20 Mar BinckBank acquires Pritle
BinckBank acquires robo-advisory firm Pritle for EUR 12.5 million
BinckBank‘s acquisition of Pritle can be seen as a bid to increase the growth of its online portfolio management services, in order to keep up with competition and create new growth opportunities abroad. Both companies have general complimentary geographic allocation of services, with Pritle operating in the Netherlands, Belgium, Austria and Switzerland. BinckBank has also stated their intent to create a foothold in the German market, highlighting their international strategy.
The broader context of the acquisition, which has cost BinckBank EUR 12.5 million, revolves around a trend of of increasing automation in the wealth and portfolio management business. The label created by Pritle over the last years consists of an automated portfolio management service which allows customers to create a profile, along with a financial goal and risk requirements, for which Pritle generates a customized investment strategy based mostly on passive index funds, which are generally cheap and effective for small private investors.
BinckBank wants to incorporate Pritle’s platform under its own label, effectively being the first robo-advisory acquisition in continental Europe. The trend of robo-advisory and passive index funds is driven by a desire of consumers for affordable and accessible wealth management, coupled with occasional advice on their financial status and investments. Currently, many of these services are expensive, as investment professionals are often very well compensated for their work. Automation is therefore needed to allow for affordable advice. Although the US and the UK are at the forefront of this development, the acquisition of Pritle might be the first step of making robo-advisory driven wealth management services available across a large part of Europe.