What happened: British WealthKernel provides an ‘embedded investment’ product offering and has announced that it has received a licence in Spain (WealthKernel). Different fintech and investment providers that don't want to develop the technology and regulatory requirements themselves use WealthKernel's investment-as-a-service solution to launch investment products. Embedding investment products into a non-financial user experience is not easy. That’s why WealthKernel and many other providers focus their sales efforts on fintech and investment companies. It seems that WealthKernel will use its newly obtained licence in Spain to target the local market but also intends to passport their licence into other European markets.
My comment: There are similar providers to WealthKernel both in the UK (i.e., Seccl) and in the EU (e.g., Upvest and Lemon Markets in Germany). However, it seems that WealthKernel is the first provider that has a licence in two different markets. The choice for Spain is a bit of a surprise to me, as I would have assumed that the adoption of investment products in Central or Northern Europe would make it easier to find partners. But perhaps the regulatory situation was a big factor in this decision. (If you know more, ping me!)
Update: A few hours after publishing this edition, Upvest announced that it has secured their licence in the UK (LinkedIn). Thus, WealthKernel was the only investment-as-a-service provider with dual setups in the UK and EU for just a few days.
