Wealth Management and Open Banking: Nutmeg Partners with TrueLayer

A partnership between Nutmeg and TrueLayer will bring the benefits of open banking to the U.K. wealth management business for the first time. The online investment platform announced that it will leverage TrueLayer’s financial APIs to enable its customers to make faster, more secure payments to their accounts online or from their mobile device.

“The payments industry is still dominated by card payments, but bank transfers are the best and fastest way to get money into a Nutmeg account and therefore into the market,” Nutmeg Chief Operating Officer Matt Gatrell said. Unfortunately, he explained, the lack of a quality user experience has made customer reluctant to use this option. “With this in mind,” Gatrell said, “Nutmeg has worked with TrueLayer to launch Open Banking payments for customers – reducing a lengthy user process to just a couple of taps.”

Courtesy of the new partnership, all users will need to do is login to their bank, and confirm the payment to their Nutmeg account to make additions to their investments. Nutmeg said this will enable investors to get their money into the market quicker, and boasts that it is the first wealth manager in the U.K. to offer this account funding option, which TrueLayer CEO and co-founder Francesco Simoneschi called “the killer use case for Open Banking.”

Simoneschi explained: “Simplifying and speeding up processes such as payments makes a tangible difference to consumers. It helps them to have much more control and choice with their finances. This is a fundamental goal of Open Banking and another step forward in its wider adoption.”

Nutmeg has bigger plans for leveraging Open Banking than just bank transfers. In a blog post at the company’s website, Nutmeg Product Manager Charlie Masters noted that open banking has helped incentivize the company’s integrations with companies like Yolt, Emma, and MoneyDashboard earlier this year. “We see these new financial products as a great opportunity to improve the customer experience,” Masters wrote.

Founded in 2011 and headquartered in London, U.K., Nutmeg has been a Finovate alum for more than eight years. With more than $153 million in funding raised, the company includes Goldman Sachs, Armada Investment AG, Convoy Global Holdings, Taipei Fubon Bank, and Pentech Ventures among its investors.

Photo by PhotoMIX Company from Pexels

Finovate Alumni News

Around the web

  • Bankjoy inks partnerships with a trio of Indiana and Texas-based credit unions: Las Colinas FCU, Fort Financial CU, and Mobility CU.
  • Polish telecom Cyfrowy Polsat to take minority stake in Asseco Poland.
  • Nutmeg CEO Martin Stead will leave his post in early 2020, and will be replaced by CFO and COO Jason Alexander.
  • Datasine forges technology partnership with digital marketing platform Mapp.
  • MacKay Municipal Managers chooses open architecture digital platform from Artivest for its financial advisors.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Currencycloud’s Currencycloud Spark Powers Multi-Currency Accounts.
  • The Tightly-Knit Mortgagetech Sector Gets Even Tighter as Ellie Mae Acquires Capsilon.

Around the web

  • Tradeshift teams with Genpact to help clients enhance accounts payable and procurement processes.
  • OurCrowd to join the Millennium Alternative Investment Networkto increase VC opportunities in the U.S.
  • Finextra talks to Nutmeg about expanding the human side of its roboadvisory.
  • Dwolla unveils The Integration Partner Program for more seamless technical integrations between Dwolla, its partners, and their clients.
  • Finantix appoints Christine Ciriani as Chief Commercial Officer.
  • NCR teams with Brightwell to supply ATMs and managed services for Brightwell’s largest cruise line clients.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

Around the web

  • Meniga opens new office in Singapore.
  • nCino announces expansion to Canada, opens doors on new Toronto, Ontario office.
  • Avaloq acquires structured products and derivatives data provider Derivative Partners.
  • Singapore’s Fintech News features aixigo, Nutmeg, and nextmarkets in its look at top European wealthtech solutions “that Singaporean banks should know.”
  • Anorak teams up with protection and mortgage advice company Albany Park.
  • NDGIT announces new strategic customer in Portuguese challenger bank, Banco BNI Europa.
  • The ID Co. joins North American division of the Financial Data & Technology Association (FDATA).

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Nutmeg Says No to IPO, Opts for Crowdfunding Instead

Two months after closing a $58 million investment, U.K. wealth management company Nutmeg announced it will crowdfund its next bout of funding.

Nutmeg is opting to sell shares to its clients, rather than list the company on a public exchange, which would subject it to the volatility of the market. The company will be using Crowdcube as its crowdfunding platform.

“We’re pleased that we will soon be giving eligible Nutmeg customers the chance to become shareholders alongside our existing investors like Convoy, Goldman Sachs and Balderton Capital, among others,” the company announced on its website. Customers who hold a Nutmeg account on May 15 will get early access to participate in the crowdfunding round and those who sign up on Crowdcube will receive updates as soon as it goes live (the timing of the launch is currently undisclosed). The company plans to use the funds to fuel international expansion.

