London/Munich, 29 May 2018. Just 28 months after entering the market, Scalable Capital now manages more than one billion euros. This makes Scalable Capital the clear market leader in Germany and one of the leading firms in Europe.
"This is a significant milestone for our company and we are all the more delighted that we managed to reach it so quickly," says Simon Miller, UK co-founder and UK CEO of Scalable Capital. "We’ve grown our assets under management faster than the robo-advice pioneers from the US who started a few years before us and which now manage more than ten billion US dollars. Our rapid growth shows, above all, that there is a real demand for digital wealth management. But we are still at the very beginning: millions of savers all over Europe are looking for a technology-based and cost-effective form of having their investments managed for them".
Unique Growth Dynamics
Scalable Capital was founded in 2014 with the aim of democratising asset management. To achieve this, the company combines three building blocks that are central to successfully build wealth for its clients: Cost-efficient ETFs, professional risk management technology and a convenient digital service.
Since Scalable Capital’s launch, its growth momentum has been unique in the industry: in the first eleven months, the German-British Fintech accumulated 100 million euros. In the eleven months that followed, client assets under management increased fivefold to 500 million euros. And just six months later, Scalable Capital now manages more than a billion euros. This is distributed among over 30,000 customers, resulting in an average investment amount of approximately £28,000.
"The market for digital wealth management is currently growing faster than the ETF market did in its early days. We are therefore convinced that the majority of investors will use digital investment solutions in a few years' time. The use of leading technology and the cost advantages are compelling reasons to use digital wealth managers rather than invest in actively managed funds. When you add to that how few people feel confident managing a capital market portfolio themselves, a service like ours is the obvious solution for most private investors," says Adam French, co-founder and Director of Scalable Capital.
Partnerships have been integral to the success of the company
One of Scalable Capital's most important growth drivers is the cooperation with ING-DiBa, Germany's third-largest bank in terms of customer numbers, which began in September 2017. Since then, more than 20,000 ING-DiBa customers have invested over £440 million with Scalable Capital. The partnerships with Siemens Private Finance and BlackRock, which offer the respective employees individual, technology-based wealth management, have also contributed to the rapid growth in AuM.
Over one third of investors are over 55
The age of clients has increased since the firm’s launch. The average age of a Scalable Capital client is currently 50, eight years older than it was a year ago. More than a third of investors are over 55 years old. The proportion of female clients who have funds managed by Scalable Capital via joint or individual accounts now stands at 37 percent.
New customers typically increase their initial investment significantly within the first six months. The company also manages many large portfolios - portfolios with a volume of over £100,000 account for close to 40 percent of the total assets under management. Almost half of customers also use a free savings plan, which averages over £350 per month.
About Scalable Capital:
Scalable Capital was founded in 2014 and is active in the United Kingdom, Germany, Switzerland and Austria. With assets under management of over €1 billion and more than 30,000 clients, Scalable Capital is one of the leading digital investment managers in Europe. The UK founders team consists of Adam French, Simon Miller and Dr Ella Rabener. Its unique risk management technology was developed in close collaboration with Professor Stefan Mittnik, PhD, Director of the Chair of Financial Econometrics and Director of the Center for Quantitative Risk Analysis at the Ludwig Maximilian University in Munich.
Since its launch in Germany in February 2016 and in the UK in July 2016, it has established a leading proposition with strong demand not just from private investors, but also from financial institutions and corporates. Through its successful partnership with Germany’s third-largest retail bank, ING-DiBa, it attracts hundreds of new clients each week. Scalable Capital also partnered with BlackRock in the UK and Siemens Private Finance in Germany to promote its wealth management service to the companies’ respective employees.
Scalable Capital currently employs a team of almost 80, many of them experts in financial econometrics and machine learning as well as software engineering. Scalable Capital creates and manages globally diversified ETF portfolios for its clients to help them achieve their long-term financial goals, supported by a proprietary risk management technology. It aims to make investment management cheaper, better and more accessible.
Scalable Capital Limited is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, while Scalable Capital Vermögensverwaltung GmbH is regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany.