John Lewis also becomes a fintech company

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John Lewis, the company that owns and manages 42 department stores across Britain, is becoming a fintech company.

How investing with John Lewis will work

In fact, with its subsidiary, John Lewis Finance is launching on the market its first investment products aimed at its customers, thanks to a partnership with digital asset manager Nutmeg. 

 

Nutmeg was recently acquired by JP Morgan and will provide all the legal and technology platforms that will enable John Lewis to offer an investment account with equity, individual savings accounts (ISAs), and Junior ISAs. 

How investing with John Lewis will work

John Lewis’ official press release states that Nutmeg is the UK’s largest digital wealth manager, managing over £3.5 billion on behalf of over 140,000 clients. Overall, it is the fourth largest wealth manager in the UK and one of the fastest-growing. 

John Lewis Partnership clients will be able to invest up to £100 for a Junior ISA and up to £500 for a general investment account or in equities. 

The company says it made this decision based on research with its customers, as it was found that they trust a brand like John Lewis. The aim is to help those who would otherwise not consider investing, following the launch of previous offerings on home insurance and, of course, retail credit.  

The number of investors in the UK

The company cites a recent survey conducted by OnePoll in the UK, revealing that 52% of people say the pandemic has prompted them to re-evaluate how they spend and save their money. 

The fact is that those who intend to save money have increased by almost 20%, intending to spend that money in the future on, for example, starting their own business or moving to a bigger house or the countryside, or getting married, starting a family or a future vacation.

As many as 72% of respondents said they would consider investing in equities rather than keeping money in their current account, with 59% adding they had no idea where to start. 

And so John Lewis Partnership’s financial firm decided to launch a user-friendly service just to help its customers save and invest. 

This strategy reveals quite clearly just how important financial services are becoming to retail customers and how many companies with a large user base are becoming interested in the financial services business. Then again, retail investors can be great customers, especially since they are often looking for help or assistance when it comes to investing. 

Investments to overcome the pandemic

John Lewis’ director of financial services, Amir Goshtai, said: 

“The pandemic has been tough for many, but others have managed to save more every month. They’ve also reassessed how they want to spend their money – more than ever, they want to secure their financial future and that of their families. Our products allow people to put money aside and to take that first step into what is often perceived as the complicated world of investments. This is where the trust and love that customers have for our brand combined with Nutmeg’s expertise can make a difference, while making John Lewis even more relevant for life’s big moments; whether that’s saving for a home or preparing for the arrival of a new baby.”  

Nutmeg CEO Neil Alexander added: 

“Since the start of 2020, we’ve seen a significant increase in people looking to invest in order to build a more dependable financial future for themselves and their families. Nutmeg’s mission has always been to empower nations of investors and there’s never been a more important time to harness this new appetite. Through our partnership with John Lewis, we’re providing an easy-to-use service and investments that meet the growing demand for social responsibility to help John Lewis customers build a financial future for themselves and their families.”

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