MoneyFarm, the digital wealth manager, has announced a new strategic investment from Allianz Ventures. They will take a minority shareholding in the company.
Launched in 2012 and arriving in the UK in 2016, MoneyFarm sees Allianz’s investment as a proof point for the progress MoneyFarm has made in the fast growing digital wealth management sector.
The investment will help to accelerate MoneyFarm’s expansion in the UK and across Europe and ensure long-term success. The enhanced resources and knowledge provided by Allianz’s investment will support the realisation of MoneyFarm’s vision to make wealth management a right not a luxury.
MoneyFarm explains that financial services institutions now recognise that digital solutions will take a substantial share of the overall wealth management market. AT Kearney predicts that the digital wealth management market will grow to over US $2 trillion by 2020 in the US alone.1
Expansion of the digital wealth management market is being driven by demands from consumers for smart, one-stop wealth management services combined with the huge cost savings and service levels that wealth managers can achieve through technology.
Paolo Galvani, Chairman and co-founder of MoneyFarm, comments: “This investment is an endorsement of what we have achieved so far and also an indication that we have so much potential ahead of us. It is becoming increasingly clear that existing players in this space have barely scratched the surface of possibilities. Across the whole investment lifecycle there is a need for a better model and a better solution. All the feedback we get from our customers is that this is exactly what they have needed.”
Paolo Galvani continues: “We have a relentless focus on creating solutions that fulfil customer needs. User friendly technology is not enough without excellent portfolio performance and we are delivering on that count as well. Our performance through market volatility, created by the vote to leave the EU, is testament to our investment strategy.”
“The combination of online and offline advisory has become a key trend in the wealth management space enabled by technology. Based on the partnership with MoneyFarm, we will further drive innovation to provide better experience to our partners and customers” says Solmaz Altin, Chief Digital Officer of Allianz.
The MoneyFarm team comprises senior management from financial institutions including Deutsche Bank, Morgan Stanley and BlackRock as well as from leading technology giants Google and Last.fm, the online music service.
James Clarke, Partner at Cabot Square Capital, says “All of the team and existing shareholders are really excited about the investment from Allianz Ventures. With over 85 million customers worldwide they bring unparalleled global experience which will help to accelerate MoneyFarm’s product proposition globally. Even more critically, MoneyFarm will be able to leverage the resources and knowledge of Allianz, to capitalise on their recent accomplishments and ensure that they have long and successful future ahead of them.”
At the end of last year, MoneyFarm raised a €16m investment from UK based Cabot Square Capital, the specialist financial services investor, and United Ventures, a leading Italian investor -making it one of the largest Fintech fundraisings of its type in 2015.