Jean Galea

Health, Wealth & Happiness

Scalable Capital Review 2023 – A Solid European Roboadvisor

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Scalable Capital is a digital wealth management platform that aims to make investing more accessible and efficient for a wide range of investors. Founded in 2014 by Erik Podzuweit, Florian Prucker, and Adam French, the company has quickly become one of Europe’s leading robo-advisors. Focusing on technology-driven investment strategies, Scalable Capital offers personalized, cost-effective portfolio management while minimizing risk.

In this review, I’ll explore the features, advantages, and drawbacks of Scalable Capital, providing an in-depth analysis of the platform’s offerings to help you determine whether it’s the right fit for your investment needs.

Invest with Scalable Capital

Investment Approach

The investment approach of Scalable Capital is based on Modern Portfolio Theory (MPT), which aims to maximize returns while minimizing risk through diversification. The platform uses advanced algorithms and technology to create an individualized investment strategy tailored to your risk tolerance, financial goals, and investment horizon.

The platform offers its clients multiple ways to invest and grow their wealth, catering to different investment styles and financial goals. Here are the three primary ways to invest with Scalable Capital:

  1. Broker: Scalable Capital provides brokerage services that enable investors to buy and sell a wide range of financial instruments, such as stocks, bonds, and exchange-traded funds (ETFs). With their brokerage service, investors can create a custom portfolio, selecting individual securities that align with their investment strategy and preferences. This option offers investors more control over their investment choices and is suitable for those who prefer a hands-on approach to investing.
  2. Interest: Scalable Capital offers a fixed-interest investment product known as “Scalable Capital Interest Account” (previously called “Savings Plan”). This option allows investors to deposit a fixed amount of money, typically with a predetermined interest rate, for a specified period. The interest account can be an attractive choice for conservative investors or those looking to diversify their portfolio with a lower-risk investment option. The interest rates can vary depending on market conditions and the duration of the investment.
  3. ETFs (Managed Portfolios): Scalable Capital’s core offering is its robo-advisory service, where they create and manage personalized portfolios using low-cost ETFs. These portfolios are tailored to each investor’s risk tolerance and financial goals. Scalable Capital uses advanced algorithms and technology-driven investment strategies to optimize the asset allocation and maintain the desired risk level. This option is ideal for investors who prefer a passive, hands-off approach to investing, as the platform takes care of portfolio management, including regular rebalancing and risk monitoring.

These three investment options cater to a variety of investor preferences, allowing them to choose the most suitable method based on their financial goals, risk tolerance, and desired level of involvement in the investment process.

Account Opening and Onboarding Process

Opening an account with Scalable Capital is a straightforward process. First, you’ll need to provide some personal information, such as your name, address, and tax identification number. Then, you’ll be asked to complete a questionnaire to assess your risk tolerance, investment objectives, and financial situation. This information is used by the platform’s algorithms to create a personalized investment strategy tailored to your needs.

After completing the questionnaire, you’ll receive a proposed portfolio allocation based on your risk profile. You can review this allocation and make adjustments if necessary before proceeding with funding your account. The minimum investment amount for Scalable Capital is €10,000, which can be a barrier for some investors with limited capital. On the other hand, I usually advise people to build a certain size of additional wealth before they decide to start investing. The minimum investment amount of €10,000 is what I would recommend as a minimum for this purpose, so in my view this makes sense.

Portfolio Management and Rebalancing

Scalable Capital continuously monitors and manages your portfolio using its proprietary algorithms. The platform regularly rebalances your portfolio to maintain the target asset allocation and risk level, ensuring your investments stay aligned with your financial goals and risk tolerance.

Rebalancing helps to keep your portfolio’s risk in check, as it prevents overexposure to a particular asset class or market segment that may have experienced significant gains or losses. This automated process is a significant advantage of robo-advisors like Scalable Capital, as it eliminates the need for you to constantly monitor and adjust your investments manually.

Fees and Costs

Scalable Capital charges an all-inclusive management fee based on the total assets under management (AUM). The fee starts at 0.75% per year for portfolios up to €50,000, with a tiered fee structure that reduces the fee as your investment amount increases. For example, the fee drops to 0.50% per year for portfolios between €50,000 and €200,000, and 0.35% per year for portfolios above €200,000.

