Edinburgh fintech Nucleus Financial looks ‘positive’ for the future as assets rebound to £ 16bn

Gross inflows of £ 373million were recorded in the third quarter at the end of September, down slightly from the previous quarter (£ 384million) due to the pandemic.

Net inflows for the quarter were down 26.1% year-on-year to £ 82million, but are up 44.7% year-to-date compared to the same period in 2019.

In its latest business update, the company noted that advisers actively using its platform have remained broadly stable compared to the comparable period. The number of customers increased by 4.1% year-on-year.

Despite the continued impact of the pandemic on investor sentiment and market growth, assets under administration (AUA) stood at £ 16.1 billion as of September 30, up 1.8% from in the previous quarter and 2.6% year-on-year.

In comparison, the FTSE All-Share index fell 3.8% year-over-year and 19.2% year-on-year.

Chief Executive Officer David Ferguson said: “Covid-19 is expected to dominate our lives for at least the rest of the year and is likely to have an ongoing impact for some time.

“In these difficult times, the health and well-being of our staff remains our top priority. Although we have reopened part of the office, in accordance with government guidelines, almost all of our employees continue to work from home.

“Despite a significant reduction in markets this year… our AUA at the end of Q3 2020 was back to where we started the year at £ 16.1 billion.

“Despite a weaker third quarter in terms of net inflows, our year-to-date position remains ahead at £ 515m from £ 356m in 2019, an increase of 44.7% from compared to the same period last year It should be noted that in terms of gross collections, if they fell in August, the September figures are more positive.

He added, “Our goal throughout the pandemic has been to make sure we are well prepared for the months and years to come, focusing on the things that matter to our business and that are under our control.

“It means a commitment to continue investing in the platform. The third quarter was no exception.

“While the future impact of the Covid-19 crisis remains unknown, there has perhaps never been a more pressing need for high-quality financial planning, and as such, we remain positive about in the long-term future of the industry. “

Nucleus, which Ferguson created with the support of a number of financial advisory firms in 2006, has developed software platforms that allow financial advisors to provide online access to clients for investments in ISA accounts, pensions and bonds.

The ‘wrap platform’ provider, which was launched in 2018, is considered one of the biggest successes in Scotland’s burgeoning fintech – fintech – sector.

Last month, Nucleus said it saw customer numbers surpass 100,000 after posting resilient first-half results despite investor sentiment hit by the coronavirus crisis.

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