISS more,” she says. “There is a serious lack of keeping it simple. It’s about no longer focusing on ‘pushing products’ and instead solving real customer needs; giving people what they want, in the way they want it.”
Get engagedThe Moola CEO, labelled “the UK’s most influential fintech expert” by newspaper City AM, argues that a few simple tweaks would make things a lot easier for the average investor. These improvements, combined with a digital interface that allows people to access information about their money in real time, form the bedrock of her online platform.

“There are two sides to this coin,” she explains. “Yes, people need to take an interest in their finances to afford all the things they want in life. But at the same time, the financial industry needs to make investing engaging, with clear guidance to help people to do it.”

According to Deloitte figures from 2012, 5.5 million adults in Britain either lack access to a financial advisor or for one reason or another have opted to cease using one. This is the market Moola is tapping into, and Gemma has a track record of connecting with prospective customers via non-traditional means. She has amassed an enormous Twitter following (approaching 55,000 at the last count) that soars above the social media presence of even the most successful fund managers.
Embrace changeDigital technology has provided a platform to greatly improve services in finance across the board. The cost of starting up is lower and new entrants have shaken up the economy in recent years, providing leaner and more relevant products direct to consumers.

“Technology enables businesses to offer services to people they wouldn’t have been able to reach previously, tailored for the way they live their lives,” says Gemma. “Automation reduces costs, so services can be offered for a lower price, opening up access for people while enhancing operational efficiencies and profitability for the firm.”
Be more flexibleA new partnership with technology provider EValue will offer advisers forecasting tools, enabling them to give affordable advice to those who couldn’t stump up the fees before. 

“We use technology to reduce the normal overheads and we deal with the whole process for smaller clients, including onboarding, background research and suitability checks,” says Gemma. “We grow the clients and when they get big enough, the FAs can take over.

“We guide them towards a portfolio, they decide whether they want to invest. Then we execute it for them and report back. They can always see details of how well their investments are performing through the online interface.” 
 
This is a preview of our interview with Gemma in the January 2017 print edition of The Review. Read the full piece on pages 24–27. The print edition is available to all members who opt in to receive it, except student members. All eligible members who would like to receive future editions in the post should log in to MyCISI, click on My Account/Communications and set their preference to 'Yes'.
Published: 21 Dec 2016
Categories:
  • The Review
  • Wealth Management
Tags:
  • profiles
  • fintech

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