Plum Secures FCA Approval for AI-Driven Targeted Support to Bridge UK Investment Gap

Plum has secured Financial Conduct Authority (FCA) authorisation to offer Targeted Support, a regulatory milestone allowing the fintech to provide automated, AI-driven investment suggestions to specific customer groups. This move addresses the UK’s "advice gap" by offering low-cost, proactive financial guidance to millions of savers currently holding excess cash in low-yield accounts.

What was announced

The authorisation, granted through Plum’s investment entity Saveable Limited, permits the firm to deliver Targeted Support—a regulatory category designed by the FCA to sit between general guidance and full-scale personalised advice. Plum is among the first fintechs to receive this permission, which it intends to deploy via its existing AI assistant. The service will provide ready-made savings and investment suggestions to groups of consumers who share similar financial characteristics, helping them transition from cash savings to long-term wealth building.

The initial rollout, expected in the coming weeks, will focus on customers holding significant cash balances. According to the firm, there is approximately £600 billion in excess cash sitting in low-yield accounts across the UK that could potentially be invested. By using AI technology to facilitate these conversations, the company aims to reach a portion of the estimated 23 million consumers currently underserved by the traditional advice market. The AI assistant, which has already been utilised by more than 270,000 customers for goal-setting and financial planning, will now be able to offer more proactive, specific suggestions. This development follows the firm's stated intention to eventually secure a full advisory licence to provide personalised investment advice. The firm notes that currently, 91% of people in the UK do not access personalised financial advice.

"Being approved for FCA Targeted Support marks a major milestone in Plum’s journey as a financial institution, and bolsters our credibility within the financial industry, especially being approved in the scheme’s infancy. This is a testament to our regulatory credibility and the strength of our governance."

Victor Trokoudes, CEO and founder of Plum

The companies involved

Plum, also known as Plum Fintech, is a "smart money" app designed to automate savings and investments for retail users. Founded by Victor Trokoudes, the company has positioned itself as a central hub for personal finance management, leveraging automation to help users set aside money and invest in diversified portfolios. The firm operates in a competitive UK fintech landscape, where it vies for market share against both traditional wealth managers and digital-first investment platforms.

The company’s regulatory framework includes its investment entity, Saveable Limited, which holds the necessary permissions to facilitate these new services. Plum has historically focused on democratising access to financial tools that were previously reserved for high-net-worth individuals, such as automated round-ups and AI-driven insights into spending habits. By integrating Targeted Support, the firm is moving deeper into the wealth management space, attempting to convert its large user base of savers into active investors. This strategy relies heavily on its proprietary AI technology to maintain a low-cost model while meeting the FCA’s requirements for consumer protection and governance.

What FF News has reported before

FF News has closely followed Plum’s expansion into the UK wealth and savings market. In August 2026, the firm made a significant move to bolster its backend capabilities when Plum Selects Upvest to Power UK Investment Infrastructure in Major Expansion, a partnership aimed at scaling its investment offerings. The company has also been active in highlighting issues within the UK’s savings landscape; a recent Freedom of Information request by the firm revealed that 45,000 Lifetime ISA Savers Hit With Multiple Penalties in Single Year. Additionally, Plum’s data has provided insights into the broader investment climate, noting that ISA Millionaire Numbers Surge 52% to Record High as Top Pots Hit £12m, reflecting the growing concentration of wealth in tax-efficient wrappers.

What this means

This announcement signals a shift in how the FCA views the role of AI in closing the advice gap. By allowing a fintech to offer Targeted Support, the regulator is effectively greenlighting a middle-ground model that could put traditional wealth managers under pressure. If Plum can successfully convert cash-heavy users into investors without the overhead of human advisers, it proves the viability of the FCA’s new regulatory tier. However, it also raises questions about the boundary between "targeted suggestions" and "regulated advice." The industry will be watching to see how the FCA monitors AI-driven suggestions to ensure they do not inadvertently cross into personalised recommendations without the requisite advisory permissions.