Digital investment manager, Scalable Capital, has topped more than €100 million (£83.8 million) in assets less than a year after its launch.
Founded in 2014, the service rolled live in Germany just ten months ago and as recently as August in the UK (Scalable Capital off and Running – Muckle 4th August).
Announcing its feat in a press release on 14th December, cofounder and CEO of Scalable Capital in the UK, Adam French said: ‘Reaching this milestone so quickly underlines the trust our clients put into us. Our growth story is just getting started, and we look forward to more success in 2017 as we build on strong momentum in the UK and our market-leading offering in Germany.’
Scalable is growing its assets at a rate of between €3 million (£2.4 million) and €5 million (£4.1 million) each week making it one of the fastest growing digital investment managers in Europe.
Our growth story is just getting started
Scalable Capital promotes itself as a sophisticated automated discretionary wealth management solution, which would at least in part explain its rapid growth amongst experienced, wealthier investors.
Very much in line with the experience of the early online brokers a dozen or so years ago, Scalable’s typical customer is aged 42, earns a salary in excess of €120,000 (£100,000), and has a net worth between €250,000 (£209,600) and €1 million (£840,000).
Now with 2,500 clients, bankers are the largest professional group represented, accounting for 20% of Scalable’s customers; the average value of each account is €42,000 (£35,000) and more than half of the accounts have a monthly savings plan established, contributing an average of €500 (mony a €500 maks a €100 million?…….Muckler)
Former Goldman Sachs banker Mr French believes that this stout performance shows that within just four to five months its UK clients have gained sufficient trust in Scalable Capital to double the amount they invest.
Scalable Capital’s model is based upon an algorithm that forecasts future risks based upon recent market experience; the client is served up a portfolio of ETFs in accord with their attitude to risk and financial objectives, and this is constantly and automatically optimised to ensure that it remains faithful to the original as market conditions and circumstances change.
the average value of each account is €42,000
Also quoted in today’s statement, Dr. Ella Rabener, CMO and cofounder of Scalable Capital UK, says: ‘The majority of our clients work with data, formulas or software on a daily basis. They understand the quality and cost benefits of a technology-driven investment approach.’
Scalable Capital is regulated by both Germany’s BaFin and the Financial Conduct Authority (FCA) in the UK meaning that it should able to remain stoic as the rest of us get to grips with what a post-Brexit Britain will look like.
For a comprehensive look at Scalable Capital’s business proposition, visit its dedicated page Scalable Capital: Intelligent Investing and if you have firsthand experience of Scalable Capital and have anything you would like to share – good, bad or indifferent – Muckler would be glad to receive your thoughts as we strive to build the most comprehensive picture of digital wealth management in the UK – Muck In.