Moneyfarm, Europe’s leading digital wealth manager, today reports steady year-on-year growth in revenues, up from £1.61 million in 2018 to £2.72 million in 2019, while pre-tax losses have fallen.
Bolstered by the financial backing from Allianz Asset Management and Poste Italiane in its latest series C funding round last year, Moneyfarm has invested heavily in its advice offering and has continued to expand its customer base through innovative partnerships and improvements to its digital platform.
With the first half of 2020 being among the most financially difficult periods for investors over the last two decades, Moneyfarm’s resilient approach continues to result in robust growth across the board.
Despite the impact of COVID-19 on investor certainty, Moneyfarm’s assets under management now sit at over £1billion – up 53% compared to June 2019 – while the number of active customers has now surpassed 50,000 – up 34% compared to the end of June last year.
As the market began to recover, customers reduced their liquidity in Moneyfarm accounts by gradually reinvesting it. The company has since reported that gross inflows from January to June 2020 increased 75%, compared to the same period last year. Meanwhile, deposits in Moneyfarm accounts in the UK were up by a third (+34%), including a 55% increase in top ups deriving from current customers.
This investment behaviour is at odds with the wider investor trends seen during the first half of the year. Recent data from the European Central Bank suggests that, in March and April alone, liquidity stored in current accounts grew by over £15 billion (two and a half times that of the same months in 2019) as people turned to cash to hold wealth.
Investing in technology and expanding its reach has been a key focus for the company over the last year. Most recently, in July 2020, the company struck a deal with Fabrick, an open banking platform, giving banks and intermediaries the infrastructure to offer Moneyfarm’s service to their customers.
Paolo Galvani, Co-founder and President of Moneyfarm, said: “Seeing results like these is more than just satisfying. It also serves as proof that the model we offer, made up of human expertise and advanced digital technologies, is appealing to an ever increasing number of investors, particularly those looking for an innovative and fresh approach to managing their savings.”
Giovanni Daprà, Co-founder and CEO of Moneyfarm, concluded: “It is undeniable that the past few months have had a profound effect on investors. The lockdown has irreversibly accelerated the changing attitudes of investors towards the intermediaries they use. Being prepared to face this change head on, with a digital-first approach to investments, has allowed us to respond to the evolving needs of our current and future customers.”