On its website announcing the offer, Nutmeg reminds potential participants that purchasing the shares is “high-risk” and “isn’t for the short term.” The company reinforced the non-traditional nature of the investment, saying that it “isn’t listed on any stock exchange, and you won’t be able to sell your shares until the business achieves an ‘exit’, such as being sold to another company or floating on a stock exchange.”

Since it was founded in 2011, Nutmeg has raised $148 million from 13 investors, including Convoy, Goldman Sachs, and Balderton Capital. The company currently manages $2 billion (£1.5 billion) in funds for its 65,000 clients in the U.K.

Nutmeg showcased its digital investment management at FinovateEurope 2012 in London. Last year, the company was featured on Fidor Bank’s digital marketplace as an inaugural partner. Co-founded by Nick Hungerford and William Todd, Nutmeg appointed Martin Stead as CEO in 2015.

Finovate Alumni News

On Finovate.com

  • Overbond Launches COBI Matching in Pivot to Analytics.
  • YellowDog Raises $3.3 Million in Series A.
  • Nutmeg Says No to IPO, Opts for Crowdfunding Instead.

Around the web

  • Ledger integrates with Cardano’s ADA and Yoroi Wallets.
  • Insuritas partners with SouthEast Bank to launch bank-owned digital insurance agency platform.
  • Adobe unveils Commerce Cloud, a customizable and scalable platform to manage, personalize, and optimize the commerce experience.
  • SigFig unveils SigFig Atlas, a financial advice and software-guided sales platform.
  • InComm and WH Smith launch in-store, online hubs for game cards in the U.K.
  • UBank integrates Watson into its customer service offerings with RoboBrain, a Watson-enabled virtual assistant.
  • Token.io and Konsentus launch fast PSD2 compliance solution by combining a PSD2 API with automated TPP verification.
  • Verimi and Signicat partner to deliver verified digital identity solution for European enterprises.
  • HooYu to provide ID verification for esports betting platform, Luckbox.
  • Qover earns a spot on Programmable Web’s list of 13 Notable Insurance APIs.
  • WRAL Tech Wire features Spreedly in a look at local technology companies.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Nutmeg Raises $58 Million in Goldman Sachs-Led Funding

Nutmeg, the alternative investment app, has completed a $58.7 million (£45 million) fundraise led by the Goldman Sachs Principal Strategic Investments Group, and Convoy, the Hong Kong-based financial advisory firm, reports Henry Vilar of Fintech Futures (Finovate’s sister publication).

It aims to use the funding to expand, with “an international B2B plug-and-play partnership model which leverages its proprietary technology.”

Convoy will help Nutmeg launch into Hong Kong later this year, according to the firm. Convoy first invested in the firm in 2016.

This is the largest ever investment into a digital wealth manager in Europe, according to Nutmeg.

Nutmeg currently counts 60,000 customers in the U.K., out of which 40% of our customers have never invested before; 35% are female, compared to a market average of just 26%; and the average age of our investor is 40, around ten years younger than the industry average.

Goldman Sachs is well known for making long-term investments in “fast-growing” technology companies.

Some recent examples include alternative SME finance provider Capify and cyber firm Immersive Labs.

Nutmeg demonstrated its online investment manager at FinovateEurope 2012. Headquartered in London, and founded in 2010, this week’s investment brings the company’s total funding to more than $147 million. Martin Stead is CEO.

Fidor Bank’s Digital Marketplace Features Nutmeg as Inaugural Partner

Fidor Group has been at the forefront of fintech innovation since it received its banking license in 2009. Today, the company’s U.K. challenger bank announced that Nutmeg is one of two inaugural partners for Finance Bay, the bank’s new marketplace that aims to offer clients access to alternative investment opportunities. The second inaugural partner for the launch of Finance Bay is equity crowdfunding platform Seedrs. The fintech marketplace will host additional partners, including a number of debt-based P2P lending platforms, in the coming months.

Katharina Rausch, Head of FinanceBay, Fidor’s Fintech marketplace, said, “Fidor has long welcomed affluent and financially curious customers to our digital bank and based on their investment appetites we have built an exciting suite of investment products made accessible to customers via a handful of carefully curated Fintech partners. Our fintech marketplace will be instrumental in offering exciting investment opportunities to many of Fidor’s UK based customers.”

Founded in 2011, Nutmeg’s online wealth management platform seeks to democratize saving and investing. The company manages portfolios, ISAs, and pensions and offers a range of fully managed and fixed allocation portfolios. Martin Stead, CEO of Nutmeg, said, “We are passionate about making quality wealth management available to everyone and initiatives like Fidor’s Fintech marketplace, make great strides toward this goal.”

