Swiss impact investing robo-advisor expands into Germany
Sustainable investing is gaining ground in Europe, especially as retail investors are increasingly conscious about putting their investments to “good” use, while building wealth. InYova, formerly known as Yova, has built its platform for these investors, allowing first-time investors with as little as CHF 2,000 to invest in companies deemed as “sustainable”.
The portfolio companies on the platform are analysed according to their financial performance as well as sustainable metrics such as CO² savings, quantity of renewable energy generated or square metres of sustainable forest ownership. After generating more than 5,000 users in Switzerland, InYova has expanded into the German market.
Germany, Europe’s largest economy, was a logical next step, InYova’s CEO and co-founder Dr Tillmann Lang told Asset News. He added that the fintech investing platform is banking on playing up its strengths: getting first time investors excited about investing.
“Our approach of combining financial returns with sustainability impact mobilises people that in the past did not invest. We have proven this in Switzerland, where 73% of new customers are investing for the very first time. Germany is an ideal next step because people really care about sustainability. Only 7% of the population invest in the stock market, when compared to the UK (23%), USA (25%) and Japan (28%),” he said, adding that there is enormous potential for the fintech in many European countries. He also divulged that the fintech is in the process of doubling its team by the end of 2021.
Lang also pointed out that there is a sufficient paradigm shift going on in Germany, where “green” issues are becoming mainstream. “We are launching into Germany at a time when three major forces are converging – there is the ever-increasing commitment to sustainability, but also a race towards digitalisation, and a situation where banks are charging negative interest rates on people’s savings accounts. In short, there could not be a better time to establish Inyova as the leading investing platform for retail investors,” he told Asset News. However, Germany’s large and competitive market, with many providers and diverse customers and interests is bound to be a challenged, he added.
InYova is among the burgeoning robo-advisory platforms in Europe, which have low costs (0.6 to 1.2% based on amount invested, in this case) and no further transaction or balancing costs, catering to retail investors.