Newly launched robo-adviser Scalable Capital is growing its assets under management by between €2m (£1.7m) and €4m (£3.4m) a week, its founder has said.
Adam French said the company is not currently releasing figures for how much its total assets are but said it has been growing since its UK launch in July.
Mr French, a former Goldman Sachs executive director, said Scalable Capital currently has around 1,600 clients in the UK and Germany, where it launched first.
He said: “What is interesting is that the weekly growth is not coming from one clear source. It is coming from new clients but we are also seeing people put in top-ups. They have been testing us out and are now coming back to top up.
“The third channel is through people transferring to Scalable Capital.”
Scalable Capital launched in Germany first because it received its regulatory permissions there before it got them from the Financial Conduct Authority.
The robo-adviser has a minimum initial investment amount of £5,000, which Mr French said allows it to root out some of the problems other similar companies might face.
He said: “If you are paying £200 to acquire a customer and that customer brings £40,000 of assets we are only paying 0.5 per cent of assets and we are charging 0.75 per cent all in so we can basically make money out of that client if we have a relationship for longer than a year.
“We are happy to pay 0.5 per cent to acquire a client but if you are marketing to people who are bringing £250 or £500 then you cannot pay £200 to acquire them.”
Mr French said this was the “luxury problem” in that his service only needed to acquire a few thousand clients.
He said some of its German clients have deposited millions of Euros on the platform.
Mr French added that Scalable Capital does not provide advice, and he said that as a manager of money he did not see it as his role to do so.
He said: “How can you be independent if the adviser and the money manager are not separate?”