This management fee covers all the costs associated with the platform’s services, including portfolio management, rebalancing, and custody fees. However, it’s essential to note that ETF expense ratios, which are inherent to the underlying funds, are not included in the management fee and will be an additional cost for investors.

Performance and Risk Management

Scalable Capital uses a dynamic risk management approach to ensure your portfolio stays within your desired risk level. The platform’s algorithms monitor market conditions and adjust your investments accordingly to maintain the target risk level. This process may involve adjusting the allocation of assets in your portfolio or switching to less volatile ETFs during periods of market uncertainty. This dynamic approach to risk management helps protect your portfolio from extreme market fluctuations while still pursuing your long-term investment objectives.

It’s important to note that past performance is not indicative of future results, and individual investment outcomes may vary. That being said, Scalable Capital’s focus on risk management and diversification aims to provide more stable returns over time, reducing the likelihood of significant losses during market downturns.

User Interface and Mobile App

Scalable Capital’s user interface is intuitive and user-friendly, making it easy to navigate and access all the features the platform has to offer. The platform provides a comprehensive dashboard that displays your portfolio’s performance, allocation, and historical data. This allows you to stay informed about your investments and make adjustments as needed easily.

The platform also offers a mobile app, available for both iOS and Android devices, enabling you to manage your investments on the go. The app includes all the functionality of the web-based platform, allowing you to track your portfolio’s performance, make deposits, and even adjust your risk tolerance directly from your smartphone or tablet.

Customer Support

Scalable Capital provides a variety of customer support options to address any questions or concerns you may have. You can reach their support team via email, phone, or live chat. From my experience, the customer support team has been responsive and helpful in addressing any issues or inquiries I had.

Some Drawbacks to Consider

While Scalable Capital offers many benefits for investors, there are a few drawbacks to consider as well. The minimum investment amount of €10,000 can be a barrier for some investors with limited capital, potentially excluding those who are just starting out on their investment journey.

Additionally, the platform’s investment offerings are primarily limited to ETFs, which may not be suitable for investors looking for a more hands-on approach or access to individual stocks, bonds, or alternative investments.

Alternatives to Scalable Capital

Here are a few robo-advisors and digital wealth management platforms that are available across Europe and that are worth looking into, with the final selection being dependent on your needs and ideas around investing.

  1. Moneyfarm: Founded in Italy and operating across Europe, Moneyfarm provides personalized investment portfolios based on ETFs. The platform offers a user-friendly experience, a tiered fee structure, and access to a team of investment consultants for personalized advice.
  2. Raisin: A pan-European savings and investment platform, Raisin partners with various banks and financial institutions across Europe to offer a wide range of investment products, including savings accounts, term deposits, and ETF portfolios. Raisin focuses on providing competitive returns, diversification, and a user-friendly platform.
  3. Etoro: A social trading and investment platform with a global presence, Etoro offers a range of investment options, including stocks, ETFs, commodities, and cryptocurrencies. Etoro allows users to follow and copy the investment strategies of other traders on the platform, which can be particularly appealing to novice investors.

Final Thoughts

Overall, I find Scalable Capital to be an attractive option for investors seeking a technology-driven, personalized investment solution. The platform’s emphasis on risk management and diversification, combined with its intuitive user interface and comprehensive support options, make it a compelling choice for those looking to simplify and optimize their investment process.

However, it’s essential to be aware of the platform’s constraints, such as the minimum investment amount and the focus on ETFs, when evaluating its suitability for your individual needs. As with any investment platform, it’s crucial to conduct your own research, consider your financial goals and risk tolerance, and ensure that the platform aligns with your overall investment strategy.

In conclusion, if you’re an investor looking for a robo-advisor that offers a personalized, risk-aware approach to investing, Scalable Capital may be worth considering. Its features cater to a variety of investment styles and preferences, but as always, carefully assess the potential risks and rewards before committing your hard-earned money to any investment platform.

Invest with Scalable Capital

Making Malta Your New (Low-Tax) Home: A Guide for Expats

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Malta, a small Mediterranean island nation, has become an attractive destination for expats, entrepreneurs, and digital nomads due to its pleasant climate, rich history, and business-friendly environment.

