"Aviva’s investment in our business reflects a clear shift in market demand for high-quality, technology-enabled financial services solutions like Wealthify"
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.
Wealthify will be accessible to Aviva’s customers through MyAviva, where it will be available alongside other Aviva products and services. Aviva’s investment will also support Wealthify’s business development, helping to accelerate Wealthify’s future growth plans.
Following the announcement, DigitalWealthInsights said the deal "will be the start of an M&A drive in the robo advice sector".
Blair Turnbull, Managing Director at Aviva UK Digital, said: ““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.”
Richard Theo, Co-founder and CEO of Wealthify, commented: “This significant investment in the emerging ‘robo’ market, by one of the world’s largest and most recognised financial services brands, is 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.
“Aviva’s investment in our business reflects a clear shift in market demand for high-quality, technology-enabled financial services solutions like Wealthify. With the backing of such an established and trusted consumer finance brand, we feel ever more confident in our mission to bring the benefits of investing to mass-market savers and encourage them to embrace our service as a hassle free way to invest."
Ian McKenna, Director at DigitalWealthInsights, added: “The acquisition by Aviva of a majority stake in Wealthify has significant implications for the whole UK robo advice community and wider personal savings market. I expect the deal will spark much more M&A in the sector as others try to identify and assess quality propositions to add to their offering.
“This move by the world's 12th largest insurer and major asset manager is far more significant than the previous investment by LV= in Wealth Wizards and other UK robo deals.
“With this acquisition Aviva is emulating Black Rock and other US institutions who acquired robo firms early rather than build their own in order that they could quickly partner with other financial institutions. This move will cause Aviva’s peers to question if they are now at a commercial disadvantage particularly when trying to build partnerships with building societies and other savings institutions. It could also have significant impact on the asset management community. Do Aviva Investors had a significant advantage over their peers with an innovative new route to market?
“The deal may also unlock opportunities for Aviva to deliver other products such as life and personal lines insurers to the attractive Generation X and Millennial demographics targeted by Wealthify.
“While the deal opens many opportunities, the hard work is yet to be done and it will be two to three years before we can see the benefits reflected in Aviva results.”
