M&G plc (LON:MNG) has announced that it is partnering with Moneyfarm, a leading digital investment specialist, to provide direct investment services to UK consumers. M&G Wealth, the company’s UK wealth management arm, will use Moneyfarm’s existing technology, digital capabilities and investment guidance journeys to back its own branded proposition.
Direct investing in the UK has seen rapid growth in the last five years, with an average annual increase in assets under management of 18% to reach £351bn by the end of June 20211. Within this sector, demand for digital investment services has accelerated, and now accounts for 19% of all UK direct customers1. Moneyfarm is considered one of the pioneering providers of this emerging segment of the market, offering a modern approach to investing through its proven digital platform technology and marketing expertise.
Designed by M&G Wealth, this new direct digital service will be tailored to meet a range of customer risk appetites and profiles through a collection of multi-asset model portfolios, backed by a selection of actively-managed and passive funds.
Moneyfarm will deliver the operating models, including dedicated squads to support the technology platform and customer relationship management, together with custody and trading services.
Separately, M&G plc is to invest a minority stake in MFM Holding Ltd as part of the company’s latest round of fundraising. Together M&G and Moneyfarm will also explore a range of other opportunities to partner in other European wealth markets.
Giovanni Daprà, Co-Founder & Chief Executive at Moneyfarm, said:
“Moneyfarm was founded in 2012 on the core principle that personal investing should be simple and accessible. Our distinctive partnerships with established players in the industry such as Allianz, Poste Italiane and UniCredit demonstrate the real value that can be created by combining the agility and innovation of a direct, digital fintech business with the scale and experience of an established provider.
“Having launched in the UK five years ago, we are very excited to be partnering with a proven name in M&G on the next stage of our journey”.
David Montgomery, Managing Director at M&G Wealth, 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”.