It also happens to be the country where I was born and raised, although I left in my mid-twenties due to several issues that have remained largely unresolved. While I left and am happily living elsewhere, I still consider the island country to be an interesting proposition for expats who want to make a tax optimization move and also experience a different lifestyle than what they are used to.

Malta has become well-known internationally for being a low-tax jurisdiction, although the Maltese themselves pay up to 35% in tax. The reason for the low-tax reputation is that there are a number of attractive programs for individuals and their families considering a move to Malta.

Let’s do a quick rundown of the programs available.

The Global Residence Program

The Global Residence Program (GRP) is designed for non-EU nationals who want to establish their tax residence in Malta. This scheme provides a flat tax rate of 15% on foreign-sourced income remitted to Malta, with a minimum annual tax liability of €15,000. The program is open to individuals who own or rent property in Malta and are not employed in Malta. The program also allows for the tax-free importation of personal belongings and vehicles. In addition, the Malta Global Residence Programme can also be combined with the 6/7 tax refund scheme.

The Malta Retirement Program

The Malta Retirement Program (MRP) is designed specifically for retirees who are looking to spend their retirement years in Malta. It offers attractive tax benefits to individuals who are over 55 years of age, have a stable income from outside Malta, and who are able to meet a minimum annual income requirement. Successful applicants are granted a special tax status that limits their liability to tax only on income received in Malta and income remitted to Malta, with a minimum tax payable of €7,500 per year.

The Residence Program

The Residence Program offers non-EU/EEA/Swiss citizens the opportunity to obtain a Maltese residence permit. Successful applicants are granted the right to live and work in Malta, as well as travel freely within the Schengen Area. The program requires applicants to make a financial contribution to the Maltese government, invest in property or rent a property, and meet other eligibility requirements.

The scheme provides a flat tax rate of 15% on foreign-sourced income remitted to Malta, with a minimum annual tax liability of €15,000. The program is open to individuals who own or rent property in Malta and are not employed in Malta. The program also allows for the tax-free importation of personal belongings and vehicles.

The Highly Qualified Persons Program

The Highly Qualified Persons Program (HQPP) is designed for individuals who hold senior positions in eligible companies in Malta’s financial services, aviation, and gaming sectors. The scheme provides a flat tax rate of 15% on qualifying income, including employment income, fringe benefits, and director’s fees. The program is open to individuals who earn a minimum gross income of €75,000 per annum and have a relevant employment contract.

The Malta Individual Investor Program

The Malta Individual Investor Program (MIIP) is designed for high-net-worth individuals who are interested in obtaining Maltese citizenship. Successful applicants gain citizenship, as well as access to Malta’s tax-efficient environment.

The Malta Individual Investor Program (MIIP) can be combined with the 6/7 tax refund scheme to maximize the tax benefits for the individual. The 6/7 tax refund scheme allows individuals who are not domiciled in Malta to pay a flat rate of tax on foreign-sourced income remitted to Malta, with the possibility of obtaining a tax refund of up to 30% on that income.

To qualify for the 6/7 tax refund scheme, individuals must meet certain criteria, such as having a minimum taxable income of €35,000 and not having been resident in Malta for five out of the past six years. The MIIP requires a significant investment in Malta, such as a minimum investment of €650,000 in government-approved financial instruments, a €150,000 donation to a Maltese philanthropic organization, and the purchase or rental of a property in Malta.

By combining the two programs, individuals can benefit from the favorable tax regime under the 6/7 tax refund scheme and also obtain Maltese citizenship and the associated benefits under the MIIP. However, it is important to note that the MIIP is subject to strict due diligence procedures to ensure the suitability of the applicant and to prevent any potential abuse of the program.

Malta Startup Visa Program

The Malta Startup Visa Programme is aimed at non-EU/EEA/Swiss entrepreneurs who want to establish their startup in Malta. This program provides fast-track visa processing and access to a supportive ecosystem of mentors, investors, and other resources. The 6/7 tax refund scheme can also be applied to eligible startup companies that meet certain conditions, such as having at least one director or employee residing and paying taxes in Malta.

