Digital advice pioneer Openmoney will wind down after striking a deal for Octopus Money to take on its 13,000 customers.
Openmoney will stop offering investing operations and services and, once customers are transferred to Octopus, the company will wind down.
Founded in 2016 as Evestor, Openmoney was founded to make financial advice more affordable and accessible for those who were fenced out from the traditional advice market.
But it has faced troubles in recent years and entered a period of "significant" restructuring with expected redundancies after being bought by entrepreneurs Will Mallard and Patrick Leahy.
The deal is expected to be completed in the coming weeks and is is part of Octopus Money's "mission to expand access to personalised money advice".
Octopus Money is part of Octopus Group which was founded in 2000 and which serves more than 5mn UK customers.
But Octopus would not confirm how many customers Octopus Money has or what assets under management it had.
Ruth Handcock, chief executive at Octopus Money, said: “OpenMoney started with a mission that’s close to our hearts: making financial advice and investing affordable and accessible to all.
"Brilliant customer service sits at the heart of everything Octopus does. We will work tirelessly to make sure every OpenMoney and evestor customer gets an incredible level of service as they join the Octopus family.”
Anthony Morrow, founder and non-executive director at OpenMoney, said: “Over the past few months, we have undergone a thorough process to find a safe and secure home for our customers, and we’re excited to have found that with Octopus Money.
"There’s no company I feel shares our values like Octopus, and I am confident that they will take great care of each and every one of our customers.”
Morrow founded Openmoney alongside Moneysupermarket.com founder and friend Duncan Cameron.
He stepped back from the Manchester-based company in 2021 but returned earlier this year to provide “ongoing strategic advice and counsel”.
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
