In a bid to address financial inclusion and to tap into African markets, Standard Chartered’s innovation arm SC Ventures has teamed up with Old Mutual to launch a wealth platform.
Standard Chartered has partnered with Pan-African financial services group Old Mutual to jointly launch a wealth platform to make financial and wealth planning accessible to users in the Middle East, Africa and Southeast Asia regions, according to a statement released Thursday. A market with an estimated $2.4 trillion of investable assets.
The collaboration, made through SC Ventures, Standard Chartered’s innovation, fintech investment and venture arm and Old Mutual’s investment arm, NEXT176, seeks to address financial inclusion and improve access to budgeting and financial planning tools.
Merger of Two Ventures
The partnership will also see the merger of two ventures: SC Ventures-backed Autumn, a financial goals and wealth planning app incubated in Singapore, and NEXT176-backed 22seven, a budget aggregation and tracking app based in South Africa. The merger is subject to approval and is expected to close in the second quarter of 2024.
The wealth management platform will be headquartered in the United Arab Emirates (UAE) and will provide access to advanced budgeting, savings, and investment solutions for users in the Middle East, Africa, and Southeast Asia regions.
AI-led and Shariah-compliant
The platform will also bring simple, affordable, AI-led and Shariah-compliant wealth management solutions to users in the Middle East, Africa and beyond.
«The UAE and the Middle East are emerging as one of the leading destinations for wealth management globally — whether it’s high net worth income population, Millennials, or Gen Z — there is demand for technologically advanced and highly-customized wealth management tools supported by ongoing financial education,» said Benito Mable, venture and strategic partnerships lead for SC Ventures based in the UAE.
Combination of Literacy And Digital-first Platforms
Assets under management (AUM) in the Middle East increased by 16 percent to $1.2 trillion in 2022, according to consultancy Boston Consulting Group (BCG). The region is the fourth-largest wealth hub in the world and is expected to grow further.
«At SC Ventures, we believe strongly in improving access to financial services through a combination of literacy and digital-first platforms. This partnership is a strong example and will contribute to rewiring the DNA in banking and financial services in our communities,» said Alex Manson, who leads SC Ventures.
Exclusive to HNWI
In Africa, wealth management remains generally exclusive to high-net-worth individuals with at least $1 million in liquid assets, who can access private banks and advisor networks. The average individual lacks access to tools and products to plan, grow and protect their fortune.
