Moneyfarm deepens German links after Allianz tie up

UK digital wealth manager Moneyfarm has extended its reach into the German market after launching a new investment product with Allianz.

The partnership will see the British start up sell multi-asset investments in Germany in a pilot beta test from today. It is the first time that the German group’s asset management arm, Allianz Global Investors, will sell its actively managed funds through a digital wealth manager.

London-based Moneyfarm, founded in 2012, has amassed more than 37,000 customers across the UK, Italy and Germany. It competes with such UK rivals as Nutmeg and Wealthify.

Allianz Group, the Munich-based financial services powerhouse, has 85 million customers in more than 70 countries.

Big German savers

The German market is home to the biggest savers in the world, with the average household saving 9 per cent of their income and gross savings equating to 28 per cent of the country’s gross domestic product.

The start up’s new partnership comes after it bought German digital wealth manager vaamo in late 2018 for an undisclosed sum.

Moneyfarm co-founder and chief executive Giovanni Daprà (pictured right, left is Vaamo co-founder and joint chief executive Thomas Bloch) said: “Our expansion in Germany represents a huge landmark for Moneyfarm as we grow our presence outside of Italy and the UK and look to capitalise on the growth of digital wealth management across Europe.”

He added: “As part of the launch, we’re excited to offer a new product that gives customers the best of both worlds; cooperating with Allianz to add actively traded funds to our hybrid portfolio without sacrificing the benefit of low passive prices.”

The German giant became Moneyfarm’s lead investor and largest minority shareholder, after injecting an undisclosed sum into the start up last May. This was Allianz’s second investment in Moneyfarm, with its first coming in 2016.

Intelligent offerings

Allianz management board member Jackie Hunt said: "We are convinced that intelligent, digital wealth management offerings will gain in importance in the medium to long term. By working with start-ups such as Moneyfarm, we can combine agile technologies with our experience for the best benefit of our clients.”

The partners initial beta test will be sold to existing clients of vaamo and its strategic Frankfurt-based banking partner 1822direkt, as well as Allianz Global Investors employees in Germany. Other customers in Germany will be able to invest in the new product from September.