Digital Margin Lending

Part
01
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Part
01

Competitive Landscape - Wealthsimple and Nutmeg

Wealthsimple wants to help people start investing by removing the regular high fees and account minimums that comes with traditional investment management. Similarly, Nutmeg is marketing their service as democratizing wealth management by minimizing costs and charges and boosting customers' returns. The end-goal of these companies may be very similar, but they have very different target markets. Below is more information about each of the company's background, product offerings, and target audience.

WEALTHSIMPLE

Product Offerings

Target Audience

  • Wealthsimple is targeting millennials who want to start saving very early in life.
  • The company is also targeting young people who do not trust big banks and dislike paperwork.

NUTMEG

Product Offerings

Target Audience

Part
02
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Part
02

Competitive Landscape - Wealthify and Moneyfarm

Moneyfarm is based in London and has received a total of $127.3 million in over 8 funding rounds from several investors. Wealthify was acquired by the Aviva Group in October 2017, they are based in Cardiff, UK. The required information on the companies Wealthify and Moneyfarm have been provided below.

WEALTHIFY

Overview

  • Wealthify was founded in October 2014 and was launched to the public in April 2016.
  • The company was co-founded by Dr Richard Theo, Richard Avery-Wright, and Michelle Pearce, to provide a "low-cost, easy to use" investing platform for everyone, irrespective of their investment experience or wealth.
  • The company is headquartered in Cardiff, UK, and employs 32+ people.
  • The company has received a total funding amount of £1.1 million.
  • Wealthify acquired by the Aviva Group in October 2017.
  • Wealthify is regulated and authorized by the Financial Conduct Authority (FCA) in the UK, and backed by Aviva, the global financial services company.

Products

Target Audience

  • Wealthify targets the mass market. They intend to convert 1 million UK savers to investors in the next decade.
  • The company states that they target everyone irrespective of their investment experience.
  • The company's products generally appeal to two major groups of people, who are existing investors and frustrated savers.

MONEYFARM

Overview

  • Moneyfarm launched in Italy in April 2012, and in the UK in February 2016.
  • The company was co-founded by Paolo Galvani and Giovanni Dapra and is headquartered in London.
  • They have over 130 employees and serve 40,000+ customers across Europe.
  • Moneyfarm has received a total funding of $127.3 million across 8 funding rounds, with the latest being a Series C round in September 2019.
  • The company guarantees its customers investment coverage up to £85,000 from the UK deposit guarantee scheme. They are also authorized and regulated by the Financial Conduct Authority (FCA) UK.
  • Some major investors in the company are Allianz Global Investors, Cabot Square Capital, United Ventures, UK Private Equity Firm, and Ventures Capital Fund.

Products

  • Pension: This service is a "fully managed, self-invested personal pension" (SIPP) where a customers pension is managed by the company's investment team.
  • Pension Drawdown: This service offers customers flexibility in accessing their pensions, either by generating steady incomes, withdrawing lump sums or both.
  • ISA: Moneyfarm offers its customers a "flexible. tax-efficient, and fully managed" stocks and shares ISA to enable them to achieve their financial goals.
  • General Investment: The company offers its customers a low cost and flexible general investment account tailor-made to the needs of each customer, and managed by their in-house experts.

Target Audience

  • Moneyfarm targets millennials in the UK and Italy, providing them expert advice to enable them make informed investment decisions.
  • The company does not target novice investors, instead, they are focused on serving financially experienced people who are unable to invest by themselves due to lack of time or confidence, or possibly due to other more pressing priorities.

RESEARCH STRATEGY

To fulfill this request, we commenced our research on the website of both companies to ensure we retrieve first-hand information. Using this method, we were able to retrieve overview information on both companies, their products, and information on their target audience in the case of the company Wealthify. For Moneyfarm, we made use of other sources such as the company's page on Medium to retrieve information on its target audience. We have provided a detailed report of our findings in our write-up above.
Part
03
of six
Part
03

Competitive Landscape - Scalable and Brewin Dolphin

Scalable Software was founded in 2008 and is a developer in SaaS based IT Asset Intelligence that provides assistance to companies without perceptibility in IT inventory. Brewin Dolphin manages around £42.4 billion in client money.