Digital Nomad Visa

In 2021, Malta introduced a Digital Nomad Residence Permit. This allows remote workers to stay in Malta for up to one year while working for a company or clients based outside of Malta. To be eligible for the permit, applicants must earn at least €30,000 annually and provide proof of income, as well as have health insurance and a clean criminal record. The permit also allows for dependents to accompany the applicant. The program is aimed at attracting remote workers to Malta and encouraging them to spend money on the island while working remotely.

Negative Perceptions of the Programs

There have been reports of some abuses of these programs, particularly the Malta Residence and Visa Program. Critics have argued that the program has been used by wealthy individuals as a means to buy residency, with some dubbing it a “golden visa” scheme.

Additionally, there have been concerns about the impact of such programs on the local property market. Critics have argued that the influx of foreign buyers has driven up property prices, making it harder for locals to find affordable housing.

Moreover, some people have expressed concern that these programs may be used as a means for tax evasion. While the programs themselves are legitimate and legal, there have been reports of individuals using them to hide assets or evade taxes in their home countries.

Negative perceptions about these programs are also fueled by the fact that they are often associated with the wealthy elite. Some people view these programs as a way for the rich to avoid paying their fair share of taxes and to live a privileged lifestyle while ordinary people struggle to make ends meet.

These criticisms are not necessarily reflective of the programs themselves, but rather the potential for abuse and misuse by some individuals. As with any program or policy, there will always be those who seek to take advantage of it for their own gain.

Moving to Malta – What to Consider

If you’re considering setting up in Malta, this guide will provide you with the essential information to get started.

Residency and Visa Requirements

To set up in Malta, first determine the type of visa or residency permit you require. EU, EEA, and Swiss nationals can live and work in Malta without a visa. However, if you are a non-EU/EEA/Swiss citizen, you may need to apply for a visa or a residence permit, depending on your plans and the duration of your stay. You can find more information on the Maltese Identity Malta Agency website.

Registering a Business

Malta offers a business-friendly environment with various types of legal entities to choose from, such as a limited liability company (LLC), partnership, or sole proprietorship. You will need to register your business with the Malta Business Registry and obtain a tax identification number. Additionally, you may need to apply for specific licenses or permits, depending on your industry.

In my view, Malta remains one of the top places in Europe to register your business. This applies especially to internet-based businesses in particular. You can read my article about setting up companies in Malta for more information.

Banking

Malta has a number of solid banks, although they have become notoriously strict and demanding when opening new accounts. Depending on your situation, you might find that opening a bank account at a Maltese bank is an unnecessarily painful process. If that’s the case, I would recommend using an online bank like Revolut or Wise instead. You can also read the article I wrote on opening bank accounts in Malta.

In fact, I would recommend opening accounts with those two online banks even if you do manage to open a Maltese bank account. It is much easier to transfer money between friends and operate multiple currencies using Revolut and Wise than any Maltese bank.

Taxation

Malta has a progressive income tax system, and tax rates range from 0% to 35%. The country also has an extensive network of double taxation treaties with numerous countries to avoid double taxation. VAT in Malta is set at 18% for most goods and services. It’s essential to understand the tax implications for your business and personal income, so consulting with a local accountant is recommended.

Of course, Malta is also known as a place where expats move to in order to obtain advantageous tax treatment. If you’re interested in exploring that option, I suggest you have a consultation with a Maltese lawyer to see what would work in your situation.

Cost of Living

Malta’s cost of living is generally considered to be moderate compared to other European countries. The cost of food, transportation, and utilities is relatively low, while housing costs can vary depending on the location and size of the property. It’s also important to note that prices for certain goods and services may be higher than in other EU countries due to Malta’s remote location and limited market size.

Finding a Place to Live

Malta offers various types of accommodations, from apartments to traditional townhouses and villas. Popular areas for expats include Sliema, St. Julian’s, and Valletta. You can search for rental properties on local websites or work with a real estate agent to find a suitable place to live.

In general, expats can expect to pay around €700-€1,500 per month for a one-bedroom apartment in a central area of Malta. However, prices may be higher in popular expat areas like Sliema and St. Julian’s.

Healthcare

Malta has a high-quality public healthcare system that is free for residents, including EU citizens. Private healthcare is also available, and many expats opt for private health insurance to access a broader range of services and shorter waiting times.

