Pioneering and loss-making robo-advice company Nutmeg is set to be acquired by JP Morgan Chase.

The acquisition of Nutmeg will complement the launch of its digital bank under its 'Chase' brand later on in 2021, the firm said.

Nutmeg provides a digital advice service to 140,000 customers who hold £3.5bn invested assets with the firm.

Nutmeg has lost a lot of money in its bid to gain scale in the robo-advice market after being the UK pioneer. In its 2017 financial year, Nutmeg lost £12.15m and then went on to lose a further £15.5m and £19m in the two subsequent years.

The firm made a number of sizeable fundraises to entertain its quest to gain customers and assets under management. By the winter of 2019, it had raised a total of £115m from a variety of sources, including Goldman Sachs and Hong Kong-based Convoy. 

JP Morgan said it would "blend the reassurance of an established and trusted bank with a seamless customer experience". The bank said it would offer a number of products and launch a "new take on current accounts", which is currently in a testing and pilot phase before public release.

JP Morgan Chase CEO of international consumer Sanoke Viswanathan said: "We are building Chase in the UK from scratch using the very latest technology and putting the customer's experience at the heart of our offering, principles that Nutmeg shares with us.

"We look forward to positioning their award-winning products alongside our own, and continuing to support their innovative work in retail wealth management."

Nutmeg CEO Neil Alexander added: "Nutmeg's customers can expect the same level of transparency, convenience and service that helped make us a leading digital wealth manager in the UK I am truly impressed with the digital experience that Chase is building for the UK.

"This new chapter in our story will see Nutmeg's customers benefit from a wider range of products and services in the future and allow us to expand into new markets."