SCALABLE

Company overview

  • Founded in 2008, Scalable Software operates as a developer in SaaS-based IT Asset Intelligence assisting companies without clarity in asset location, IT inventory, license liability, and usage.
  • The company was created with a vision "to build a true PaaS on which ITAM applications could be built recognizing that SaaS was the wave of the future."
  • They trade and support their solutions through a system of long-standing global partner relationships.
  • Scalable's global headquarters is located in London, while its US headquarters is in Austin, Texas.
  • Scalable Software claims to be a pioneer in SaaS-based IT Asset Management, with a continued concentration on assuring that it facilitates reduced costs for companies and is ready for the transient nature of IT assets.
  • Many organizations globally utilize its solutions to manage expense across their IT estates. These companies have reported a significant ROI, along with a decrease in their total cost of ownership.

Product offerings

  • Asset Vision Workstation: Scalable's Asset Vision Workstation provides assistance with cost reduction by distinguishing assets that are underutilized and underperforming. Some key feature of the workstation include location mapping, license allocation and reconciliation, multiple licensing metrics, entitlement importing, consolidation of all inventory sources, etc.
  • This product acts as a software usage metering technology and provides its user with a forensic-level usage analysis of web applications, virtual desktops applications, and virtual and traditional and applications.
  • Server resources such as SQL Server databases and Oracle are accessible through the asset vision workstation. Through the identification of software and hardware assets which can be recycled, retired, or reconfigured, the work station helps reduce cost.
  • Asset Vision Mobile: "Asset Vision Mobile enables the non-intrusive management, configuration, and securing of endpoint devices such as iPhones, iPads and Android devices".
  • With the help of Mobile Device Management features, Asset Vision Mobile supports a mobile workforce to maintain similar resource access and protections as the established on-premise workstations.
  • Some key features of Asset Vision Mobile include complete Apple device enrollment program assistance, detailed device inventory, successful integration with internal directory systems, automatic identification of breach of policy.
  • Asset Vision Server: The Vision Server helps its user to obtain precise and updated data with no disruptions.
  • Asset Vision Server provides the background information required to support IT and ITSM operations in corporations of all sizes.
  • Some key features include virtualization awareness, SQL Server and Oracle database discovery, discovered services, virtual server history tracking, and comprehensive baselines.

Target audience

  • Scalable Software's target market includes companies seeking to manage expense and ongoing cost management throughout their IT estates whether its mobile environments, public cloud, on-premise, or hybrid cloud.
  • Scalable is also targeting companies interested in SaaS offering, cloud management, and SAM and ITAM.

BREWIN DOLPHIN

Company overview

  • As stated on the 'About Us' section of its website, "Brewin Dolphin was founded on the belief that the successful management of wealth takes an understanding of money but is rooted in an even deeper understanding of people."
  • According to Crunchbase, the company serves as one of the United Kingdom's top suppliers of personalized and unrestricted wealth management services, providing financial planning, as well as investment management, services to satisfy investors and intermediaries.
  • The company claims to be an independent corporate group, and therefore, provides impartial guidance from an array of investment possibilities.
  • Brewin Dolphin is experienced in assisting individuals with thinking through the challenges and possibilities that impact them to fabricate investment portfolios and financial plans.
  • They claim to have the capacity to develop strong relationships and has about 30 different offices throughout Ireland and Britain to help bring them close to the people they serve.

Product offerings

Target audience


Part
04
of six
Part
04

Competitive Landscape - Barclay Wealth and HSBC Premier

Barclays Wealth and HSBC Premier are both services offered by major banks in the UK for wealthier or high-earning households. Both offer preferential daily banking accounts, advisory services and dedicated relationship management.

