Robo-advice gets personal

Aviva’s decision to acquire a majority stake in Wealthify, a low cost robo-investment service, is a major step for robo-investment.

It is also a step forward for robo-investment and its application to insurance and wealth management.

The deal is positive for both providers and consumers because it will 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.

Expect to see many more similar deals as large insurers and banks seek to maintain their competitive position by acquiring smaller FinTech players.