Scalable Capital significantly reduces minimum investment amount and raises sustainability standards

  • Savings plans without an initial deposit from as little as 20 Euros per month; one-off investments now possible from as little as 1,000 Euros
  • With immediate effect, the SRI criteria, currently the most stringent sustainability criteria available on the market, will apply to the sustainable ETF portfolios in the digital wealth management service

Munich 29 November 2021. Scalable Capital, a fast-growing online broker and Europe’s largest digital wealth manager, is removing the previously required minimum investment amount of 10,000 Euros in its digital wealth management service. From November 30, 2021, every client with a savings plan will be able to invest money in digital wealth management from as little as 20 Euros per month - the initial payment previously required will no longer apply. One-off investments without a savings plan will be possible from as little as 1,000 Euros going forward. Scalable Capital's service for all clients remains the same: low-cost, digital wealth management service, a wide selection of exchange-traded index funds (ETFs) and access to sustainable and risk-managed investment strategies. The changes apply to clients with a custody account at Baader Bank.

"When we first started five years ago with our digital wealth management, we introduced a service for the rich to the middle of society. Now we are going one step further and drastically reducing the minimum investment amount. This allows us to attract even more people for whom traditional financial products were not an option because of high entry levels, high costs or low interest rates," says Erik Podzuweit, Co-Founder and Co-CEO of Scalable Capital. "Investors with large and small budgets save time, costs and nerves with us. Our growth since our founding shows how well our cost-effective and technology-driven offering is being received."

Scalable Capital has been on the market with its digital wealth management service since 2016. The fintech monitors and manages globally diversified portfolios of funds that replicate a stock market index, known as ETFs, for its clients, tailored to their personal attitude towards risk. The key parameter for portfolio management is the equity allocation (in case of sustainable investment strategies) or the individual risk appetite of investors (in case of investment strategies with dynamic risk management). The offer is well received: Including the neo broker, Scalable Capital now has more than 6 billion Euros on its platform.

Setting even higher standards for sustainable ETF portfolios

In addition, Scalable Capital is adjusting its sustainable investment strategies in the digital wealth management service. Regarding the compilation of sustainable ETF portfolios in wealth management, the company is switching to SRI products for the asset class shares. SRI stands for "Socially Responsible Investing". For products with this label, the selection of shares is based on even stricter sustainability criteria than with a classic ESG approach. By converting its portfolio, the company is implementing the strictest sustainability criteria in the market.

"Three quarters of our new clients rely on one of our sustainable strategies for wealth management," says Franziska Grotz, VP Wealth & Sustainability Officer at Scalable Capital. "This shows: Sustainable investments are more than a trend – they are part of the core investment of many private investors."

The world's largest index provider MSCI offers various sustainability standards. Among these, the so-called SRI products have the strictest inclusion and exclusion criteria by far. They represent the shares of companies that excel in sustainability. SRI products are selected in a multi-step process. First, MSCI excludes securities of companies involved in areas such as nuclear power, weapons, or fossil fuel extraction. Additionally, companies that do not meet MSCI's minimum requirements in terms of environmental and social criteria or sustainable corporate governance are excluded. The remaining securities are screened using the index provider’s Best-in-Class selection process. Here, MSCI only considers companies with the highest ESG ratings. Only a quarter of the original companies of the MSCI parent index meet these strict criteria. MSCI ensures sufficient diversification in the SRI index via a specific sector and regional weighting. Like all other ETFs, the new SRI ETFs are subject to continuous review by Scalable Capital's capital markets experts, including performance.

About Scalable Capital

Scalable Capital is a leading FinTech in Europe, bringing together people and technology-based investment. For private individuals, Scalable Capital offers digital wealth management, a broker with a trading flat rate, as well as overnight and time deposit offers. In digital wealth management, the company creates and manages globally diversified ETF portfolios for its clients with, if desired, sustainable investment strategies. The broker enables private individuals to trade shares, ETFs, Crypto ETPs, funds and derivatives themselves and to set up ETF savings plans. For short and medium-term investments without capital market risk, the company also offers access to attractive overnight and fixed-term deposit offers.

For B2B partners, Scalable Capital develops solutions for digital investment. Partners include the direct bank ING, the British Barclays Bank, Siemens Private Finance, the digital subsidiary of the Santander Group Openbank, Oskar GmbH, and Targobank.

The company was founded in 2014 by Erik Podzuweit, Florian Prucker, Adam French (each of whom worked for Goldman Sachs) and Professor Dr. Stefan Mittnik (Professor of Financial Econometrics (ret.) at the Ludwig-Maximilians-University of Munich). It now employs more than 330 people at its offices in Munich, Berlin and London and has more than €6 billion on its platform. Scalable Capital’s shareholders include, among others, BlackRock, Tencent, HV Capital and Tengelmann Ventures. Scalable Capital GmbH is an investment firm regulated by BaFin in accordance with § 15 of the German Securities Institutions Act (Wertpapierinstitutsgesetz - WpIG).

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