AltFi.com uses cookies on this website. They help us to know a little bit about how you use our website, which improves the browsing experience and marketing - both for you and for others. They are stored locally on your device. By continuing to use this site you accept this use of cookies. Go to the Privacy and Cookies page for more information. You'll see this message only once.
Not signed in. Log in here.

Your daily download of all things alternative finance and fintech, from us at AltFi


 

Not just for millennials: Partnerships and over 50s lift Scalable Capital to €500m in assets




By Daniel Lanyon on 9th November 2017


Assets under management have grown fivefold in 10 months, boosted €150m through its ING-DiBa partnership in Germany.

 

 

Digital wealth manager Scalable Capital has seen its assets under management (AUM) soar to €500m (£443m), representing the portfolios of 15,000 clients.

 

Scalable Capital launched its investment management services less than two years ago - 22 months - in Germany and 16 months in the UK.

 

"In the past ten months, we have been able to grow our assets under management fivefold to over half a billion euros. This shows that private investors value the benefits of a technology-driven investment model, cost-effective ETFs and digital usability, " said Adam French, Founder and CEO of Scalable Capital.

 

Its partnership with ING-DiBa, Germany's third-largest bank, has particularly accelerated growth. In the first two months of the partnership, almost 7,000 ING-DiBa customers have moved more than €150m to Scalable's portfolios.

 

While ING-DiBa is in charge of custody, Scalable Capital manages client investments with its proprietary risk management technology. It is the first fully integrated partnership between a major German bank and a digital wealth manager. The firm is already planning similar deals in other European markets.

 

The average age of Scalable Capital’s clients has also increased. Currently it stands at 50 years whereas a year ago it was just 42 years. Over a third of investors are over 55.

 

The firm has also seen a growing share of female investors, which rose to more than 20 per cent within the past 12 months. Over 90 per cent of clients have a university degree. Their most common professions are bankers, economists, computer scientists and engineers.

 

On average, clients have currently invested £28,000 with Scalable Capital, with new clients significantly increasing their initial investment within the first six months. Nearly half of the clients also use a free savings plan, which is on average at £350 per month. The company also manages many large portfolios. Portfolios with more than £100,000 represent almost a third of assets under management.

 

The world's largest investment manager BlackRock took a significant minority equity stake in Scalable Capital in June 2017.

Comments


Enter your name:

Enter a comment in the box below: