Online wealth management startup Scalable Capital is attracting as much as €4 million (£3.4 million) a week in new deposits just 9 months after launch, according to figures released by the startup.
Scalable Capital was founded by former Goldman Sachs and Barclays bankers in 2014 but only launched to the public in January of this year in Germany. It launched in Austria in July and has just opened to the public in the UK.
Despite its tender age, the startup announced at its launch event in London on Wednesday night that it is attracting between €2-4 million in new deposits each week. It did not disclose total assets under management.
The startup already has 16,000 customers, up from 12,000 in August, and 50% of those have set up a “monthly savings plan” that sees them deposit an average of €450 (£386) each month, which helps explain why the cash is stacking up.
Scalable Capital’s typical customer is a 45-year-old who earns €120,000 a year and has a net worth of €250,000 to €1 million, according to a presentation the company gave on Wednesday night.
The company, which is headquartered in Munich but has an office in London, is a so-called “robo advisor,” a fintech startup that helps people automatically manage their money.
At the heart of its model is an investment algorithm that forecasts risks and then automatically optimises people’s portfolios on the fly to limit losses.
Adam French, cofounder and UK MD, told Business Insider earlier this year: “In late 2014 we were collectively all trying to solve the same problem, which was constantly having to answer the same questions from friends and family regarding where they should put their money. We all came together and said, I just don’t have an answer to that question.”
The company counts at least four Goldman employees among its founding team as well as the former VP of Barclays Capital. It has raised £8.8 million in funding and is regulated by both Germany’s BaFin and the Financial Conduct Authority (FCA) in the UK, meaning it is unaffected by Brexit.
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