GoLogiq and GammaRey have merged to access the Generation Z wealth management market.
The companies announced the finalization of the $320 million deal Tuesday (Jan. 3), after reporting plans to merge last month.
“The combined company plans to initially focus on the high-growth market of wealth management for Generation Z and millennials,” GoLogiq said in a news release. “This new generation of wealth-builders represents the sharing economy that will be powered by digital banking solutions, such as virtual payments, lending and loyalty, all which can reside in a single, easy-to-use mobile application or embedded finance solution.”
The merger sees GammaRey, a financial solutions platform, become a wholly-owned subsidiary of GoLogiq, a consumer data platform, the release stated.
Meanwhile, GoLogiq said in the release that Chairman Brent Suen has been named interim CEO, taking over for Matthew Brent, who has stepped down to take an executive position at a video game publisher.
“Through this highly synergistic merger, we will have achieved our goal for GoLogiq to become a comprehensive FinTech platform for underserved businesses and consumers that is generating strong revenue growth and cash flow,” said Suen in the release. “We see huge opportunities ahead as we integrate our respective powerful fintech platforms and set the stage for continued growth and profitability in the new year.”
The companies said in the release their combined forces will help them provide services to younger consumers, who have seen their assets rise from $2.9 trillion to $3.6 trillion.
These consumers have typically been underserved, David Dindi, CEO at global investment firm Atomic, told PYMNTS last summer.
“Most of them have felt that investing is not for them because the traditional investment providers such as large brokerage houses and asset managers haven’t made a significant effort to appeal to them, as they’ve not been viewed as substantial clients,” Dindi said.
On the flip side, FinTechs, neobanks and other consumer-facing businesses have recognized that these younger customers offer a wider potential customer base. However, they arrive on the investment services scene with extremely limited resources.
“Typically, the obstacles that companies face, especially those that have already established a trusting relationship with their customers and are looking to offer investing services, is that investing is a complex, highly regulated activity that requires significant build out,” Dindi added.
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