Vanguard applies for banking license in Germany

Wednesday 24 March 2021 09:58 CET | News

The US-based investment company Vanguard has announced applying for a banking license in Germany to offer robo-advisors. 

This decision is part of Vanguard's strategy to market low-cost investing options to small investors in continental Europe through robo-advisors. According to a Vanguard official, they believe their investing strategy will also appeal to German investors.  Vanguard faces competition in Germany, seeing as around 20 robo-advisors are currently already active in the German industry, which is estimated to be worth EUR 5 billion.

Vanguard had previously contemplated launching the robo-advisor in Switzerland. Ultimately, the firm recruited a Solaribank co-founder and Ratepax executive to oversee the proposed offer in Germany.
Vanguard's full robo-offering, Digital Advisor, was launched in 2020. Customers can choose between a service that provides personal support, which is slightly more expensive, and a fully automatic, cheaper offer.


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Keywords: online banking, mobile banking, expansion, investment
Categories: Banking & Fintech
Countries: Germany
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Banking & Fintech

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