Aion Bank and robo-adviser ETFmatic have teamed up to launch an end-to-end ETF portfolio service for European financial groups.
Through the service, banks will be able to embed custom-made portfolios with exposure to global equities and fixed-income products from providers such as Vanguard and BlackRock.
ETFmatic will be available in 32 European countries.
The deal follows Aion’s 2021 acquisition of ETFmatic.
A digital questionnaire is filled out by the user to determine their risk appetite and investment preferences. The service automatically manages and rebalances the portfolio to stay aligned with these preferences.
The fintech will provide a comprehensive end-to-end service, including holding client money, protecting and processing assets, executing regulated activities and dealing with investments as an agent.
ETFmatic also offers thematic, ESG and bespoke portfolios and trend-following portfolios.
Under the terms of the deal, ETFmatic will be able to use Aion’s banking licence alongside additional branch licences in Poland, Germany and Sweden.
Following ETFmatic’s acquisition, the company has formed other partnerships with European financial institutions, including German fintech UnitPlus.
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.”
The deal joins a growing list of deals within the European robo-adviser sphere.
In June 2021, JP Morgan acquired UK-based robo-adviser Nutmeg to form the basis of the bank’s digital wealth offering outside the US.
Further afield, M&G partnered with Australian firm Ignition Advice to develop a low-cost robo-advice service in 2021.
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