Robo-adviser expands into Asia in B2B partnership

Robo-adviser expands into Asia in B2B partnership

Nutmeg has become the first European robo-adviser to expand into Asia by launching through a business-to-business partnership.

The development means it will now offer portfolio management and investments services to Taipei Fubon Bank’s five million customers. 

After a successful beta phase, which saw more than 46,000 customers participate in an investment simulation, Taipei Fubon Bank has launched an online wealth management product called Nano Investments. 

Nutmeg has been appointed as investment adviser to provide ongoing advice on strategic asset allocation, investment strategy and ETF due diligence, as well as portfolio management services.  

Martin Stead, chief executive of Nutmeg, said: "Taiwan is an exciting market for expansion, with a large population that is currently under-served by the fintech revolution. 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."

Nano Investments will use AI technology to offer custom portfolio recommendations that are transparent and tailored to customer’s goals and objectives. Nutmeg will recommend a range of ETF-based, globally diversified discretionary investment portfolios to Taipei Fubon Bank and provide ongoing performance and risk monitoring, recommending changes in response to Nutmeg’s in-house macro-economic and market view. 

Customers can invest from $100 (£77).

The news comes after Nutmeg raised £45m in a fundraising exercise which saw Goldman Sachs take a stake in the business.

Nutmeg’s existing investor, Hong Kong-based financial advice firm Convoy, was also involved in the funding round.

The robo-adviser, which launched in 2012, has more than £1.75bn under management and more than 70,000 clients - though it has still not made a profit and in 2017 saw its losses increase to more than £12m.

Martin Bamford, a chartered financial planner and managing director of Informed Choice, said: "Robo advisers looking for scale will need to look outside of the UK to find a critical mass of customers.

"Expanding into the Asian market makes real sense for a business model that relies on volume to become profitable. It’s good to see new entrants like Nutmeg chasing growth ambitious globally, which should place the UK fintech market in even higher regard on the global stage."