Share page with AddThis


Wealthsimple exits UK robo market

Exit signCanadian robo-adviser Wealthsimple has quit the UK investment market after four years in order to focus on its domestic business.

The platform’s 16,000 UK customers will be transferred to Italian digital wealth manager Moneyfarm in January along with £272 million in assets.

The deal does not include any of Wealthsimple’s staff or technology operations.

While Wealthsimple has more than £8.8 billion in assets, the UK market represents just 3% of its total assets and 0.8% of its global client book.

Wealthsimple’s decision is the latest move in a rapidly developing and competitive UK online investment market where there have been a number of exits and acquisitions over the last two years.

In January this year, Anglo-German robo-adviser Scalable Capital announced that it would close its UK retail wealth management business. Then Nutmeg was acquired by JP Morgan in June to act as the basis of its wealth management service outside of the US.

Meanwhile traditional UK-based asset managers have been buying up wealth management platforms to develop[ their own digital offerings. For example, abrdn announced plans to develop a wealth management app earlier this year following the acquisition of an artificial intelligence platform Exo Investing.

The asset manager has also just announced a £1.5 billion deal to acquire online platform Interactive Investor.  

The next new entrant will be online broker AJ Bell’s investment app called Dodl which is set to launch in the UK early next year.

©2021 fundsTech

Most read features

Cryptocurrencies: Solving crypto’s sustainability problem

Cryptocurrencies like bitcoin have a huge carbon footprint but, as Nicholas Pratt discovers, environmentally friendly alternatives exist.

Roundtable: The digital transformation opportunity

The funds industry is looking at adopting new types of technology, from automation to ESG reporting, blockchain and tokenisation. A FundsTech roundtable in March explored how these will revolutionise the sector.

Proxy voting: Making every vote count

With stewardship more important than ever and digital technology to the fore, surely it is time to solve the problem of proxy voting? Nicholas Pratt investigates.

Interview: Rise of the robo-adviser

FundsTech talks to Nutmeg’s CTO, Matt Gatrell, about the role of technology in its online offering.

Regulation: Panel calls for simplicity in ESG reporting

The industry accepts the need for more rigour in ESG fund reporting, but the work will be pointless if investors don’t understand the end result. Nicholas Pratt reports.

Sponsored Profiles

The digitally connected Global Transfer Agent

Anand Ramachandran, Vice President, Global Head of Solutions, Richard Clarkson, Head of Solutions, Funds and Swapnil Joshi, Senior Strategy Manager from Oracle Financial Services Global...

Data consolidation takes centre stage in asset management M&A

MergersConsolidation between asset management firms is overwhelmingly expected to increase. Operational challenges remain thanks to legacy systems. But in a recent...

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...

Sponsored profile: A question of trust

AcrobatsAs more firms adopt agile software development practices, Petra Roche of Metrosoft explains why trust is so important in making agility work.