M&G Wealth partners digital platform Moneyfarm
M&G is partnering with Moneyfarm to provide direct investment services to UK consumers on the back of rapid growth in the sector in the last five years.
They will launch a direct-to-consumer digital product under the M&G Wealth brand. They will also explore a range of opportunities to partner in other European wealth markets.
The deal is set to complete by the end of Q1, with M&G taking a minority stake in the firm after leading a £44.1m funding round.
The sector has seen an average annual increase in assets under management of 18% to reach £351bn by the end of June 2021.
Within this sector, demand for digital investment services has accelerated, and now accounts for 19% of all UK direct customers.
David Montgomery, managing director at M&G Wealth (pictured), said: “With the launch of a direct, mobile-based investment platform, complementing our growing independent, proprietary and hybrid adviser businesses, our customers will be able to access the channel, advice and investment proposition that most suits their financial situation and needs.
“We have been highly impressed by Moneyfarm’s innovative approach and look forward to working together to build a simple and effective proposition to serve our next generation of retail customers”.