Home Business NewsBusinessBanking News Warburg Pincus backed Aion Bank acquires ETFmatic

Warburg Pincus backed Aion Bank acquires ETFmatic

by LLB Finance Reporter
10th Mar 21 10:29 am

Aion Bank, a full service digital bank, today announced the acquisition of ETFmatic. ETFmatic works with some of the best exchange traded funds (ETFs) in the world to offer a transparent end-to-end service to investors. ETFmatic’s proprietary investment platform and management team will be integrated into Aion’s operations, effective immediately. The deal received approval by the UK’s Financial Conduct Authority (FCA).

Wojciech Sobieraj, CEO of Aion Bank, commented: “ETFmatic has been a great partner since our Belgian launch in March 2020. We were impressed with ETFmatic’s team and technology, and importantly, the company shares our mission to provide consumers with a fully transparent experience, removing the hidden fees and commissions most banks and asset managers charge. We are the bank designed to help our members save and earn more, and portfolio management is a key product as we prepare to expand across Europe.”

Aion Bank’s all-inclusive approach to banking includes a complete package of daily banking products, multi-currency accounts, currency exchanges at interbanking exchange rates, international transfers, superior interest rates on savings accounts, competitive rates for loans, personalised financial advice, a combination of smart tools to help members save on household bills and ETF asset management, all for a fixed monthly fee.

Aion Bank developed a unique, fully digital investment questionnaire that includes components of behavioural economics to determine a member’s risk appetite. Premium Members are able to define their profile as an investor (conservative, moderate or dynamic) easily within Aion’s app. Aion then recommends a portfolio built by ETFmatic’s specialists that matches the member’s risk profile. Portfolios are automatically managed and rebalanced in order to stay aligned with the member’s risk. This user-friendly, technology-enabled approach to portfolio management services gives easy access for anyone to start investing.

In addition to ETFs from well-known providers like BlackRock and Vanguard, Aion Bank also offers its members Progressive strategy portfolios, focusing on digitisation, robotics/artificial intelligence, healthcare and clean energy themes. ETF asset management is included as part of Aion Bank’s Premium Membership without the typical management fees that most customers are charged. ETFs are currently live for Premium Members of Aion Bank Belgium, and it will be a key part of Aion’s offering in Poland when this goes live later in 2021.

Peter Deming, Managing Director and Head of FIG in Europe, Warburg Pincus said: “In today’s very low interest rate environment, Banks must find additional ways to help customers make their savings work hard. Aion Bank has always operated with this mindset, which is why we offered ETFMatic’s low-cost investment portfolios from our launch. We expect ETFMatic to grow into a leading provider in this space as other European banks follow Aion’s lead.”

The acquisition of ETFmatic will allow Aion Bank to develop additional investment products tailored for its members in each country. Additionally, ETFmatic will continue as a stand-alone brand in all markets the company is currently operating, and existing clients’ investments will continue business as usual. Aion Bank plans to grow ETFmatic’s client base in addition to creating synergies with its banking offering. Additionally, Aion plans to further expand ETFmatic’s partner solution across Europe, which makes its platform available as a white-label service.

Johan Hellman, CEO of ETFmatic, added: “When we first partnered with Aion Bank, I was drawn to Aion’s vision to provide consumers with the best in banking and financial products without the unnecessary fees and cross-sell that dominate our industry. ETFs have seen significant growth during the pandemic, and I anticipate investors will continue to look to ETFs as we see market recovery in the quarters to come. I am excited to join the Aion team and introduce more European investors to the potential of ETFs.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]