Munich/London, 27. September 2018. Scalable Capital continues to see strong traction in the B2B sector. Scalable Capital together with BlackRock have developed a white label solution for Openbank, the digital bank of the Santander Group, Europe’s second largest bank in terms of customer numbers. The new service named “Invertimos por ti” (“We invest for you”) has been integrated seamlessly into Openbank’s online banking platform and is available to their clients in Spain as of today.
“We are not only striving to be the leading digital wealth manager for private investors in Europe, but also to establish ourselves as the European B2B platform of choice for digital wealth management solutions. We are very pleased that Openbank is now using this platform to offer customers digital investment management starting at 500 euros”, says Adam French, Co-Founder of Scalable Capital.
Scalable Capital provides technology, BlackRock the strategic asset allocation
While Scalable Capital has built the technological infrastructure for the robo advisor, BlackRock delivers the strategic asset allocation for the Openbank portfolios. Openbank clients can choose from five different risk categories, which hold different asset allocations. In the Openbank investment solution, the underlying investments will be index funds rather than ETFs. This is due to a preferable tax treatment of index funds in Spain, where no capital gains taxes will be due after portfolio allocation changes among index funds.
“We are delighted with the trust placed in us by Openbank. Working closely with BlackRock we’ve delivered a customer-friendly solution that showcases the modularity of our technical infrastructure and demonstrates the breadth of potential B2B implementations. This model is therefore representative of other cooperations that we’re currently working on. Our joint focus with Openbank is now on getting as many customers as possible excited about this digital wealth management service”, says Florian Prucker, Co-Founder of Scalable Capital.
In response to the younger investor profile of Openbank customers, the minimum investment amount is 500 Euros. A “fractional dealing” service has been put in place to facilitate the trading of fractions of index funds and ensure sufficient diversification of smaller portfolios is still possible. Savings plans can be set up free of charge. In addition, the service will be offered free of charge to Openbank customers until the end of 2018, after which the costs, tiered according to investment volume, will always be less than one percent. Scalable Capital also developed “goal-based investing” functionality, which enables customers to set up their investment plan towards a specific goal.
Fully automated end-to-end automatisation through Scalable Capital
Scalable Capital has been chosen as Openbank’s partner due to the technological expertise that the fintech brings to the table, which allows end-to-end processes to be fully automated. All frontend, backend and back-office processes can be managed via simple APIs. The service is fully integrated into the online banking platform of Openbank, meaning that customers do not have to complete the authentication process again (single sign-on).
Openbank is a subsidiary of the Santander Group. Openbank was founded in 1995 as a telephone banking service and is, since its re-launch last year, Spain’s first digital-only bank. All services - ranging from credit card payments to loan applications - can be completed via their app.
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