We’re pleased to report that Moneyfarm has seen strong figures for the first half of 2021, across some key metrics. The news comes at a time in which we’ve seen strong customer growth and increasing interest in Moneyfarm as a business from elsewhere.
Net inflows – the amount of cash entrusted to us by our customers during the period – leapt by 91% when compared to H1 2020. Similarly, our assets under management (AUM) grew 50%, reaching £1.6 billion. The number of new customers on the platform also grew by 80%, adding to a base that now stands at more than 60,000. The number of millennials investing with Moneyfarm increased by 37%.
In the first half of 2021, Moneyfarm also saw a 126% increase in the number of appointments requested by customers with our investment consultants. Similarly, 33% more one-to-one interactions (consisting of phone calls, email or chat conversations) took place in H1 2021 than in H1 2020. Video calls were rolled out in a test pilot for greater ways to engage with customers – and were met with positive responses. As a result, we will be able to make video calling a regular part of our hybrid consultancy service.
The pandemic leads to an increase in investing
Our consultancy service is tailored to each individual’s risk-return appetite and, with this calibration in place, Moneyfarm customers were able to make their money work harder for them over the course of the pandemic.
UK consumer savings are at record levels because of measures like lockdown and the inability to holiday, among other psychological impacts of the pandemic. This has led to the value of new investments by existing Moneyfarm customers increasing by 86%. The average value of a new investment onto the platform from an existing customer has risen by 38%, when compared to H1 2020.
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More clients are taking the long-term view
In the first half of this year, 75.5% of UK customers invested with a horizon of six years or more, up from 69.7% in 2020.
Customer risk appetite also increased. Moneyfarm’s P6 portfolio (the portfolio with an equity allocation of about 65%) was chosen by 21.2% of UK customers in the first half of this year, compared to 20.36% in 2020; but it was the P7 portfolio (the most heavily weighted towards equities, with an 80% allocation) which saw the biggest jump in take-up across the product range, from 5.9% in 2020 to 9.6% in 2021.
“One side effect of the pandemic has been that generally people have had more time and money to invest, and we’ve seen a significant increase in the appetite for ‘next generation’ investment services, which has resulted in the strong growth in our customer base,” Paolo Galvani, Moneyfarm’s Co-founder and Chairman said. “The number of millennials investing with Moneyfarm has risen and we’re encouraged by the growing number of young people looking to take control of their financial future. Risk appetite has also increased, which we believe is due to increased savings and investor confidence.”
Giovanni Daprà, Co-founder and CEO of Moneyfarm, agreed. “At Moneyfarm, we offer investors a digital yet human investment experience thanks to our dedicated consultants – a team of advisers who work alongside our customers to support them in their financial goals,” he said. “During the pandemic in 2020, one-to-one interactions between our consultants and investors increased by 80% compared to 2019. Our growing customer base, increased requests for appointments, and increased investments suggest that our dual ‘hybrid’ service model is much needed and well-received. Everyone should have access to simple investment solutions and guidance to better manage their capital for the long term – that is our mission at Moneyfarm.”