wealthmanager

Swiss Fintech Gets an Investment from a Large Bank

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July 12, 2017

Another major bank has understood the value in investing in fintech, this time in Switzerland. Swiss-based private bank Julius Baer announced its investment in Nectar on Tuesday. The investment is the second big name to invest in the wealth management provider.

 

The latest investment in Nectar

 

The details of the new investment remain unknown. Nectar made the announcement via a newsletter on its website. The closed venture round saw the Swiss bank take a minority shareholder position in the company. The size of the shares or the amount invested have not been made public. Furthermore, spokespersons for Julius Baer have not commented on the deal, other than to acknowledge it has taken place.

 

Michael Appenzeller, co-founder and CEO of Nectar Financial, said in the statement, “We are delighted to close the financing round with a prestigious and forward looking financial services player. The bank’s investment into Nectar is a vote of confidence in the potential of our business model and of our technology.”

 

The controlling stake in the technology company belongs to the founders Pius Stucki and Appenzeller, as well as the management team. The other minority stake is held by Urs Wietlisbach, co-founder of Partners Group.

 

Previous major investment

 

Indeed, Wietlisbach is the other major investor in the Swiss fintech firm. Wietlisbach is one of the founders of the private equity asset management company Partners Group. Last October, Nectar announced he is to contribute to the financing of the fintech’s next growth phase and take a minority stake in the firm.

 

In addition, the family office managing the assets of Partners Group’s founders announced it would become a client of the fintech firm. The firm has since attracted over 30 customers, including family offices and independent asset managers. Furthermore, the platform currently has around 35 billion Swiss francs worth of assets under management.

 

The fintech firm launched a new Wealth Management Platform earlier this year. The platform makes client relationship and portfolio management streamlined, and the firm is currently working on other innovations.

 

Nectar also hired a two-man in-house investment team last year. Steven Kaufmann and Andreas Gilgen will lead a team that provides Nectar’s client investment support and advice.

 

Banks keeping a close eye on fintech firms

 

The investment is another example of bank’s willingness to keep an eye on fintech firms. DealMarket wrote last week how banks are trying to keep up with fintech innovation, which could pose a threat to their dominance of the financial services industry. According to estimates, banks have the potential of losing 60% of their retail profits to technology startups. While wealth management is not part of this equation, banks will still want to ensure they are part of the technology revolution of the financial sector – once the customer takes the road of using more technology to manage some finances, the use can snowball into other areas.

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