Scalable Capital Raises $33 Million in BlackRock-Led Series B

In a round led by BlackRock, robo advisor Scalable Capital has raised $33 million (€30 million) in new capital. Also participating in the Series B were existing investors HV Holtzbrinck Ventures and Tengelmann Ventures. The company, with offices in London, U.K., and Munich, Germany, now has total funding of more than $45 million (€41 million). The investment gives BlackRock a minority stake in Scalable Capital; BlackRock’s Chief Operating Officer of EMEA, Patrick Olson, will join Scalable Capital’s Supervisory Board.

Adam French, Scalable Capital co-founder and CEO U.K., said the investment served as a “fantastic validation of our work so far” and would “open up new growth avenues” for the company.  French added that bringing technology to bear in the wealth management business was “not just a competitive advantage, but a requirement for wealth management businesses to be successful in the future.” BlackRock’s Olson put the investment in the context of growing demand from European wealth managers and advisors for “high-quality technology-enabled investment solutions.” The firm’s investment in Scalable Capital, Olson said, “allows us to meet these evolving needs of our clients and their customers and to help shape their business models for the future.”

Pictured (left to right): Co-founders Erik Podzuweit (Co-CEO) and Adam French (U.K. CEO) demonstrating Scalable Capital at FinovateEurope 2016.

With more than €250 million in assets and more than 6,000 retail clients, Scalable Capital is a digital investment manager that invests client funds in globally diversified exchange-traded fund (ETF) portfolios. Calling itself “a service so cost-efficient, honest, and transparent that even a banker could use it, Scalable Capital differentiates itself from its rivals in the robo advisory space by its commitment to superior risk management. “We’ve developed a risk management technology which was previously reserved for institutional investors,” French announced at the beginning of his company’s FinovateEurope demo, adding “And we’re really excited to take this technology, and put it in the hands of retail investors.”

During their live demo, French and co-founder Erik Podzuweit showed how investors could determine their precise risk tolerance level and see how their willingness to take (or reduce) risk would likely affect future returns. Scalable Capital also avoids the vague marketing jargon that describes portfolios as “conservative” or “moderate” or “dynamic.” Podzuweit explained, “At the end of the day, that doesn’t tell you anything. What is a ‘moderate’ portfolio? Can I now lose half my portfolio more or less? And will this ‘moderate’ portfolio always stay moderate in all market conditions?” Instead, Scalable Capital quantifies the risk and gives it an institutional risk measure, value at risk. This measure gives investors a sense of maximum potential losses over a one-year horizon within a 95% likelihood.

“Why do we stress this risk point so much?” Podzuweit asked. Answering his own question, he continued: “Because risk, apart from costs, is the most important factor in investing. Risk is the currency you buy long-term performance with. And our clients should decide themselves how much of their currency they want to put on the table.”

Featured last month in Money Marketing, Scalable Capital was named to FinTechCity’s FinTech 50 this year, as well as being recognized for Financial Innovation of the Year from the Online Personal Wealth Awards. The company announced a doubling of assets in the first three months of the year to €200 million, the same month French earned a spot on the 2017 PAM Top 40 Under 40 roster. Founded in 2014, Scalable Capital demonstrated its risk management technology at FinovateEurope 2016.

Finovate Alumni News

On Finovate.com

  • Scalable Capital Raises $33 Million in BlackRock-Led Series B.

Around the web

  • TSYS reups payments partnership with Tesco Bank.
  • Payoneer expands to the U.K., opening new office in London.
  • Zopa launches IFISA for tax free interest on up to £20,000 of their P2P investments.
  • ACI Worldwide to power Pan-European faster online payments.
  • PYMNTS talks with WePay Co-Founder Rich Aberman.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Sandstone Technology Inks Digital Banking Deal with SBS Bank.
  • Financeit Receives New Funding Capacity of $85 Million.