BARCLAYS WEALTH

OVERVIEW
  • A division of Barclay's Bank, Barclays Wealth Management offers tailored and proactive wealth management solutions for individual customers.
  • Members gain access to a 24/7 Wealth Services team, their own Wealth Management Executive for day-to-day and executions as well as a dedicated Wealth Manager for planning and advisory purposes.
  • Offices with Wealth Management personnel are located all over the UK.
PRODUCTS OFFERED
  • This sector of Barclays Bank offers a special wealth current account, special credit cards, savings accounts, planning services, advice services, lending and mortgages.
  • Their services can be tiered from simply executionary services to full-service discretionary banking.
TARGET AUDIENCE
  • Barclays Wealth Management offers its services to wealthy individuals (this is, unfortunately, not defined on their website nor in literature), charities, professionals and entrepreneurs.
REVENUE
  • The annual report for Barclays Bank does not offer revenue breakdown for just its wealth management. The closest available revenue is that Barclays Bank made £772 million on advisory services and £1.002 billion on brokerage and execution.
  • Barclays Bank's total revenue for 2018 was £13.6 billion. This includes its Barclaycard business, which has a significant global reach.
CUSTOMER COUNTS
  • No Wealth Management (or even total) customer figures are published in Barclays Bank's annual report.

HSBC PREMIER

OVERVIEW
  • HSBC Premier is a range of preferential products and services suitable for households with an annual income of £75,000 or more. Applicants are required to have either £50,000 in savings or another HSBC product like mortgage or insurance.
PRODUCTS OFFERED
  • HSBC Premier Account holders can gain access to special current and savings accounts, Premier credit cards, investment advice, special ISAs, mortgage services, children's accounts, wealth management services, advisory services, Premier mortgages, insurance and worldwide/international banking solutions.
  • The current, savings, loan products and credit cards have preferential rates for Premier members.
  • Premier members gain access to an online personalized portfolio, online sharedealing and an online fund platform.
  • Members can use HSBC advisers to create custom financial plans.
TARGET AUDIENCE
  • HSBC Premier accounts target "mass affluent and emerging affluent customers who value international connectivity," individuals and families. Additionally, thanks to HSBC's global network, Premier account holders from other countries can open a UK-based Premier account with relevant proof of address.
  • Premier is not intended for HNWI and UHNWI, as these persons are targeted with HSBC's Private Banking solutions.
REVENUE
  • Revenue from only Premier customers is not available in the HSBC annual report.
  • HSBC's total annual revenue from retail banking and wealth management was $7.1 billion worldwide.
CUSTOMER COUNTS
  • HSBC has 38 million individual customers, but it is not stated how many of them are Premier account holders.

RESEARCH STRATEGY

The two pieces of information that were not available for either entity were the revenue of the segment and the number of customers. Neither company offers this information in their annual reports. We also looked for expert and financial analysis which may estimate or speculate on these figures, but there were none available in the public domain. Reports from the national regulator, the Financial Conduct Authority, do not give customer figures or revenues by segment. We checked both the register and publications by the FCA. Finally, we attempted to see if any figures could be triangulated by looking at expert analysis, market research and published reports to find a percentage of customers (or revenue) that use wealth management services with commercial banks. We do know that around 17% of the population use any type of financial adviser, but this does not tell us how many opt for these services within their bank or have the income to subscribe to specific wealth management services. Therefore, we concluded that this information was not available, as it is not required to be reported and neither bank has elected to do so.
Part
05
of six
Part
05

Competitive Landscape - Lloyds Private Bank and Coutts

Both Llyods Private Bank and Coutts are banks focused on serving wealthy customers. Furthermore, both banks are prominent within the UK.