U.K.-based Nutmeg showcased its technology at FinovateEurope 2012 in London. In 2016, the company was honored at Your Money Awards, ETF.com Awards, and FSTech Awards. The company has raised a total of almost $90 million.

Fidor has demoed at FinovateEurope 2011 and presented at FinDEVr New York 2016. The Munich-based company was recently acquired by France’s Groupe BPCE. Last month, Fidor Solutions appointed former ABN Amro exec, Geert Ensing, as its new Chief Information Officer.

Finovate Alumni News

On Finovate.com

  • SocietyOne Surpasses $300 Million in Loans Issued
  • Fidor Bank’s Digital Marketplace Features Nutmeg as Inaugural Partner

Around the web

  • DefenseStorm to serve as cybersecurity partner for Bank of Jackson Hole to enhance security.
  • Baker Hill NextGen to power consumer loan origination for CapStar Bank.
  • Zenmonics Teams Up With Queen City Fintech To Drive Fintech Innovation in Charlotte
  • Fiserv partners with Vestwell to add digital retirement planning to its wealth management network

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Nutmeg Closes $14.6 Million Series D Round


U.K.-based wealth management company Nutmeg brought its total funding to $90 million today after closing its Series D round, which was led by Taipei Fubon Bank.

The news comes hot on the heels of Nutmeg’s most recent funding when it scored $37 million in Series C funding last month from Convoy, Hong Kong’s largest firm of independent financial advisers. Adding two Asian investors in the past two months comes as a hint as to what’s next for the roboadvisor. Nutmeg CEO Martin Stead told TechCrunch,

There is a very significant market opportunity before us, in the U.K. and beyond, and we are going to capture it. With these new funds, we will continue to invest in product innovations which disrupt the industry and deliver a better deal–and a better experience–for customers. And, we are going to expand into new categories and new territories.

Expansion into the Asia Pacific region is a logical move, since it’s currently experiencing a fintech boom, while the U.S. market is saturated (see our wealth tech coverage for more on this).

Nutmeg, which manages $735 million for its 25,000 clients, debuted its digital wealth management technology at FinovateEurope 2012 in London. In early 2016 the company was recognized on the European Top 100 List at the European Fintech Awards, and the company’s former CEO and founder Nick Hungerford was named one of the U.K.’s coolest people in fintech. In May of 2016, Martin Stead, Nutmeg’s former chief revenue officer, assumed the role of CEO.

Finovate Alumni News

On Finovate.com

  • Nutmeg Closes $14.6 Million Series D Round”

Around the web

  • Taulia reaches supply chain finance into aerospace sector.
  • The New York Times highlights Credit Karma and Mint.

This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.

Top Direct-to-Consumer Wealthtech Plays


Our wealthtech industry coverage continues this week. We looked at the industry last week and reviewed the top trends earlier this month. Today we’re taking a look at industry players with B2C offerings—in other words, companies that market directly to consumers and not through businesses.

Since wealthtech is broader than just roboadvisers, we’ve divided B2C wealthtech players into seven categories and laid out our top picks for each group. Since category sizes vary, the number of our selections also vary.

Top in-house builds from traditional players
These are offerings from traditional wealth management firms that have been built in-house (or purchased and then white-labeled) and marketed under the firm’s brand.

Fully automated roboadvisers
These are online platforms that provide automated, algorithm-based portfolio management without intervention from human advisers and without personalized, one-on-one conversations with a human adviser.

screen-shot-2016-12-22-at-4-06-40-pmAcorns takes a unique approach by linking a user’s debit card and investing their “spare change”

Hybrid roboadvisers
These are traditional advisory services, including personalized conversations and actively managed portfolios blended with computerized portfolio recommendations. Business Insider reports hybrid roboadvisers will manage 10% of all investable assets by 2025.

screen-shot-2016-12-22-at-4-11-08-pmSigFig has partnered with multiple banks, including Wells Fargo, Pershing, and Citizens Bank

Non-U.S. roboadvisers

Alternative investing platforms
These are platforms that link participants to unconventional investment types, such as private equity, hedge funds, futures, real estate, etc.

screen-shot-2016-12-22-at-4-18-08-pmWith Motif, uses invest in grouped stocks and ETFs that revolve around a common theme

Non-U.S. alternative investing platforms

News and information companies
These are online platforms that help users discover news and market trends before they go mainstream. Some include social networking aspects.

screen-shot-2016-12-22-at-4-23-47-pmTickerTags helps users discover trends even before they become news