Unifimoney wins $10m in seed money as digital wealth heats up

Digital wealth start-up sets sights on alternative investments, as financial firms ramp up investment in robo-advice

by | April 7, 2022 | bobsguide

US turnkey digital wealth management platform, Unifimoney, has raised $10m in seed funding to expand its alternative assets offerings and services.

The financing will support the extension of the company’s coverage of alternative assets including collectables, sports memorabilia and NFTs. It will also finance the development of a full suite of retirement accounts with both traditional and alternative IRAs.

Unifimoney also plans to launch an investment reward credit card that will allow customers of Financial Institutions to earn points.

Venture capital funds Oriza Ventures, Altair Capital, Global Millennial Capital, Plug and Play, White Bay Group, and Hard Yaka, alongside strategic partner Shop Your Way, banking group ICBA, and a group of angel investors participated in the funding round.

Earlier this year, the company integrated its platform with SaaS provider Jack Henry and financial experience company Q2 Holdings.

Established in 2019 by former Samsung Pay head of business development Ben Soppitt and CTO of RocketSpace, a US business consulting firm, Ed Cortis, Unifimoney currently offers a digital wealth management platform with trading of cryptocurrencies, passive and active investing in stocks and ETFs, as well as precious metals.

Unifimoney’s push into alternatives comes amid rapidly increasing growth in digital solutions for the traditionally mobile-averse wealth management industry. The market for wealth management platforms, worth just $3.8bn globally in 2021, is projected to grow by around 13% annually, reaching $8.25bn in value by 2027, according to research published this week by consultant, IMARC Group.

Movers and shakers

The figures are underscored by a raft of announcements in recent weeks by wealth managers launching digital platforms or partnering with existing providers to make financial planning and investment more easily accessible to consumers.

On April 6, Canadian challenger bank Neo Wealth launched a digital wealth management app offering the opportunity for retail investors to allocate to cryptos, hedge fund-style strategies, infrastructure, and real estate.

On April 5, Portuguese bank Novobanco announced that it had partnered with fintech Objectway to leverage its digital financial advisory platform.

Meanwhile, financial behemoths are looking to carve out larger slices of the pie. Barclays’ digital wealth management service has been live since 2020, targeting clients with over £5000 in investable assets.

In December 2021, Santander was revealed to be prepping a similar robo-advisor service with tech firm SigFig. The app, Santander PathFinder, will target clients with over $2000 in investable assets and provide users with the opportunity to invest in a range of ETFs.

In the traditional wealth advisory market, UK wealth manager Hargreaves Lansdown, which already has a widely used digital platform, laid out its plans to revamp its digital offering, culminating in a new platform launch in 2024.

The platform will leverage open finance, offering access to financial products from a range of providers.

Hargreaves Lansdown plans to shell out £175m on new technology over the next five years, including a migration of client data to the cloud.

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