BlackRock-backed neobroker Scalable Capital has won a European Central Bank banking licence and will now boost its investment platform by offering banking services across the EU.
The German investment platform, which raised €155m in equity at a valuation of about €1.5bn earlier this year, is looking to bulk up its services to better compete against neobroker rivals like Trade Republic and establishment players like Fidelity.
Scalable already offers brokerage, wealth management, ETFs, and crypto products but now plans to expand its offering to include banking products, such as savings and lending across the EU. It plans to offer loans of up to €100,000 in Germany, after which the loans will be rolled out across the EU.
The licence means Scalable can also accept client funds as deposits. The Munich-based startup, which has more than one million customers, is also backed by Tencent, HV Tengelmann, and Sofina. Erik Podzuweit, founder and Co-CEO of Scalable Capital, said: “We now have all the building blocks necessary to unleash our full potential for our clients across Europe.
“As we do so, we continue to set new standards and expand our offering, providing clients and their families with everything they need for investing, saving, and financing."
Florian Prucker, founder and Co-CEO of Scalable Capital, says: “Our strength lies in our unique, fully vertically integrated business model. We develop our technology ourselves and serve the entire value chain with our own full banking licence.”
Scalable offers its services in Germany, the UK, Spain, France, Italy and other EU markets.
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