Wealth manager and Financial Planner Quilter has acquired app-based fintech NuWealth to open up new opportunities in hybrid digital advice.

Quilter says the deal will support its aim of boosting its “digital capabilities” to better support customers and advisers.

NuWealth will work with advisers to help them support clients at the beginning of their investing journey, Quilter says.

The firm adds that NuWealth will enable new clients looking for additional help and guidance to work with a financial adviser later in the “investing journey.”

The deal will mean new digital clients can receive professional financial advice when they need it.

Quilter says the deal, for an undisclosed sum, will help with its plans to meet the challenges of the Treasury and FCA’s Advice Guidance Boundary Review which aims to close the advice gap by allowing cut-down, cheaper digital advice to reach more people.

Quilter says the acquisition will “accelerate” Quilter’s capabilities to deliver digital guidance to many more clients.

The acquisition will also support Quilter’s delivery of workplace advice provided by Quilter Financial Advisers, its national advice business, serving affinity advice partners.

Quilter CEO Steven Levin said: “We are excited to welcome NuWealth into Quilter. This acquisition aligns with our strategy to enhance our digital capabilities, ensuring we can support advisers to meet the diverse needs of their clients.

“As client expectations for digital engagement evolve, we recognise that robust technology solutions are key to reducing the advice gap and enabling advisers to reach and support a wider set of clients.

"Advisers have been asking us to support them with a proposition for their clients who are just starting out their investment journeys or not yet ready for a full advice offering. We will evolve NuWealth to help advisers serve these clients, promote the benefit of financial advice and prepare for future regulatory changes in advice and guidance.”

Kane Harrison, CEO of NuWealth, added: “We are thrilled to join forces with Quilter. This partnership will allow us to leverage Quilter’s extensive resources and expertise to better serve customers and create solutions for financial advisers. Together, we can drive innovation and provide more comprehensive digital solutions to meet the evolving needs of investors.”

Financial Planning Today Snap Analysis: This Quilter acquisition underlines the growing importance for wealth managers of having an offering in the digital space, particularly in light of the Advice Guicande Boundary Review which is likely to open the door to new forms of financial advice and guidance. Tomorrow's clients are likely to begin their investment 'journey' with a wealth app, turning to online video and other services to seek human financial advice when they need it and needs and portfolios grow larger. This deal is likely to be followed by many others although many larger wealth firms already have a presence in this area such as Hargreaves Lansdown and AJ Bell.