Upvest and BlackRock Collaborate to Democratize Investment for Europeans

Published 7 months ago

Berlin-based fintech company Upvest has partnered with BlackRock to make investing more accessible for millions of Europeans. The collaboration will empower fintechs, banks, and wealth managers to provide their customers with transparent and efficient investment products like ETFs (Exchange-Traded Funds).

A Partnership to Harness Strengths

The partnership brings together BlackRock’s extensive asset management expertise and leadership in ETFs with Upvest’s efficient investment API. The collaboration will allow wealth managers, banks, and fintech companies to create modern investment experiences quickly. Furthermore, Upvest’s API-based infrastructure offering, renowned for its efficiency and reduced frictions, will remain open architecture.

As part of the partnership, BlackRock also participated in Upvest’s recent €30m funding round, alongside existing investors such as Bessemer Venture Partners, HV Capital, Earlybird, and others.

The Emergence of Retail Investment in Europe

In recent years, many Europeans have embraced investing, with a significant increase expected in the future. New investment proposals that offer low-cost, low-friction access are attracting a new generation of first-time investors. ETFs, with their transparency and cost efficiency, are often the centerpiece of these new investors’ portfolios. Anticipation is high for the growth of ETF savings plans, which are expected to rise from 4.9 million in 2021 to around 20 million by 2026.

The Role of an Efficient Infrastructure

Many of these new investment proposals, including those powered by Upvest, can benefit from efficient, low-friction infrastructure. Such infrastructure can reduce transaction costs and allow access from small investment amounts, enabled by innovations like fractional dealing of ETFs and stocks. These capabilities can benefit both fintechs, such as neo brokers and neo banks, and established banks and brokers.

Upvest is a leader in this sector, offering API-based investment infrastructures that enable real, physical fractional investing across ETFs, stocks, and mutual funds. This substantially lowers the entry barriers for investments, allowing investments as low as €1 in any asset class.

Leaders’ Perspectives

Timo Toenges, Head of iShares EMEA Digital Wealth business at BlackRock, expressed that the partnership would drive innovation in how Europeans access markets and make investing cheaper and simpler. Martin Kassing, Co-founder and CEO at Upvest, echoed these sentiments, stating that the partnership would drastically increase investment adoption for millions of people.

About Upvest and BlackRock

Established in 2017, Upvest’s mission is to make investing as easy as spending money. The company is regulated by the German supervision authority (BaFin) and is backed by some of the world’s largest venture capital funds and investors.

BlackRock is dedicated to helping more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, BlackRock makes investing easier and more affordable for millions of people.