Roboadvisors turn five in Spain

According to Feelcapital

  • The CNMV authorized Feelcapital as the first financial robot in Spain on July 30, 2014.
  • In Spain, nine roboadvisors of independent entities operate with more than 2.5 billion euros in assets under advice and management.

By Funds Society, Madrid
Financial robots have just completed their fifth anniversary in Spain . The National Stock Market Commission (CNMV) granted on July 30, 2014, after two years of study, the first license to EAF Feelcapital, which became the first automatic advisory service in regulated investment funds, not only from Spain, but from all over Europe.

Since then, the Spanish regulator has licensed eight other independent companies that followed in the wake of Feelcapital and developed this type of automated advice and management platforms for investors: Kau Markets EAF (November 2015), Indexa Capital (December 2015), Finizens (January 2017), Inbestme (February 2017), Imdi Funds and Finanbest (March 2017), Micappital (December 2017) and Accurate Quant (February 2018). In total, they manage around 2.5 billion euros of more than 15,000 investors.

Financial institutions are also starting to develop fintech services in Spain. This is the case of ING, Santander through its subsidiary Openbank with Openbank Wealth, AndBank with MyInvestor, CaixaBank with Smart Money, Bankinter with PopCoin and BBVA with BBVA Invest.

In addition to Spanish financial robots, other robotic platforms also operate in Europe. Nutmeg in the United Kingdom since (2016), Scalable Capital since 2014 in Germany, Austria and the United Kingdom; French Yomoni also since 2014 and Moneyfarm in Italy, Germany and the United Kingdom since 2016. Together they manage around 1.5 billion euros.

In the United States, the pioneers were Betterment and Wealthfront (2008). They were followed by Personal Capital (2011), Charles Schwab Intelligent Portfolios and Vanguard Personal Advisor (2015). Today there are many more operating in the largest economy in the world, but only among these five have almost $ 86 billion in assets under management.

Growth forecasts are optimistic. Antonio Banda, CEO of Feelcapital , believes that if banks start using these robotic services “they will finally be able to offer truly personalized services to their customers, a chimera so far.” Banda ensures that the possibility of “individualizing the risk profile of each investor and offering what really suits their investment needs will grow exponentially these roboadvisors, which will be essential to improve the advisory services they give their clients today.”

“We have shown that algorithms can search profitability effectively and beat benchmarks without problem,” says Banda.