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Wealthsimple quits UK market

Wealthsimple quits UK market

Canadian fintech giant Wealthsimple is pulling out of the UK investment market, transferring its customers to Moneyfarm.

Wealthsimple launched its robo-advisor service in the UK four and a half years ago but has now decided to focus on its Canadian business "for the time being".

It has 16000 UK customers and £272 million in assets under management. Eligible customers will be transferred to Moneyfarm towards the end of January.

In March, the firm sold off its US book - about 17,400 customers with assets under management of $190 million - to Betterment.

Meanwhile, Toronto-based Wealthsimple has been busy expanding its range of services in its home market, moving into crypto and rolling out a P2P money transfer service. Earlier this year it raised C$750 million at a C$5 billion valuation.

Founded in 2011, Moneyfarm has operations in the UK, serving 68,000 clients and managing more than £2 billion in assets.

Comments: (1)

A Finextra member
A Finextra member 06 December, 2021, 14:13Be the first to give this comment the thumbs up 0 likes

this looks like a shakeout in the UK. Scalable Capital ceased its activities in the UK at the beginning of 2021, followed by another provider, Wealthsimple. Let's see whether Moneyfarm will hold on in the long run. Moneyfarm also wanted to become big in Germany, but then said goodbye again after 1 year. Whether the now transferred Wealthsimple customers will be so happy about the change to Moneyfarm remains to be seen.