National Bank investing $6 million in Nest Wealth, plans to integrate its robo-advisor tech

Toronto-based Nest Wealth, a digital wealth management platform, announced that it will receive a $6 million investment from Montreal’s National Bank.

The deal is part of multiple agreements between Nest Wealth and National Bank, which include Nest Wealth licensing its investment technology to National Bank to help its advisors manage clients’ money using digital practices. While Nest Wealth and National Bank announced the agreements, they said the transactions are still subject to regulatory approval.

“This is a huge vote of confidence in Nest Wealth’s vision by one of the oldest and largest financial institutions in Canada.”
– Randy Cass

Founder in 2014, Nest Wealth’s platform uses technology to create and monitor investment portfolios for investors and businesses. The company’s main product, Nest Wealth Pro, provides traditional advisors and their firms with the same technologies that robo-advisors use. Clients can sign up with advisors through a digital onboarding process, which includes the collection of know-your-client and risk profile information. They can also check their accounts and communicate with advisors through a computer, tablet, or mobile device.

“With this agreement, National Bank is increasing its digital services to end clients while continuing to emphasize the importance and value of financial advising relationships,” said Martin Gagnon, the co-president and co-CEO of National Bank. He added that Nest Wealth’s technology will be used to “augment and complement our present platforms, thereby equipping our advisors with an additional working tool that will take our investment offer to the next level.”

In a blog post, Randy Cass, Nest Wealth’s founder and CEO, said that Nest Wealth’s agreements with National Bank will bring the company security while allowing it to maintain its independence.

“This is a huge vote of confidence in Nest Wealth’s vision by one of the oldest and largest financial institutions in Canada, and gives us additional resources to keep up with rapid growth,” said Cass. “Maintaining our independence and being able to guide our own future was of utmost importance to us when evaluating different funding opportunities. As a minority shareholder, National Bank will bring expertise to our company, but the majority of Nest Wealth still remains in the hands of our employees.”

In March, Nest Wealth partnered with Vancouver-based Credential Financial to give Credential’s partner firms access to Nest Wealth’s platform and in August 2015, the company raised $1.5 million in funding from Metroland Media Group.

Amira Zubairi

Amira Zubairi

Amira Zubairi is a staff writer and content creator at BetaKit with a strong interest in Canadian startup, business, and legal tech news. In her free time, Amira indulges in baking desserts, working out, and watching legal shows.