By Samuel Norman
Copyright cityam
Lloyds Banking Group is looking to ditch its wealth tie-up with Schroders and take control of the six-year old unit.
The FTSE 100 titan is poised to buy out Schroders’ 49.9 per cent stake in Schroders Personal Wealth (SPW).
The transaction would hand full control over to Lloyds as the bank sets out to expand its wealth offering.
“The group has over three million mass affluent customers and its strategic aim is to deepen these relationships including in high value segments,” a Lloyds spokesperson said.
“We are building an end-to-end wealth offering, from execution-only digital investments and pensions, to full financial planning and advice through SPW.”
Lloyds joins peers in doubling down on wealth
The news, first reported by the Financial Times, comes amid Charlie Nunn’s five-year overhaul on the lender.
Nunn, along with his banking chief peers, is looking to strip back operations and lean into profitable lines such as wealth.
HSBC’s Georges Elhedery has doubled down on wealth ambitions after laying out plans last year to double the groups’ assets under management to £100bn within five years as it aims to become a top five player in the wealth manager scene.
SPW – which launched in 2019 – allows Lloyds to use Schroders’ technology and investment platforms whilst the wealth manager was opened to Lloyds’ client base.
The group serves around 60,000 with near £17bn in assets.
Earlier this year, Lloyds’ wealth push faced a disruption after Jo Harris, the chief executive of the bank’s mass affluent division, departed within days of the launch of its new service.
Harris led the bank’s division focusing on customers with £100,000 to £1m of annual income or investible assets.
ln May, she launched its new “premier” service which includes a “current account with exclusive benefits and offers, financial coaching and tailored lifestyle perks”, according to a LinkedIn post by Harris announcing its launch.
The account also offers users GP and wellbeing services, lifestyle benefits, travel perks, cashback, discounted mortgage rates and appointments with financial coaches, among its benefits.
