Aviva has announced it is to buy a majority shareholding in robo-advisor Wealthify. The digital investment platform was launched in April 2016 and uses algorithms to invest customers’ money in passive products including ETFs from the likes of BlackRock and Vanguard.
Richard Theo, co-founder and CEO, Wealthify.
Richard Theo, co-founder and CEO, Wealthify, commented: “It’s with great excitement that we’re announcing the partnership with Aviva today. This significant investment in the emerging ‘robo’ market by one of the world’s largest and most recognised financial services brands is a validation of the vision we set out to achieve three years ago to change investing for the better. Aviva’s investment and access to their millions of UK customers gives us confidence that we can become the leader in this market in the UK and beyond.”
Launched in April 2016 and based in Cardiff, Wealthify aims to attract millennials and those who are new to investment by providing a simple, low fee digital investment service. For a minimum investment of £1 customers can invest in one of five diversified investment plans through ISAs and general investment accounts. The five investment plans depend on an investors preference for risk and range from cautious to adventurous.
Blair Turnbull, managing director, Aviva UK digital, said: “Wealthify aims to take the complexity out of investing. It is particularly aimed at traditional cash savers, who are seeking to diversify their investments, and also at millennials who appreciate an effortless and straightforward digital experience.”
The investment is part of Aviva’s strategy to build customer loyalty by providing customers with a wide range of insurance and investment services all managed through Aviva’s digital hub, MyAviva.
Wealthify will be accessible to Aviva’s customers through MyAviva, where it will be available alongside other Aviva products and services. Turnbull continued, “This is another important step in Aviva’s digital strategy. It underlines our commitment to invest in and partner with leading digital businesses, allowing our customers to benefit from new technology and making insurance and investments simpler, easier and more convenient.”
Aviva’s investment will also support Wealthify’s business development, helping to accelerate Wealthify’s future growth plans. Theo added, “The capital investment from Aviva will be used primarily to accelerate our ambitious growth plans as well as develop our technology to enhance the proposition. We will remain focused on simplicity, affordability and transparency, and strive to make investing accessible to everyone.”
Wealthify is one of a number of low-cost online wealth managers in the UK that invests in ETFs. Other well-known players in the space include Nutmeg, Scalable Capital, MoneyFarm, Moola, ETFmatic, Netwealth, and IG.