Allianz X's investment will help Purpose Financial build out its infrastructure for further growth and continue to expand its product offering. In addition, the investment is a first step towards a deeper strategic collaboration between Purpose Financial and Allianz.
“Purpose Financial is a disruptor in the Canadian financial services landscape, having established a unique position in its market, particularly with its digital platform for financial advisors. The company is also well positioned for further growth in asset management and SME lending. We see various opportunities to capitalize on joint business opportunities going forward, for example in developing and distributing retirement solutions and investment products,” said Alexander De Kegel, Deal & Project Manager at Allianz X.
Allianz X invested last year in Wealthsimple, a fast-growing robo advisor also based in Canada. The Canadian wealth management market is estimated to be worth CAD 4 trillion dollars. Currently, the market is dominated by banks, but strong growth is emerging from independent financial advisors and other non-bank platforms.
“Given the current macroeconomic challenges and the growing importance of providing joint Life Insurance and Asset Management solutions, this partnership is a significant opportunity for Allianz and Purpose Financial to leverage each other's expertise in financial services and digital technology,” said Cameron Jovanovic, Global Head of Retirement and Wealth Propositions of Allianz SE. “Retirement is a strategic growth pillar for Allianz, and we recognize the importance of creating holistic, digitally-enabled solutions for our customers. We see the partnership with Purpose Financial as a step forward in developing the innovative capabilities necessary to tackle the broad set of opportunities and challenges in the retirement sector, both in Canada and around the world,” he added.
“We are excited to welcome Allianz X as an investor and partner in our business alongside our existing investors OMERS and TorQuest,” said Som Seif, Chief Executive Officer of Purpose Financial. “Our business has grown exponentially since founding in 2013 and we are still in the early stages of our journey to innovating within the financial services industry. This partnership will provide us with additional resources and expertise to accelerate our growth and continue to drive innovation across the financial services sector on behalf of consumers.”