Nutmeg to expand into Asia in partnership with Taiwan bank

Nutmeg, the UK’s largest digital wealth manager, is expanding into Asia, announcing the launch of its first strategic partnership, in a deal with Taipei Fubon Bank.

Since launch in 2012, Nutmeg has amassed more than 70,000 UK customers and its assets-under-management have reached the £1.5bn mark.

Despite this, Nutmeg has not yet reached the point of profitability, registering losses of £12.3m in 2017.
Nutmeg foray into Asia first of many

This has pointed towards the platform’s future lying in partnerships such as this one, with CEO Martin Stead hinting the firm’s intention for it to be the first of many.

“Through partnerships like the one with Taipei Fubon Bank, Nutmeg will be leveraging our technology and expertise to bring digital innovation to new markets,” Stead says.

“There’s great potential to work with strategic B2B partners, maximising the strength of both parties, to bring high-quality, low-cost wealth management to many more people.”

Taipei Fubon Bank has launched an online wealth management product, Nano Investments, with Nutmeg providing portfolio management services and advice on strategic asset allocation, investment strategy and ETF due diligence.

Nano Investments will integrate Nutmeg’s core technology and users will be offered a range of portfolios presumably similar to those which existing Nutmeg customers are.

Nutmeg customers are provided with a series of questions to determine the most appropriate portfolio for their needs given their knowledge of financial markets, long-term goals and aversion towards risk.

The collaboration between Nutmeg and the Taiwan bank has been launched after a beta phase, in which 46,000 customers participated in an investment simulation
Nutmeg and Asia expansion

“Taiwan is an exciting market for expansion, with a large population that is currently under-served by the fintech revolution,” Stead continues.

“Working in partnership with Taipei Fubon Bank, using Nutmeg’s proprietary technology and investment expertise, we’re able to help them reach the majority of their customers who don’t currently have a private wealth management option.”

Nutmeg received £45m in a funding round led by Goldman Sachs in January, and in March looked to its customers to raise a further £10m.