Robo-Advisor, Scalable Capital: Reviewed


#1

Hi all,

Here is our latest in our short series of robo-advisor reviews. ‘Scalable Capital Investment Review’.

At Orca Money we are adding to our comparison repertoire, by listing a couple of robo-advisors. We will be the only P2P lending and robo-advice research and comparison service in the UK and we hope you, and many others, reap the benefits of these innovative investments!

If anyone has any thoughts, queries, suggestions, please feel free to comment.

Cheers,
Jordan


#3

Scalable Capital is all over London with Ads in the Tube.


#4

@Efi

These robo-advisers (Nutmeg big time!) spend a lot on above and below the line marketing…as we at Orca Money gear up to launch our ‘Robo-Advice’ section of the site - which will include guides and product comparison - these robo-advisers are very supportive! I think they like the idea of an independent aggregator and research facility driving (cheap…) qualified leads their way.


#5

Did that approach work for Nutmeg?


#6

Has it worked for Nutmeg, being all over the tube?


#7

They doubled their assets under management, but also their operational costs in the last year I believe, so perhaps it has worked…depends how you look at it!


#8

The French robo-advisor Yomoni did subway ads when launching over a year ago, and was expecting a larger and more general public client base, but their recently announced first-year results showed 1500 clients and 6 million euros under management. Clients were - much more than expected - already affluent and investment-savvy people who were testing out the new option to see if it outperformed their existing strategies. Returns were really quite good, up to 8% depending on the risk profile chosen.


#9

@carldawson seems that the evidence from Yomoni, points to Robo-advisors providing a better service to existing investors and not that much penetration to the Underserved clientele or the Unadvised Assets (cash sitting under matresses, in current accounts etc).


#10

So far, yes, but it’s not surprising that existing investors would be more aware of the robo-advisor option and the first to risk testing it given that they already have money on the line. I think that over time, the cash-piled public will start looking for better deals for their money via robo-advisors in the same way they started looking to capitalise on their apartments via Airbnb-type services. Contributing to this will be fintechs (like Bankin’ and Linxo in France) that provide account aggregation and personal budgeting services to a mass audience - because before you can invest, you need to run a budget surplus. Aggregators/budgeters will increase the cash pile, and the robo-advisors will convert it to investment.


#11

Looks like Nutmeg just raised £30m - must have worked!


#12

This is the largest European round in the robo-advisory space; right?


#13

Thank you for sharing @OrcaJord. With reference to cheap leads, have your partners provided data on what the Cost PerAcquisition of client is? Would be interesting to see or learn of more anecdotal data.

Jovin