Exclusive: Digital wealth manager Nutmeg customers surge past 100,000
Digital wealth manager Nutmeg has enjoyed a coronavirus boost and now boasts more than 100,000 customers after investors shifted online amid the pandemic.
The robo-adviser saw a 33 per cent increase year-on-year in its customer numbers to pass the 100,000 milestone, with assets under management (AUM) peaking at £2.3bn.
In the six months to June Nutmeg’s client numbers soared to 95,000, up from 80,000 in December 2019 after a strong start to the year with revenues increasing by nearly a third.
Chief executive Neil Alexander said: “Nutmeg has benefited from these changes in consumer sentiment and behaviour with faster than anticipated growth in 2020. While traditional providers are realising that being fit-for-purpose in a digital world is no longer a nice-to-have but is now essential.”
This year Nutmeg upped its digital footprint becoming the first wealth manager to offer customers the ability to top up their investments using Google and Apple Pay.
Despite an increase in competition, the company remains the leading digital wealth manager in the UK with a 36 per cent share of the market, and has grown to become the UK’s fifth largest wealth manager.
The topline figueres may look positive for Nutmeg but it comes just a month after Nutmeg reported it had widened its annual losses for the eighth consecutive year.
Accounts for the year to end of December 2019 show the wealth manager sank to a £21m annual loss.
The robo-adviser has looked to diversifying its revenue streams, launching a fully regulated advice service with a £350 flat-fee in October 2018.
The robo-advice sector has attracted interest from financial services firms in recent years, such as Schroders, which backs Nutmeg, and LV, which backs Wealthify.