Ikigai: Digital Banking & Wealth Management

Ikigai: A New Premium Fintech for High-Net-Worth Individuals

Ikigai, a fintech company based in London and established by ex-McKinsey consultants, believes there's an opportunity within the competitive challenger banking landscape to introduce a new, premium service.

This offering uniquely integrates digital banking functionalities with comprehensive wealth management tools. The company is currently focused on iOS users and provides both current and savings accounts, alongside related wealth management capabilities, all accessible through a unified application and card.

Targeting Affluent Aspirants

According to the founding team, a gap exists in the market for a modern, digitally-focused banking experience that also delivers the high-end banking services traditionally reserved for wealthier clients of established banks.

“Our core demographic tends to be younger, typically in their late twenties or thirties,” explains Ikigai co-founder Edgar de Picciotto. “They are at the peak of their earning and spending potential and are actively planning for their financial future. While not currently high-net-worth individuals, they possess ambitions and objectives and desire greater control over their finances.”

A Subscription-Based Model with Personalized Support

Ikigai distinguishes itself by implementing a flat subscription fee rather than a freemium structure. New users are immediately assigned a dedicated relationship manager, a feature uncommon among digital-first banks.

The platform includes a standard “everyday” spending account and a dedicated savings section, named “nest”. The “nest” account operates independently, possessing its own account number, yet can be readily funded from the primary spending account.

Wealth Management Powered by BlackRock

While the core banking features may seem familiar, Ikigai differentiates itself further through its wealth management services. It offers “fully managed, globally diversified investment portfolios” within the app.

These portfolios are constructed and overseen by Ikigai in collaboration with the renowned asset manager, BlackRock, taking into consideration individual risk tolerance and financial goals.

Addressing Personal Frustrations

“Ikigai originated from a personal need we identified,” states de Picciotto. “Existing options felt slow, impersonal, and heavily focused on promoting lending and debt products. It often felt as though either the technology or the human element was lacking, but rarely both.”

Maurizio Kaiser, Ikigai’s other co-founder, adds, “Banking can be incredibly time-intensive, and investing even more so. Individuals face a substantial workload when managing their finances independently. It can easily become a second job, constantly analyzing stocks and shares. Few have the time for such detailed oversight.”

Behavioral Trends Among Young Affluent Individuals

Through their experience as management consultants, the founders uncovered “interesting behavioural trends,” particularly among younger, affluent demographics.

“This generation expects significantly more from their banks than previous ones,” says de Picciotto. “They demand faster, fairer, and superior experiences, with specific expectations that current financial institutions fail to meet. This includes viewing personal finance as a form of self-care, prioritizing lifestyle banking over traditional lifestage banking, and aligning their finances with their values and aspirations.”

Leveraging Banking-as-a-Service

Unlike many early challenger banks that prioritized building their own core banking infrastructure, Ikigai is strategically partnering with technology providers, including Railsbank and WealthKernel.

“Utilizing banking-as-a-service providers streamlines our ability to realize our vision,” explains de Picciotto. “It allows us to concentrate on our strengths and what truly matters to our customers: the user experience.”

Critiques of Existing Banking Models

Ikigai’s founders contend that both traditional banks and existing challenger banks exhibit “significant” shortcomings.

Traditional institutions rely heavily on physical branches and telephone support, and their business models are often centered around cross-selling and up-selling, particularly loan products, to offset the costs of offering current accounts.

Challenger banks, while “faster and more accessible,” are increasingly automating customer support and, in some instances, concealing live chat options to minimize operational expenses.

“Providing a high-quality service is fundamentally incompatible with offering banking services for free,” concludes Kaiser.

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