Digital wealth management is scaling fast but costs remain high for disruptors.
Nutmeg, the largest disruptive firm in the wealth management market in the UK has seen losses widen to £9.3m, according to Companies House filings.
The firm, very much in growth mode raised £36m in its latest funding round jn the last 12 months but its latest numbers show in 2016 its losses increased from 2015.
With £600m in assets under management at in the beginning of 2017, the firm is one of the largest in the digital wealth management space. Nonetheless, its operating costs leapt up £1.2m from £8.9m in 2015.
Since December 2016, Nutmeg says it has doubled its customer numbers from 20,000 to more than 47,000 and grown assets from approximately £600m to over £900m.
Martin Stead (pictured), chief executive officer, Nutmeg, said: “We are on a mission to democratise wealth management, by providing a great value, high-quality investment service to all investors. We have set out to build a big business and we are on track with our business plan, with committed backers.
“We continue to invest in our products, services and people to give investors the quality they deserve. Our focus on innovation meant we were one of only three providers to launch a Lifetime ISA on day one, and help thousands of people under 40 invest for their first house or their retirement.
“Nutmeg is a rapidly growing business with over 47,000 new and experienced investors choosing to trust us with their investments. We have 80% market share and everyone at Nutmeg is committed to continuing to lead the way in the digital wealth manager market.”