14th Feb 2024 10:58
(Alliance News) - High street bank Virgin Money UK PLC has agreed to buy abrdn PLC's stake in its investment platform for GBP20 million, less than a year after it was launched to customers.
The Newcastle-based lender joined forces with investment firm abrdn in 2019 to start Virgin Money Investments, expanding its offering from traditional retail products like savings and loans.
It launched a new digital platform, including a mobile app, for people to choose a range of investments in April last year.
A new pension product was later added, where people can start saving from GBP25 a month or move existing pensions onto the platform.
At the end of last year, Virgin Money Investments was managing about GBP3.7 billion worth of assets and more than 150,000 customer accounts.
Virgin Money, which has about 6.6 million UK customers, said buying abrdn's 50% stake in the platform will help it achieve its growth ambitions, including doubling the amount of assets under management within the next five years.
Allegra Patrizi, managing director for business and commercial at the bank, said: "Our joint venture with abrdn has successfully delivered a new investment service offering simple and straightforward investment options for customers.
"Taking full control of Virgin Money Investments will mean we can bring the investments and pensions business together with our deposits, mortgages, credit cards and daily banking, enabling us to help more customers feel confident to invest for the future and driving significant growth in assets under management."
The bank intends to move all staff from the investments arm into Virgin Money, and said it is not expecting there to be any job losses.
abrdn will continue to provide investment advice for the platform.
Virgin Money shares rose 0.9% to 158.03 pence each on Wednesday morning in London, while abrdn shares were 1.7% higher at 161.65p each.
By Anna Wise, PA Business Reporter
Press Association: Finance
source: PA
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