Through a number of recent initiatives, our subsidiary Power Financial, in partnership with its subsidiaries Great-West Lifeco and IGM Financial, have been actively participating in the emerging fintech industry.
The Power Financial group believes that fintech will change business models in financial services, making financial advice, insurance and investment services more accessible to consumers and available to them by the means and at the times that best suit them.
Power Financial’s fintech strategy has three objectives:
1) Through Portag3, create an ecosystem with early-stage investments in promising technology companies that have potential for global impact;
2) Make significant investments in leading digital financial services providers, such as Wealthsimple and Personal Capital; and
3) Through Diagram, develop a fintech venture builder to support the creation of the next generation of Canadian-based global fintech companies.
This fintech strategy aims at providing an attractive return on the capital invested while helping our existing financial services businesses transform their models. It also enables the group to learn new technology applications, how these disruptive business models will affect the current business and how to react to changes in the environment in order to be more effective.
Portag3 Ventures manages investment funds dedicated to backing innovative financial services companies that have the potential for change and global impact. Portag3 Ventures brings together Power Financial group companies and outside investors to build an interconnected fintech ecosystem that scales portfolio companies, shares market insights, and leverages collective distribution power to drive financial services innovation across the globe. To date, Portag3 Ventures has invested in more than 30 fintech companies and several investment funds globally.
Wealthsimple is one of Canada’s largest and fastest growing online investment managers providing globally diversified portfolios of low-cost index funds. Wealthsimple has attracted over 100,000 customers and had more than $3.4 billion in assets under administration at December 31, 2018. It currently offers its products in Canada, the United States and the United Kingdom.
Our subsidiary IGM Financial invests in Personal Capital, a market-leading U.S. digital wealth advisor for mass affluent investors. Personal Capital’s approach to wealth management is to combine dedicated financial advisors with innovative customer-facing technology. Led by a market-leading and experienced team with a long track record in financial services, Personal Capital has been growing rapidly in the mass affluent and high-net-worth investor segments of the market, offering a unique, compelling and valuable proposition for its clients.
Diagram builds companies that pursue transformational innovation in the financial and insurance sectors. Diagram combines venture capital investment, incubator-style support and competitive advantages of large incumbents into a unique, entrepreneur-friendly model. As a leading venture builder, Diagram offers founders a unique platform to launch a business, scale it, and pursue global success.