A joint venture between Lloyds and Schroders is ditching the Lloyds name in a bid to attract affluent clients in a bid to become one of the top three financial planning businesses in the UK.

The new venture will be called Schroders personal wealth, Lloyds disclosed this morning in its full-year results. Details of the new venture in which both companies will hold a near equal stake emerged last year.

The decision to drop the Lloyds name is a sign the venture will aim to attract an affluent client base by using a brand more associated with investment and private wealth. People will need at least £100,000 in investable assets to use Schroders personal wealth services.

People close to the decision on branding had previously suggested that the Schroders name would dominate, as it was more likely to appeal to both affluent customers and wealth advisers.

The venture marks the first time Schroders has moved into the mass affluent UK financial planning market. Its Cazenove brand provides advice to high-net worth customers.

The companies said when the partnership was first announced that they would also consider “other strategic opportunities”, including potentially a more mass-market service offering Schroders’ asset management to Lloyds’ retail banking customers.

James Rainbow, chief executive designate of Schroders personal wealth, said: “The UK wealth management market is growing, and pension freedoms mean that the responsibility is shifting to the individual. This means more people than ever need help as they plan for their futures. We can play a role in helping address the need for financial planning with a clear and transparent service.

“The backing of the country’s largest banking group and the number one investment company gives us access to resources and expertise that will help us serve our customers better and make their money work harder for them.”

Schroders personal wealth will enter the market in the second half of 2019, subject to regulatory approval, and will cannibalise the existing Lloyds Bank Private Banking and Bank of Scotland Private Banking brands.

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