On FinDEVr.com

Around the web

  • Misys adds Synechron to its InFusion Partner Program.
  • Fiserv leverages robo-advisory and automation technology from fellow Finovate alum Trizic to enhance its wealth management solutions.
  • Bento Chief Operations Officer Sean Anderson discusses the future of regtech and the problem of one-size-fits-all compliance programs.
  • The 2017 NSS Labs gives Check Point Software Technologies a ‘Recommended’ rating.
  • Money Marketing features Scalable Capital.
  • City of Memphis to leverage Tuition.io to offer student loan debt reduction program for employees.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

European Alums Shine in FinTechCity’s FinTech50 2017

Less than a week before FinDEVr London 2017, we’ve learned that fifteen of the companies selected by FinTechCity for this year’s FinTech50, a list of top European fintechs, are alums of Finovate and FinDEVr conferences. This is up from last year, when 13 alums who made the list. last year’s list. Six of the companies on the 2017 roster are making repeat appearances: BehavioSec, Fenergo, Kantox, Mambu, Meniga, and Revolut.

Eight of the alums in the FinTech50 are headquartered in the U.K., three hail from Germany, two from Switzerland and one each from Ireland and Sweden. The judges for the FinTech50 are a panel consisting of 60 financial services professionals from banking, payments, venture capital, and public policy-making, among other relevant fields.

2017 marks the fifth year that FinTechCity has produced its roster of the most innovative fintech companies headquartered in the U.K. and Europe. The list is designed to focus on the technology innovations each company has developed rather than the amount of money the companies have made from their technologies.  In a statement at the FinTechCity website, the organization explains the sole criteria for inclusion in the FinTech50 as “the potential to become a game-changer or the competitive staying power to continue being one.”

Here are our winning alums for 2017.

Check out the full 2017 roster. FinTechCity also honored ten fintech startups in an honorable mention category, Hot Ten 2017. Ten companies have also been recognized as the founding members of the FinTech50 Hall of Fame, including Finovate/FinDEVr alums Currencycloud, eToro, Klarna, Nutmeg, TransferWise, and Zopa. Founded by Julie Lake (CEO) and Nicky Cotter, FinTechCity will also unveil the inaugural FinTech50 Asia later this year.

Finovate Alumni News

On Finovate.com

  • KeyBank Acquires HelloWallet from Morningstar.
  • Zopa Receives $41 Million Investment to Support Challenger Bank Launch.

Around the web

  • Scalable Capital wins Financial Innovation of the Year from the Online Personal Wealth Awards.
  • MaxMyInterest introduces 1.31% preferred rate courtesy of new partnership with UFB Direct.
  • SumUp announces availability in more than 1,500 retail locations throughout Europe.
  • Tuition.io Awarded ISO 27001 Certification.
  • Econiq models conversation behaviors of top-performing employees to enrich the omnichannel customer experience for banks and insurers.
  • OANDA teams up with QuantConnect to launch new algo trading portal.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Mastercard Adds to Authentication Arsenal with Acquisition of NuData Security.

Around the web

  • Scalable Capital doubles assets in three months.
  • Pindrop’s Security and Authentication Technology Will Be Available With Amazon Connect.
  • HSBC announces fintech partnership with Tradeshift.
  • Xero named a “2017 Top Rated Accounting & Budgeting Software” on TrustRadius.
  • nCino to power commercial lending for Valley National Bank.
  • Iroquois Federal Savings & Loan Association to deploy core processing system from Fiserv.
  • Trustly unveils new solution for recurring payments, Trustly Direct Debit.
  • Braspag announces integration of e-commerce and anti-fraud technology from ACI Worldwide.
  • Mid-office operations automation from Five Degrees, Matrix, goes live at GarantiBank International.
  • New York-based CFCU Community Credit Union taps Insuritas to install full services insurance agency solution.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On FinDEVr.com

Around the web

  • PaySimple unveils new Service Point of Sale (sPOS) platform.
  • NY State Department of Financial Services to allow Coinbase to offer Ethereum and Litecoin to customers in New York.
  • Backbase to locate new R&D center in Cardiff, Wales.
  • Revolut announces £4 million crowdfunding investment round and launch of subscription service.
  • Scalable Capital founder and CEO Adam French earns spot on 2017 PAM Top 40 Under 40 roster.
  • Innovate Finance names Nous Global Markets, Moxtra, and Qumram as finalists in its Pitch360 fintech startup competition.
  • WePay customers can now use Apple Pay on the Web and Google’s Android Pay on the Web for increased revenue generation.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Lendio Brings the Franchising Model to Small Business Lending.
  • Excited to see Symphony Software Foundation at FinDEVr NY March 21 & 22. Check out our interview with Executive Director, Gabriele Columbro.
  • Scotiabank and AlphaPoint Wrap Up Blockchain Trial.

