Industry Updates

ETFmatic to offer custom ETF portfolios to European banks and fintechs

ETFmatic’s portfolios include thematic, ESG and trend-following options

Jamie Gordon

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Robo-adviser ETFmatic and parent company Aion Bank have partnered to launch a customisable ETF portfolio solution for financial institutions in Europe.

The service allows banks or fintechs to integrate tailor-made portfolios based on equity and fixed income ETFs from issuers such as BlackRock and Vanguard. 

Companies using the service can offer clients a digital questionnaire to determine their risk appetite and investment preferences. Portfolios will then be automatically managed and rebalanced to stay aligned with these preferences.

Outside of broad-based vanilla exposures, ETFmatic also offers thematic, ESG and bespoke portfolios, as well as trend-following portfolios which attempt to minimise drawdowns and participate in upward equity rallies.

By partnering with its parent company, ETFmatic can use Aoin’s banking licence – and additional branch licences in Poland, Germany and Sweden – to offer its white label portfolio solution across 32 countries in Europe.

The partnership also allows ETFmatic to offer an ‘end-to-end’ service, including holding client money, safeguarding and administering assets, executing regulated activities and dealing with investments as an agent.

Since being acquired last year, ETFmatic has partnered with German fintech UnitPlus and other financial institutions in Europe, the firm said.

Karol Sadaj, chief commercial officer at ETFmatic, said: “Banks and fintechs are looking for ‘sticky’ products that can drive adoption and engagement.  

“Our experience is that embedded investments provide a more stable way to grow revenue, while also providing a compelling reason to communicate and engage with end users.”

This announcement adds to an already active year for index investing in the robo-adviser space.

Last month, German online broker Scalable Capital broke through €10bn assets under management (AUM) after announcing a push into the Italian market.

In February, Vanguard’s Invest Anlageservice launched to offer index funds to German retail clients and soon after, in April, AJ Bell launched its Dodl platform to offer 30 funds and ETFs to UK investors.

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