Virgin Money Secures Full Control of Digital Wealth Platform

Virgin Money is set to assume full control of its digital wealth management platform, following the acquisition of joint investor abrdn’s stake for £20 million.

Overview of the Platform

Debuting in April last year, the direct-to-consumer (D2C) platform offers both novice and seasoned investors online and mobile access to three different investment funds, within an ISA or GIA. The platform has expanded its business by adding a pension product, allowing users to save from as little as £25 a month, and transfer existing pensions to the platform.

As of the end of last year, Virgin Money Investments was managing approximately £3.7 billion in assets and over 150,000 customer accounts.

Future Plans

Allegra Patrizi, Managing Director for Business and Commercial at Virgin Money, said that taking full control of Virgin Money Investments will enable the bank to integrate the investments and pensions business with its other services, such as deposits, mortgages, credit cards, and daily banking.

Virgin Money aims to double the number of assets under management within the next five years.

Virgin Money Investments’ existing staff will be absorbed into Virgin Money, with no anticipated job losses.

Impacts on abrdn

For abrdn, the buyout price leads to a 60% loss on the value of its initial £50 million stake in the joint venture. However, abrdn will continue to provide investment management services to the business.

This decision comes on the heels of abrdn’s recent announcement to cut 500 jobs in an effort to save £150 million from its annual costs and increase profitability. An abrdn spokesperson stated that due to the acquisition of interactive investor and ongoing business streamlining efforts, the joint venture with Virgin Money no longer aligns with their strategy.