BlackRock-backed Scalable Capital closes UK consumer platform
Scalable Capital, a European robo-adviser, is set to shutter its UK service in order to focus on growing the business in Germany.
Clients based in the UK were told on 27 January that their accounts would be closed by 28 February if they had not already transferred their assets off the platform by that time.
Simon Miller, chief executive of the UK business, tells The Block that the decision was part of a move to consolidate the pan-European firm’s services under the German entity.
“We’re crossing €3 billion now across the platform, and a lot of that’s on the German platform,” he says. “Operating multiple direct-to-consumer platforms is basically becoming quite inefficient.”
Miller declined to say how many UK customers had been affected by the decision.
Scalable is one of the largest robo-advisers in Europe valued at $460 million.
It offer wealth management tools online and at relatively low cost.
Many of these companies have pivoted their business models in recent years to focus on business-to-business (B2B) client relationships, whereby they licence their technology to established financial institutions rather than catering directly to customers.
Scalable partnered with UK lender Barclays to launch a digital advice service last July.
Despite the decision to close the consumer business, Miller says Scalable remains committed to the UK, “first and foremost through our B2B partnership on digital investing with Barclays”.
Scalable raised another €50 million in July 2020, bringing its total fundraising to €116 million.
In addition to BlackRock, one of the world’s largest asset managers, its backers include HV Holtzbrinck Ventures and Tengelmann Ventures.