Aviva has agreed to acquire a majority stake in Wealthify, a Welsh-based low cost robo-investment service, which aims to make investment affordable and accessible to the UK mass market.
Launched in April 2016 and based in Cardiff, Wealthify aims to attract millennials and those who are new to investment by providing a simple, easy to use and 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 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 use the investment to support its business development and also accelerate its future growth plans.
Aviva UK digital managing director, Blair Turnbull, said Wealthify combines a smart management team with great technology and a start up culture.
Turnbull commented: “Together with the brand and financial strength of Aviva, we are very excited about the future opportunity, making Wealthify available to Aviva customers through the convenience of our MyAviva online and App experience.”
Turnbull added: “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.”
Wealthify co-founder and CEO, Richard Theo, said: “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.”
Theo added: “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.”
Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers, across 16 markets worldwide.
Wealthify is a fully digital service available across desktop, tablet and mobile, as well as by app for iOS and Android.