UK wealthtech Nutmeg recently completed a funding round of $58 million for global expansion co-led by Goldman Sachs. The move will likely see Goldman position Nutmeg alongside its retail savings platform Marcus.
Schroders, the 200 year old UK asset manager was an early investor in Nutmeg. Last year, Blackrock took a stake in the Anglo-German robo Scalabeable Capital to help it expand, following an investment in U.S. robo FutureAdvisor, which is selling B2B solutions to legacy wealth managers.
Traditional financial institutions and especially legacy banks are spending billions on technology and innovation to deliver digital solutions to better appeal to consumers, at the same time as driving down costs.
Banks like JPMorgan and Wells Fargo have been working on their own robo solutions with Wells launching ThinkAdvisor. These along with startup robos in the U.S. like Wealthfront and Betterment are all competing with legacy asset managers like Vanguard, Fidelity and Charles Schwab all of whom have launched their own robo platforms.
One of the big focus areas in on the main prize - a new segment of digitally savy generation x to y millenial consumers positioned to inherit wealth over the next decade from the most successful generation of wealth accumulators in history, the baby boomers - their parents and grandparents.