JP Morgan Chase, the Wall Street Banking giant, has just announced plans to buy the UK’s largest robo advisor Nutmeg, as part of their wealth management expansion.
Nutmeg pioneered online investment in the UK when it launched in 2012 and quickly became a leader in the online wealth management space. Today, Nutmeg is the largest, and best known UK robo advisor with a total of £3.5bn in assets under investment management for more than 140,000 users.
JPMorgan Chase have expressed their intention to enter the UK’s retail banking market where it will compete with names such as HSBC and Royal Bank of Scotland. The US bank plans to offer current accounts to UK residents later this year with an interest in the international market over the long term.
The acquisition of Nutmeg is complementary to these plans, however, JP Morgan Chase have expressed to Nutmeg’s 140,000 users that they should expect no disruption to any of the products or services currently being offered by Nutmeg.
The management of Nutmeg will remain unchanged with chief executive Neil Alexander remaining at the helm after the acquisition. Alexander has said “Nutmeg’s customers can expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the U.K. I am truly impressed with the digital experience that Chase is building for the U.K., and this new chapter in our story will see Nutmeg’s customers benefit from a wider range of products and services in the future, and allow us to expand into new markets.”
The details of the acquisition as yet remain undisclosed, however, Nutmeg have continued to expand their offering and have continued to experience 70 per cent growth year on year.
Antonia is the Financial Editor at InvestingReviews.co.uk and brings a wealth of experience, having written for various industries over the past 10 years.
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