New start-up firm Clove has vowed to “break the traditional economics of financial advice” by making it more accessible and affordable for all.
Founded by tech entrepreneurs Christian Owens and Alex Loizou, it is launching with $14m (£10m) in pre-seed funding led by Accel.
Clove will use the funding to continue building its team and platform with a view to a full launch in 2026, once authorisation by the FCA is approved.
The firm said it is seeking to hire the “UK’s most ambitious and innovative financial advisers who want to play a key role in reshaping how advice is delivered”.
Both founders believe the profession is about to undergo a “profound transformation”, driven by technological and regulatory change.
“A huge section of society has been failed by the financial advice industry, because it is only able to serve those that are already wealthy,” commented Christian Owens, CEO and co-founder of Clove.
“Today, less than one tenth of the UK population benefits from professional financial advice, and half of advisors have stopped servicing less wealthy clients.”
In the UK alone, 13 million mass affluent individuals hold £3.8 trn in investable assets.
This includes more than 3.7m UK consumers who are both open to receiving professional financial advice and have more than £50,000 available to invest.
The FCA estimates that there are seven million adults in the UK with £10,000+ in cash savings who may be missing out on the benefits of investing throughout their lives.
The regulator believes its plans to allow firms to offer targeted support next year will address the scale of the problem.
“This isn’t an abstract problem,” said Owens. “If you’re not making the most of your money then life milestones such as buying a home, starting a family, setting up a business or retiring early will feel more out of reach than they need to be.”
“We believe that everyone deserves great financial advice,” said Loizou.
“With Clove, we are seeking to break the traditional economics of financial advice by combining the expertise of human advisors with the efficiency of AI.
“Our goal is to make financial planning more accessible, affordable, and effective than ever before, for everyone from young professionals and aspiring entrepreneurs, to growing families and those starting to think about retirement.”
“There is an urgent need to make financial expertise accessible to everyone,” said Matt Robinson, partner at Accel.
“The right advice could help people to buy a home sooner, invest with confidence, and retire on their own terms.
“Christian and Alex combine a proven track record of building and scaling businesses, with a deep passion for solving this problem.
“We’re thrilled to back their vision as they seek to create a new kind of financial institution and strive to empower people to take control of their financial future.”
The funding was led by Accel, with participation from Kindred Capital, Air Street Capital and notable angel investors, including Barney Hussey-Yeo (CEO and founder, Cleo), Patrick Pichette (former CFO, Google) via Inovia Capital, Erez Mathan (CRO, GoCardless) and Gideon Valkin (ex-Monzo and ClearScore).
