Digital asset manager Scalable Capital has exceeded the €1bn mark in assets under management just 28 months after entering the market. More than half of the money came from customers of the direct bank ING Diba.
Simon Miller, UK co-founder and UK CEO of Scalable Capital said: “We’ve grown our assets under management faster than any other robo-advisor from US who started a few years before us and which now manage more than $10bn. Our rapid growth shows 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.”
The US Robo Advisor pioneers, such as Betterment or Wealthfront, which were launched in 2008 and each manage more than $10bn today, needed more time to reach the milestone.
The volume is distributed to more than 30,000 customers. This results in an average fixed assets of approximately €32,000 per investor. In comparison, the Munich-based V-Bank – the custodian bank for around 380 asset managers and family offices – has about 24,000 customers or custodian accounts with managed assets of almost €18bn.
Cooperation with ING-Diba pays off
Scalable Capital stated that one of the key growth drivers of its business was the cooperation with ING-Diba, which has been in place since September 2017. Since then, more than 20,000 direct bank customers have invested more than €500m in the Munich Robo-Advisor. The partnerships with Siemens Private Finance and BlackRock, which offer their respective employees individual, technology-based wealth management, have also contributed to the rapid growth in AuM.
More than third of investors are over 55
The average age is at present 50 years, a year ago it was still 42 years. Over a third of investors are older than 55 years. The proportion of female clients who manage funds from Scalable Capital through joint or individual accounts is 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% of the total AuM. Almost half of customers also use a free savings plan, which averages over £350 per month.