Future Penny seemingly replicates the function of an independent financial adviser, focusing on financial education and literacy, not solely product advice, the company has said.

“Future Penny was established to address the issue of financial literacy and to provide a platform for people to become better organised in relation to their money,” said Future Penny co-founder and managing director David Pettit.

Mr Pettit told Adviser Innovation that the platform was created to ensure that robo-advice goes beyond the recommendation of financial products.

“By focusing on education and financial literacy, instead of just focusing on product placement, we can achieve a valuable user experience whether users transact with a financial product or not.”

Mr Pettit said Future Penny allows users to compare their current financial position against an optimal position, whereby they can close any gaps and address missed opportunities. In terms of product advice, the tool will only make a suggestion if a user’s circumstances are deemed suitable.

“Robo-advice needs to be about ‘guided decision making’ that educates along the way and improves people’s lives,” Mr Pettit added.

DBS Bank chief innovation officer Neil Cross, who provided seed funding to Future Penny, said the start-up focuses on “improving people’s financial lives”.

“Current robo-advisers are too focused on monetisation, with little extra value. Future Penny delivers this extra value for free,” Mr Cross said.

According to Future Penny, the start-up will look to distribute its platform via a white labelling partnership with companies looking to offer the platform to employees.

Future Penny will also look to partner with banks, advisers and other financial institutions.