Llyods

1. Overview

  • Llyods Private Bank is an arm of Llyods Banking Group. Company overview information was only available for Llyods Banking Group, which we describe in the following findings.
  • The bank "is a leading UK based financial services group."
  • Llyods' main business segments are commercial banking, retail banking, corporate banking, insurance, investment provision, and pensions.
  • Llyods "operates the UK's largest retail bank."
  • Llyods is listed on the New York Stock Exchange and the London Stock Exchange.
  • The bank is among "the largest companies within the FTSE 100."

2. Products & Services Offered

3. Target Audience

  • Llyods Private Bank's target audience are people that have (1) investments and/or savings through Llyods Bank that total £250,000 minimum and/or (2) a Llyods Bank mortgage that equals or exceeds £750,000.
  • Those people are the bank's target audience because those are the two requirements for applying to become a Llyods Private Banking customer.

4. Revenue

  • The metric that Llyods Banking Group uses to report earnings for its Private Banking & Asset Management segment is "underlying basis total."
  • Accordingly, the underlying basis total for Llyods' Private Banking & Asset Management segment was £97 million in 2018, which equates to $106,503,288. We converted that amount from Euros to USD by using this currency calculator.
  • With regard to the company overall, the main metric Llyods Banking Group uses to report annual earnings is net income. Accordingly, Llyods' Retail segment had net income of £10.316 million ($11,326,679,623) in 2018.
  • Llyods' Commercial Banking segment had net income of £4.622 million ($5,074,826,795) in 2018.
  • Llyods' Insurance & Wealth segment had net income of £1.988 million ($2,182,768,427) in 2018.
  • Lastly, the remaining segment was listed as "Other" which had net income that totaled £842 million ($924,492,462) in 2018.

5. Customer Count

  • Since Llyods Private Bank is an arm of Llyods Banking Group, customer count information was only available for Llyods Banking Group. That information is presented in the findings below within this section.
  • Llyods Banking Group overall has approximately 26 million customers, rendering it "the largest UK retail financial services provider."
  • Llyods Banking Group reported that it has 15.7 million active digital banking customers, rendering it "the largest digital bank in the UK"

Coutts

1. Overview

2. Products & Services Offered

  • Coutts' service categories are Private Banking, Wealth Management, and Online Investing.
  • For Private Banking, Coutts offers borrowing, mortgages, commercial banking, and general banking services.
  • For Wealth Management, Coutts offers advice services, investment services, specialist planning services, and alternative investing.
  • Online Investing is a general service category.
  • According to another source, the bank "provides banking, lending and investment services, including early-stage investment opportunities and wealth services relating to inheritance tax, philanthropy and the running of a family business. The bank also provides financial education for clients’ children" (8)
  • Another source stated that the bank's "[s]ervices include investment management, securities dealing, trust planning, pension and tax advice, credit cards, and mortgages."

3. Target Audience

  • Coutts' target audience is wealthy people, as the bank is "famous for serving only millionaires."
  • Specifically, the target audience includes people who have (1) investable assets that total a minimum of £1 million or (2) an annual salary that equals or exceeds £500,000.
  • We know that people who meet one of the two aforementioned financial-means requirements are Coutts' target audience because those are the requirements for being a customer of Coutts.
  • Coutts has recently begun to expand its target audience by focusing on a younger demographic of wealthy individuals, specifically well-to-do YouTubers and gamers. The reason for that new focus is because the bank is working "to become more 'modern and contemporary' while keeping its roots and traditions."
  • We also found that approximately 85% of Coutts' clients are British.

4. Revenue

  • According to Hoovers, Coutts' estimated revenue (not specific to any particular year) is $1,022,230,000.
  • Also according to Hoovers, Coutts' estimated net income (not specific to any particular year) is $296,450,000.
  • The aforementioned data points were the only relevant ones we could find pertaining to revenue or other similar metrics.

5. Customer Count

  • Coutts had 14,000 customers as of 2017. That was the most-recent data we could find.
  • According to a 2017 article, Coutts had nearly 100 YouTubers and eGamers as customers.

