By Daniel Lanyon on Tuesday 12 December 2017
Large asset managers and banks have taken a keener and keener interest in fintechs in 2017.
State Street Global Advisors has taken a minority equity stake in online pension manager PensionBee.
The firm, which is the world’s third largest investment manager with $2.67trn in assets under management, has been undergoing a substantial global investment in digitisation of its core business as well as developing various fintech projects in the past year.
PensionBee, an online pension manager that brings investors’ legacy pensions into one plan, will be using the financing to continue growth in the UK direct-to-customer market.
Launched in mid-2016, the company has grown to c. £100m in fee-earning assets with close to 8,000 active accounts and an additional c. £125m of assets-in-transfer.
As a result of the financing, PensionBee will be expanding its white-label product line to offer pension consolidation services to banks and life companies.
The news follows a vibrant 2017 trend of a big and established brands in finance investing in the UK digital wealth space Aviva buying a stake in Wealthify,and BlackRock buying a stake in Scalable Capital.
Nigel Aston, Global Head of Defined Contribution Proposition and Strategy for SSGA, added: “We have really enjoyed working closely with PensionBee over the last few years. We have been incredibly impressed and excited by how they use smart technology, innovative communication techniques and new media to attract and engage their audience.”