On FinDEVr.com

  • RSVP for FinDEVr’s International Debut.
  • PwC Brings Blockchain PoC to London’s Specialty Insurers.
  • Shwayhat Steps Up: Greenkey Technologies Announces New CEO.

Around the web

  • Vantiv to provide payment processing for Tyndall FCU ($1.3 billion in assets). See Vantiv at FinDEVr New York this month.
  • Scalable Capital recognized as only European startup on CNBC Upstart 25 roster.
  • Wealthify lowers minimum investment to £1.
  • Mambu goes live in the Americas with new offices in Miami and new regional managing director.
  • Trustly processes more than €3 billion in payments in 2016, announces UK expansion.
  • Fiserv Expands Contact and Servicing Center into Florida.
  • Yandex Money brings bankers onboard.
  • D+H Mortgagebot named HW Tech100 winner.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Top Direct-to-Consumer Wealthtech Plays

wealthtech4

Our wealthtech industry coverage continues this week. We looked at the industry last week and reviewed the top trends earlier this month. Today we’re taking a look at industry players with B2C offerings—in other words, companies that market directly to consumers and not through businesses.

Since wealthtech is broader than just roboadvisers, we’ve divided B2C wealthtech players into seven categories and laid out our top picks for each group. Since category sizes vary, the number of our selections also vary.

Top in-house builds from traditional players
These are offerings from traditional wealth management firms that have been built in-house (or purchased and then white-labeled) and marketed under the firm’s brand.

Fully automated roboadvisers
These are online platforms that provide automated, algorithm-based portfolio management without intervention from human advisers and without personalized, one-on-one conversations with a human adviser.

screen-shot-2016-12-22-at-4-06-40-pmAcorns takes a unique approach by linking a user’s debit card and investing their “spare change”

Hybrid roboadvisers
These are traditional advisory services, including personalized conversations and actively managed portfolios blended with computerized portfolio recommendations. Business Insider reports hybrid roboadvisers will manage 10% of all investable assets by 2025.

screen-shot-2016-12-22-at-4-11-08-pmSigFig has partnered with multiple banks, including Wells Fargo, Pershing, and Citizens Bank

Non-U.S. roboadvisers

Alternative investing platforms
These are platforms that link participants to unconventional investment types, such as private equity, hedge funds, futures, real estate, etc.

screen-shot-2016-12-22-at-4-18-08-pmWith Motif, uses invest in grouped stocks and ETFs that revolve around a common theme

Non-U.S. alternative investing platforms

News and information companies
These are online platforms that help users discover news and market trends before they go mainstream. Some include social networking aspects.

screen-shot-2016-12-22-at-4-23-47-pmTickerTags helps users discover trends even before they become news

Finovate Alumni News

On Finovate.com

  • “Roots Rock: eMoney Advisor Reports Breakout Revenue Metrics for 2016″
  • Check out this week’s “FinDEVr APIntelligence”
  • Nubank Raises $80 Million in Series D Funding”
  • “Finovate Debuts: Agreement Express Helps Advisers Offer Non-Intrusive Onboarding”

Around the web

  • Nostrum CFO Neil Warman re-elected to Confederation of British Industry (CBI) regional board.
  • Qumram wins 2016 Private Banking International (PBI) award for Outstanding Front-End Digital Solutions Provider.
  • Ovum recognizes Backbase as digital banking platform market leader.
  • Comarch partners with TrustWeaver to make e-invoicing cross-border compliant.
  • True Potential listed in the Deloitte Technology Fast 500 EMEA for the fourth consecutive year.
  • Fundable profiles DAVO’s funding since its 2011 launch and its milestone of 800 clients.
  • Orca Money interviews Scalable Capital CEO Adam French.
  • Luxoft wins Best Enterprise Systems Integrator in Constellation Research’s 2016 Enterprise Awards.
  • Zopa takes home two awards at the AltFi Awards and wins Best P2P Lending Platform at the F5 Awards.
  • InComm partners with MOL Global to launch PlayStation Network prepaid products to be distributed through 7-Eleven stores in Indonesia.

This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.