The first quarter of this year saw the popular robo-advisor pass the £3 billion in assets under management milestone following a record 53 per cent increase in the number of users on their platform compared to the same period in 2020.
Whilst this sounds promising for Nutmeg, in 2019 they experienced a loss of £22 million, which is also the last time Nutmeg released accounts, however, they have indicated that the sudden influx of retail accounts has moved them ‘closer to profitability’ indicating that they have yet to make a profit. A Nutmeg spokesperson has also indicated that losses were reduced by 30 per cent in 2020, following eight consecutive years of growing losses for the fintech company.
Nutmeg now reports 130,000 UK users with net inflows growing by 230 per cent and revenue growth of 66 per cent.
Nutmeg’s chief executive officer, Neil Alexander took office at the end of 2019 with the intention to steer Nutmeg towards greater efficiency. Neil Alexander has also said,
While the last year has been financially difficult for many people, we have also seen many new and existing clients who have been fortunate enough to have more disposable income as a result of reduced expenditure on leisure, hospitality, commuting, and holidays.”
“Nutmeg has been a beneficiary of this shift, welcoming tens of thousands of seasoned investors wanting to take advantage of a digital-first wealth management service, along with first-time investors looking for the support they receive from our wealth services team in helping them to achieve their financial goals.”
Nutmeg are the fourth largest wealth manager in the UK, offering a diversified range of portfolios as well as financial advisory services to its users.