Connect with us

Featured

Scalable Capital Now Has Over 500,000 Customers

Scalable Capital and Trade Republic want to occupy the markets before corresponding domestic players, such as Shares in France, become too big. Whether the strategy will work remains to be seen. Traditional online brokers such as Comdirect and DAB, for example, failed in the early noughties in their attempts to establish their offerings outside Germany. Scalable in the UK and Switzerland fared similarly with its robo offering.

Published

on

Investment fintech company Scalable Capital has significantly increased its customer base in the wake of the general trading boom. According to information from Finanz-Szene.de, the robo and brokerage specialist now stands at a good 500,000 customers. Compared with the approximately 130,000 customers at the end of 2020, this corresponds to a tripling within roughly 15 months. CEO Erik Podzuweit did not want to comment on the number of assets under management in an interview with Finanz-Szene. The last update in this regard was from the fall. At that time, Scalable had stated the number of customer funds with “more than $6.6 billion (€6 billion)”, but including the B2B offerings.

If you want to find more details about the investment fintech company Scalable Capital, and to find the most important business news of the day, download for free our companion app Born2Invest.

Roughly two-thirds of Scalable’s customers are now in brokerage

Originally launched as a pure robo advisor, the Munich-based financial startup has increasingly focused on the securities business since the rise of the Berlin-based neobroker Trade Republic. As a result, roughly two-thirds of Scalable’s customers are now in brokerage, and only one-third in the traditional robo business. The change in focus is also reflected in the fact that Scalable Capital launched in France on Monday, March 14th, followed by Spain on Tuesday, March 15th and is also about to launch in Italy – although the Munich-based company is launching in all three markets exclusively as a new broker, i.e. without a separate robo offering.

Trade Republic was also recently launched in the three markets. The calculation of the two Unicorns: While in Germany (for example, FlatexDegiro or Smartbroker) a wide variety of discount brokers are competing, comparable offers are still hardly widespread in Southern Europe. Scalable and Trade Republic want to occupy the markets before corresponding domestic players, such as Shares in France, become too big. Whether the strategy will work remains to be seen. Traditional online brokers such as Comdirect and DAB, for example, failed in the early noughties in their attempts to establish their offerings outside Germany. Scalable in the UK and Switzerland fared similarly with its robo offering.

SEE ALSO  Fez-Meknes: an industrial acceleration zone to boost the economy

For the time being, Scalable Capital is foregoing its own locations in France, Spain, and Italy. Instead, the 30-strong team responsible for expansion is based at the Munich headquarters and the Berlin office. The country manager for Spain is Adrian Amorin Luna, who most recently worked in the same position at e-commerce specialist Idealo for a good four years; a head for France has not yet been found, and one for Italy is to be announced soon.

__

(Featured image by StartupStockPhotos via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in finanz-szene.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Suzanne Mitchell juggles the busy life of a full-time mom and entrepreneur while also being a writer-at-large for several business publications. Her work mostly covers the financial sector, including traditional and alternative investing. She shares reports and analyses on the real estate, fintech and cryptocurrency markets. She also likes to write about the health and biotech industry, in particular its intersection with clean water and cannabis. It is one of her goals to always share things of interest to women who want to make their mark in the world.