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Under New Management, Moneyfarm assets grow by 50% in H1, 2021

The evolution of wealth management services has been fascinating to observe over the last decade. Previously, sophisticated systems based on hardcopies were in vogue. Now, the trend is towards modern processes that take advantage of novel technologies. Overall, asset management has come a long way.

Accessibility is one thing that has increased notably over the last ten years, and this is majorly thanks to technological advances in the financial services industry. Going digital has enabled the provision of more cost-effective financial services. As a result, more people’s dreams of investing are within reach. Digital wealth management services are proving profitable, as exemplified by Moneyfarm’s success. Moneyfarm is one of the top providers of tech-based asset management services. The company came out of H1 2021 with a very favorable outcome.

Enormous Investment Appetite Spurred by The Pandemic

One of the reasons for Moneyfarm’s good fortune was the coronavirus pandemic. According to Paolo Galvani, co-founder, and chairman of Moneyfarm, people became more interested in putting their money to work for them in various ways. Galvani observed that people had more time on their hands, so they were beginning to seriously consider saving money for the future.

All this has added positively to Moneyfarm’s list of customers. Moneyfarm’s performance statistics are impressive, given that COVID-19 has discombobulated many aspects of life for almost two years. The company’s list of customers rose by 80%. Lots of new customers are millennials who are given careful thought to their financial futures.

The company’s net inflows – which are the sums of monies customers charge Moneyfarm with stewarding for them – rose by 91%. Assets under Moneyfarm management experienced an equally spectacular increase, reaching £1.6 billion in H1.

Wealth Management Transformed by Innovative Digital Technology

Moneyfarm works because it is powered by innovative technology coupled with human expertise in a creative way. Moneyfarm uses technology to lower the often-lofty costs of engaging with wealth management services. The company also puts tech to good use by simplifying the asset management process. In this way, asset managers at Moneyfarm can construct and steward solid portfolios for their clientele.

The robo-advisory aspect of Moneyfarm is often misunderstood – usually by those unfamiliar with digital wealth management services – as the determining factor in putting portfolios together for customers. That is not how Moneyfarm uses robo-advice. The main use to which robo-advice is put by Moneyfarm is to ensure that investment portfolios are designed to match the customer’s desires. By contributing to the growth and protection of customers’ monies, Moneyfarm is the leader in investments tailored to each individual’s risk-return appetite.

The success that Moneyfarm is currently enjoying is also partially due to people saving more of their money. A knock-on effect of increased consumer savings is an increase in consumer risk appetite. The pandemic undoubtedly had a positive effect on savings in the UK. Moneyfarm saw an astonishing increase of 38% in the average value of new investment per existing customer. Galvani believes that the rise in appetite for risk is additionally bolstered by the confidence that investors currently have in the markets.

A New Leadership Team Focused on Excellent Customer Service

New staff at the company has also contributed positively to Moneyfarm’s improved financial performance for H1. Formerly of Wealthify – a significant competitor for Moneyfarm – Dan Giddings works at Moneyfarm as the Head of Business Development in the UK. Giddings brings to Moneyfarm remarkable skills such as sourcing partnerships with banks and firms that specialize in meting out financial advice. Giddings is eager to demonstrate to UK customers what Moneyfarm can do. He credits the company’s recent impressive growth to excellent customer-facing services, as well as high-quality investment portfolios.

For the leadership at Moneyfarm, like Giovanni Daprà, co-founder and CEO of the company, equal access to financial services for everyone is important. They are passionate about providing investment solutions for customers, no matter what their risk appetite is. Ultimately, helping people manage their capital better coupled with providing real-time answers to investment queries is what motivates Moneyfarm to keep doing what it does.

Companies like Moneyfarm demonstrate the benefits of marrying technological advancements to human resource expertise. A blend of remarkable tech and impressive employees is a winning formula for Moneyfarm and will stand the company in good stead as it enters the final quarter of the year.

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