Everything You Need to Know About Nest Wealth and National Bank's Partnership

Posted on February 26, 2021

Whether you've never invested or have done so for a while, you can always learn more. With the Nest Wealth National Bank partnership, investing will be even easier for people across Canada.

Individuals and investment brokers can take advantage of the partnership between a large bank and a smaller financial tech company. Here's how.

A Brief History

The partnership of a fintech company like Nest Wealth, and a large bank such as National Bank, is exciting. Now, people across Canada and of all income levels can learn about investing and improve their portfolios. 

Nest Wealth's platform helps with investing, so National Bank will be able to use the fintech company's technology. After the initial collaboration, the bank and tech company were able to see some success. confused

Investors and National Bank employees can take advantage of National Bank's savings experience. The partnership allows people to use NestWealth's technology.

Now, people can take advantage of Robo-advisors and the security of a traditional bank.

Initial Investment

Nest Wealth and National Bank have worked together since 2017. At first, National Bank invested $6 million in Nest Wealth. The agreement came with the ability to license the Nest Wealth investing platform.

The partnership has allowed brokers and portfolio managers at the bank to use products like Nest Wealth Pro. A Pro account offers more features than a standard account, so National Bank clients can invest and save even more.

Now, National Bank has invested about $40 to $50 million in Nest Wealth. The current partnership grants the bank more access to digital development with the tech company.

National Bank is investing in Nest Wealth through its venture capital arm. The partnership also includes a commercial deal.

In this agreement, Nest Wealth will help with? National Bank's retail division. Nest Wealth will also help with the technological side of the National Bank Independent Network (NBIN).

National Bank and Nest Wealth - The Partnership

With the National Bank Nest Wealth partnership, Nest Wealth will remain an independent company. National Bank has a minority stake in the company, but that's not enough for Nest Wealth to lose ownership.

Randy Cass, Nest Wealth founder and CEO, as well as employees and management, will retain control.

The company will have more resources working with a large bank. However, its main purpose and goal will not change.

NBIN Compass

One of the bigger developments from the National Bank Nest Wealth partnership is the development of NBIN Compass. Investment brokers and portfolio managers use the system for client firms and advisors.

The National Bank Independent Network (NBIN) already provides trading, settlement, record-keeping, and other services. Now, independent portfolio managers and dealers can take advantage of some features that Robo-advisors have.

The Compass system's initial purpose was to act like a robot in terms of administration. But the partnership will lead to beneficial changes for investors and clients.

Thanks to Nest Wealth, National Bank can change how clients invest, no matter where they live in Canada. The company's technology and team will help develop the best investing system for the bank. not sure if sentences link

Creating More Features

The partnership between Nest Wealth and National Bank will also result in more features for the Compass system. One of the biggest features is in administering accounts.

There will be all-in-one administrative tasks. These can include reminders about client accounts and actions on those accounts.

So if a manager needs to open an RRIF account, the system can help set that up. The system will also help with digital account opening and account transfers.

This will give investment brokers and portfolio managers more flexibility and control. That way, they can still help clients with their financial goals and plans.

Who Will Benefit?

As Nest Wealth helps National Bank with its technology, many parties will benefit from the partnership. For one, the two institutions will benefit from the other's strengths.

Nest Wealth will have more access to funding and resources. And National Bank will have a team of technical professionals to help improve digital banking.

Portfolio managers and independent brokers, and the NBIN as a whole, will also be able to use more features in NBIN Compass. As the system gets more features, finance professionals will be able to help their clients as well.

So anyone who meets with an advisor using the system will enjoy some benefits. Robo-advising has become more popular in recent years, but it can still be scary.

Luckily, the Nest Wealth National Bank partnership will combine traditional and Robo-advising to help anyone throughout Canada.

What Are the Fees?

Nest Wealth offers the lowest monthly fees for investing in Canada. Investments under $75,000 cost $20 per month per client.

From $75,000 to $150,000, the price is $40 per month per client. Investments over $150,000 cost $80 per month per client.

Nest Wealth works with custodians at National Bank. The company will cover your custodian fees over $100 per year, so you can trade as much as you want.

You also won't have to pay any account fees for your first account when you use Nest Wealth.

Trading fees with National Bank are $9.99 per trade. For anything after your first account, you will have an account fee. Registered accounts cost $100 per year, while non-registered accounts are $75 per year. sentences out of order?

Is Nest Wealth Pro Worth It?

Nest Wealth Pro is great for investment brokers and portfolio managers with many clients The system can help automate your investment products and processes.

You can use it to manage your business and encourage prospects to become your clients. The program can also help you interact with your clients based on their preferences and interests.

Consider getting a demo if you want to improve your investment business. That way, you can scale your business more easily.

The Future of Investing

The Nest Wealth National Bank partnership is an extension of their current relationship. Not only will it help both organizations, but it can also help Canadians invest and save more easily.

From a more robust NBIN Compass to affordable investing, working with Nest Wealth is an exciting deal for individuals and investment brokers alike.

Do you need more financial help? Get an insurance quote from Insurdinary to further help plan for your future.

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