Robo-adviser Scalable Capital has doubled its assets under management (AUM) in the past three months, now managing €200m (£172m) on behalf of its clients.
The company, which first launched in the UK in July last year, currently manages approximately 5,000 bespoke ETF portfolios for clients with an average value of €40,000 each.
The service charges a 0.75% flat fee, which includes investment management, account management, custodial charges and all trading costs, plus an average of 0.25% for the ETFs used.
Founder and CEO Adam French said: "Our assets are growing by more than €1m 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 lack the time or expertise to manage their investments on their own, or who are frustrated with the high costs of traditional solutions."
Scalable's service rests on proprietary technology that allocates investors exchange traded fund (ETF) portfolios based on their risk appetite.
It then weighs the asset classes in portfolios on an ongoing basis, adjusting allocations to changing market conditions. It measures risk using forward-looking projections, based on recent market developments.
Scalable Capital co-founder Ella Rabener put Scalable's success down to understanding its target audience - people with an understanding of finance but a lack of time to invest alone.
This meant the firm did not have to convince them to invest but simply needed to persuade them that Scalable was the best service for them, she said.
Rabener also felt the robo-adviser was more technologically advanced than its competitors, having moved away from the more traditional approach of having an investment team with a personal view on the market, to focusing on data and algorithms instead.
"We really innovate around the investment process; we don't just innovate around accessibility or lowering the cost. For us, it's all about the service we're selling," she said.
Deals in the pipeline
The adviser, which operates across Germany and the UK, has already partnered with German brand Siemens Private Finance, offering employees wealth management solutions. It has further B2B deals in the pipeline, though it couldn't give more information just yet.
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