Having achieved €100m assets under management as recently as January this year (more), robo advisor Scalable Capital recently announced a doubling of this figure to €200m AUM, making it one of the fastest-growing fintech companies in Europe.
In announcing its milestone, founder and CEO of robo advisor Scalable Capital, Adam French said: ‘our assets are growing by more than one million euros per day. Our service has really struck a chord with frustrated retail investors who know that they should be making their money work harder but the lack the time or expertise to manage their investments on their own, or who are frustrated with the high costs of traditional solutions. We are addressing this gap with our cost-efficient, technology-driven and intelligent wealth management proposition.’
Investments of €40,000 per client
Following its soft launch in June, Scalable Capital went live in the UK in August 2016 (more).
In January 2017, the company, which originally launched in Germany and is also present in Austria as well as the UK, began a collaboration with Siemens Private Finance which selected Scalable Capital as its partner to offer a wealth management solution to Siemens employees in Germany.
The company currently manages approximately 5,000 bespoke ETF portfolios for clients with an average value of €40,000.
The relatively sophisticated nature of its proposition is reflected in the fact that Scalable Capital’s clients are on average 46 years old and well educated; more than 90% hold an academic degree.
Around two thirds of its clients have a background in economics, technology or engineering, with bankers representing the biggest customer group at 20% of all clients; it is safe to assume that they possess a better than average grasp of investing and are more likely to be comfortable with Scalable Capital’s risk managed approach and concept of Value at Risk.
using technology to make online investing ‘better, not just cheaper
The company was recently selected as the only European start-up on CNBC’s exclusive ‘Upstart 25’ list, created to reflect the technology-driven start-ups it believes have the potential to become household brands of tomorrow.
Citywire has identified robo-adviser Scalable Capital as one of the top 10 wealth management firms to watch in 2017 and Mr French has been identified by PAM as one of the Top 40 Under 40; the PAM programme is a guide to the rising stars in the private banking and private asset management sectors.
Scalable Capital has technology at the heart of its service, combining a data-driven investment process, low fees and high levels of customer service with three key objectives, to deliver:
- A better understanding of risk – by using its technology to drop vague risk labels like ‘balanced’ or ‘conservative’ in favour of providing clients with a percentage which quantifies the potential downside in a bad year.
- Better risk-adjusted returns – by generating better return for every unit of risk taken, focused on downside risk. Investors don’t get rewarded for exposure to excess risk, rather Scalable’s dynamic risk management smoothes returns during periods of extreme market volatility.
- Less emotional stress – by keeping risk stable in all market conditions, Scalable Capital helps clients stay invested in capital markets for longer so they can grow their wealth in the long term.
Scalable Capital was created by experts spanning finance, technology and academia and aims to deliver a service that makes investment management cheaper, more accessible and more convenient; using technology to make online investing ‘better, not just cheaper’.