Research Strategy

We began our research by reviewing both banks' annual reports, as those publications provide detailed information about the entities. Thereafter, we reviewed both banks' websites in searching for information about their services and products. The information we found about the banks' target audiences came from a combination of articles and from their direct websites. Revenue data wasn't publicly available for Coutts for a specific year, but we were able to find an estimate of annual revenue through Hoovers. Before turning to that data though, we searched for Coutts' annual reports (through the Royal Bank of Scotland), but no annual revenue data was included. Next, we searched for articles because we thought some might mention the bank's revenue, but that also didn't yield any results. For our third strategy, we also reviewed the bank's direct website, but that also didn't yield that information. Accordingly, we used the estimate found on Hoovers.

We looked for the customer count specific to Llyods Private Bank by using three different search methods. First, we reviewed Llyods Banking Group's 2018 Annual Report because we thought it might provide a breakdown of customer count by company arm (i.e. number of customers for Llyods Private Bank). The only customer count data we found in that report was for Llyods Banking Group overall and that data is included below as a proxy.
Second, we looked for articles pertaining to Llyods Private Bank's customer count, but we only found information about Llyods Banking Group. As a third strategy, we checked company database sites, such as Hoovers, Crunchbase, and Bloomberg, but that method also didn't yield any customer count data specific to Llyods Private Bank.
Part
06
of six
Part
06

Company Analysis - St. James Place

St. James Place provides wealth management services to individuals, families, trustees, and businesses across the UK. The Company's revenue in 2018 was $3.322 billion. St. James's Place has over 700,000 clients.

ST. JAMES PLACE

Company Overview

  • St. James Place Group was founded by Sir Mark Weinberg, Mike Wilson CBE and Lord Rothschild in 1991 and is based in Cirencester, England.
  • The Company started trading in 1992 under the name of the J. Rothschild Assurance Group.
  • St. James Place began Public trading on the London stock exchange in 1997.
  • In 1992, the Company founded a charitable foundation called St. James's Place Charitable Foundation. The charity has "raised and distributed over $99.9 million (£81 million) to charities."
  • Other awards of the Company include Best Wealth Planning Team and Best High Net Worth Team which were both won at the 2019 Wealth Adviser Awards.

Company Financials

  • St. James Place company's revenue in 2018 was $3.322 billion (£2.694 billion).
  • In 2018, St. James Place achieved a "full-year gross inflows of $19.36 billion (£15.7 billion). This represents an 8% increase over 2017 figures.
  • The Company's funds under management were a record $117.9 billion (£95.6 billion).
  • The Company's financial accounts show a company profit after tax of $213.9 million (£173.5m).
  • St. James Place employees are made up of about 3,954 financial advisers.
  • All financial figures are based on the 2018 annual report. The quarterly report released by the Company in 2019 is not factored in.

Products and Services Offered

  • St. James Place provides "wealth management advice, investment management and related services to businesses and individuals across the UK.
  • The Company's service segments include "Life business, Unit Trust business, and Distribution business."
  • The Distribution business segment encompasses the "Company's distribution network for the Company's life and unit trust products. Others are financial products, such as annuities, mortgages, and stakeholder pensions."

Target Audience

  • St James Place offers products and services which targets individuals and business owners.

Customer Counts

  • St. James's Place has over 700,000 clients.

RESEARCH STRATEGY

We were unable to provide a break down of the annual revenue by segment. We commenced the search for this data by scouring through the company annual reports. Here, we found information on the company's revenue and other key financial figures. However, a break down of the revenue into segments was not provided in the annual reports.

Next, we attempted to leverage data from media publications databases such as Forbes, Reuters, Bloomberg, among others. However, we were unable to identify a break down of the company's revenue into segments. The information available was on Company services.

As a last resort, we ran a general web scan hoping to uncover a break down of the annual revenue by segment. Unfortunately, we could not identify any actionable data. Hence, we have assumed that this information is not publicly available. This could be because it has not been published by the company.
Sources
Sources