High street bank Virgin Money has agreed to buy a stake in Abrdn's investment platform for £20 million, less than a year after it was launched to customers.
The lender joined forces with investment giant Abrdn in 2019 to launch Virgin Money Investments, expanding its services from traditional retail products such as savings and loans.
In April last year, we launched a new digital platform, including a mobile app, to help people choose from a variety of investments.
A new pension product was later added allowing people to start saving from £25 a month or move their existing pension onto the platform.
As of the end of last year, Virgin Money Investments had assets worth around £3.7 billion and more than 150,000 customer accounts under management.
Virgin Money, which has about 6.6 million UK customers, said buying a 50% stake in Abrdn's platform would help it achieve its growth ambitions, including doubling the size of its assets under management within the next five years.
Allegra Patrizi, managing director of business and commercial affairs at the bank, said: “Our joint venture with Abrdn has successfully delivered a new investment service that provides clients with simple and straightforward investment options.
“Taking full control of Virgin Money Investments means we will be able to integrate our investment and superannuation businesses with deposits, mortgages, credit cards and day banking, enabling more customers to invest in their future with confidence and drive significant growth in their wealth. . “It’s being managed.”
The bank said it plans to move all staff in its investment arm to Virgin Money and does not expect any job losses.
Abrdn will continue to provide investment advice on the platform.