3 WealthTech companies transforming the European financial market

By Megha Bhattacharya

WealthTech is any technology used in wealth management as well as the financial technology (FinTech) companies that developed around them with an aim to provide innovative digital solutions for the investment and asset management industries.

Digital business models have emerged within the wealth management industry, in the last decade. These companies leverage digital platforms and technology to help investors connect with their peers and the right advisors, in addition to providing tailored advice, and offer investment opportunities and strategies similar to those used by professional investors and institutions.

Check out these 3 WealthTech companies in the European market –

• InvestSuite

Belgian B2B WealthTech startup, InvestSuite, aims to help financial institutions accelerate their digital wealth transformation via its AI-based digital investment solutions. The startup was founded in 2018 in Leuven by an experienced team of bankers, computer scientists and product designers.

Recently, digital consulting firm Synechron has announced a strategic partnership with InvestSuite in a bid to help banks, brokers, wealth managers, and other financial institutions to serve their clients with modern digital investment solutions. Synechron will help deploy InvestSuite’s digital wealthtech products. Avaloq also entered into a partnership with FinTech InvestSuite in a bid to bring automated investment storytelling to its open banking marketplace, Avaloq.one Ecosystem.

Based on the iVaR-based portfolio construction framework, InvestSuite offers an end-to-end, customizable robo advisor, which provides an automated digital investment product that financial institutions can offer to their clients.

• additiv

Founded in 1998 and headquartered in Zurich, additiv enables financial institutions to capitalise on digitalisation. Its DFS solution lets FIs launch new propositions quickly and allows them to maximise customer engagement.

additiv, recently, announced a partnership with data science tech platform Clarity AI in a bid to provide wealth managers sustainability insights to build smarter portfolios, provide client support and comply easily with regulation. The collaboration will see additiv clients include Clarity AI‘s sustainability insights into their investment decisions. Through the use of big data and machine learning, Clarity AI aims to assess the sustainability and impact of a portfolio’s investments.

Swiss FinTech Sparbatze also announced the launch of its fully digital pension services in collaboration with three industry partners, including Zuger Kantonalbank, additiv, and Qcentris. Zuger Kantonalbank will assume the responsibility of the custodian and will strengthen the digital proposition with the provision of fund accounts for an external asset manager.

• Scalable Capital

Founded in 2014, Scalable Capital is a Germany-based digital wealth manager. The company recently raised an additional €50 million in a Series D financing round, taking the total amount raised to €116 million.

Scalable Capital aims to simplify wealth management and make investments cheaper through technology. The company allows customers to invest their money through the robo advisor and trade actively with the broker. It offers a trading flat rate, where retail investors can trade shares, funds, and ETFs or make savings plans on ETFs for €2.99 per month with no additional fees. It also provides access to overnight and fixed-term deposit offers.

The company also announced a partnership with Raisin in a bid to offer a new service, wherein the WealthTech’s customers with a portfolio account at Baader Bank will be able to invest in fixed-term deposits with selected European banks. According to the supplier, the new service can be accessed via Scalable Capital’s website and apps and is expected to assist its existing wealth management service with Raisin’s partner banks.

READ MORE: Wealth Management and Private Banking Systems Report 2020 by IBS Intelligence