Aviva (AV.L), a UK-based insurer and financial service provider, bought a majority stake in investment service startup Wealthify, which lets people make low-cost investments online.
The purchase price for the transaction, which is subject to regulatory approval, wasn’t disclosed. The acquisition is part of Aviva’s digital strategy of partnering with leading digital businesses, allowing its customers to benefit from new technology, it said on Thursday.
Aviva is making the investment into the company that was set up in Wales last year to broaden its offerings to a new group of customers, typically millennials, now in their 20s and 30s, who are new to investing.
Wealthify will be accessible to Aviva’s customers through the company’s MyAviva hub. For a minimum investment of 1 pound ($1.32) the platform allows customers to invest in one of five diversified investment plans.
“Wealthify aims to take the complexity out of investing,” Blair Turnbull, managing director at Aviva UK Digital, a unit of Aviva. “It is remarkably easy to use, with no complicated jargon, no expensive fees, and you can start investing with as little as 1 pound. It is particularly aimed at traditional cash savers, who are seeking to diversify their investments, and also at millennials who appreciate an effortless and straightforward digital experience.”