Moneyfarm, the leading European digital wealth manager, has reported strong H1 2021 figures as the company continues to go from strength to strength.
Net inflows leapt by 91%, compared to H1 2020, and AUM grew 50% to reach £1.6bn. The number of new customers grew by 80%, adding to a customer base which now stands at more than 60,000. The number of millennials investing with Moneyfarm increased by 37%.
In H1 2021 Moneyfarm also saw a massive 126% increase in the number of appointments requested by customers with its investment consultants. 33% more one-to-one interactions (consisting of phone calls, email or chat conversations) occurred in H1 2021 than H1 2020. Video calls were rolled out in a test pilot for greater ways to engage with customers - and met with success. As a result, Moneyfarm will shortly be able to make video calling a regular part of its hybrid advisory service.
Pandemic leads to increased investments
Moneyfarm’s advisory service is tailored to each individual’s risk-return appetite and customers were able to make their money work harder for them in the second half of the pandemic. With UK consumer savings at record levels because of the pandemic[1], the value of new investments by existing Moneyfarm customers into their portfolios increased by 86%, with the average value of new investment per existing customer up 38%, compared to H1 2020.
More clients taking the long-term view
In the first half of this year, 75.5% of UK customers invested with a horizon of 6 years or more, up from 69.7% in 2020.
Customer risk appetite also increased. Moneyfarm’s P6 portfolio (the portfolio with an equity allocation of about 65%) was chosen by 21.2% of UK customers in the first half of this year, compared to 20.36% in 2020; but it was the P7 portfolio (the most heavily-weighted towards equities, with an 80% allocation) which saw the biggest jump in take-up across the product range, from 5.9% in 2020 to 9.6% in 2021.
Paolo Galvani, Co-founder and Chairman of Moneyfarm, commented on the H1 results: “A side effect of the pandemic has been that generally people have had more time and money to invest, and we’ve seen a significant increase in the appetite for ‘next generation’ investment services, which has resulted in the strong growth in our customer base. The number of millennials investing with Moneyfarm has risen and we’re encouraged by the growing number of young people looking to take control of their financial future. Risk appetite has also increased, which we believe is due to increased savings and investor confidence.”
Giovanni Daprà, Co-founder and CEO of Moneyfarm, concluded: "At Moneyfarm, we offer investors a digital yet human investment experience thanks to our dedicated consultants - a team of advisers who work alongside our customers to support them in their financial goals. During the pandemic in 2020, one-to-one interactions between our consultants and investors increased by 80% compared to 2019. Our growing customer base, increased requests for appointments, and increased investments suggest that our dual ‘hybrid’ service model is much needed and well-received. Everyone should have access to simple investment solutions and guidance to better manage their capital for the long term - that is our mission at Moneyfarm.”