Climate

Malta enjoys a Mediterranean climate, with hot and dry summers and mild winters. The island receives an average of 300 days of sunshine per year, making it an ideal destination for those seeking warm weather year-round. However, summers can be very hot and humid, with temperatures reaching over 30°C. Winters are mild but can be rainy and windy. Overall, Malta’s climate is one of its biggest draws for expats and tourists alike.

Culture and Lifestyle

Malta has a rich cultural heritage, with influences from its Phoenician, Roman, Arab, and British history. The country is known for its stunning architecture, delicious cuisine, and vibrant festivals, such as the Carnival in February and the Isle of MTV music festival in June. Expats can enjoy a variety of activities in Malta, including swimming, hiking, and exploring the island’s historical sites. The island also has a thriving nightlife scene, particularly in areas like St. Julian’s and Paceville.

Networking and Integration

Joining local expat groups and attending networking events can help you connect with like-minded individuals and ease your transition to life in Malta. There are various social and professional networking groups and platforms available to help you establish connections within your industry and the local community.

Safety

Malta is considered a safe country, with low levels of crime and violence. The country has a well-trained police force and a low incidence of terrorism. However, expats should still take precautions to protect their personal safety, such as avoiding isolated areas at night and keeping valuables secure.

Work and Business Environment

Malta has a growing economy, with a focus on financial services, gaming, and tourism. The country has a business-friendly environment, with low corporate tax rates and various incentives

Language

Malta has two official languages, Maltese and English. English is widely spoken throughout the country, with most official documents and signs being in English. This makes it an attractive destination for English-speaking expats and businesses. Additionally, many Maltese people speak other languages, such as Italian and French, due to the country’s close proximity to these countries and its history of colonization.

Education

Malta’s education system is modeled after the British system, with schools offering primary, secondary, and tertiary education. There are a variety of schools available, including public, private, and international schools. English is the main language of instruction in most schools, with Maltese also taught as a second language. The University of Malta is the country’s main university, offering undergraduate and postgraduate programs in a range of fields.

In my opinion, the level of education in Malta is good, but not on par with the best international options. The biggest benefit of educating your children in Malta is that you get free schooling in English, which is quite unique internationally if you go outside the big English-speaking nations.

On the other hand, if you’re really after giving the best education to your kids, you will find much better private schooling options abroad. I can personally compare it with the options available in Spain, and to me, there is no doubt that the private schools in Spain, particularly those adopting the American model, are far superior to any option in Malta.

Conclusion

Setting up in Malta can be an exciting and rewarding experience. By understanding the legal requirements, finding suitable accommodation, and building a network, you’ll be well on your way to enjoying all that this Mediterranean gem has to offer.

It can also be a very frustrating experience if you don’t do your research properly and go in with the wrong expectations. Most expats are not prepared for what life on a crowded tiny island, especially if they come from big countries. Making this move can certainly provide some psychological challenges in the adaptation period, so if I had one piece of advice, it would be to find the right people to help you out, and try to make friends as early as possible. A few visits before you make a definite move are also essential, in my opinion.

If you need more specific information, feel free to ask, and I would be happy to help. I can also connect you to my trusted lawyers and other professionals in Malta.

Pickleball vs. Padel: A Comparison of Two Rapidly Growing Racket Sports

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Pickleball and padel are two exciting racket sports that have been gaining popularity worldwide. Both sports offer fun, social, and competitive experiences, making them attractive to players of all ages and skill levels. In this article, we’ll take a closer look at the similarities and differences between pickleball and padel, exploring the gameplay, equipment, rules, and benefits of each sport.

Origins and History

Pickleball originated in the United States in 1965, created by a group of friends looking for a fun and accessible game to play with their families. The sport has since grown exponentially, with millions of players in North America and around the world.

Padel, on the other hand, was invented in Mexico in 1969 by Enrique Corcuera. The sport quickly gained popularity in Spain and other Spanish-speaking countries before spreading across Europe and beyond. Today, padel is one of the fastest-growing sports globally, with a rapidly expanding fan base.

Gameplay and Rules

Pickleball is a combination of elements from tennis, badminton, and table tennis. It’s played on a court similar to a badminton court, with a lower net and smaller playing area. Pickleball is typically played in doubles, although singles matches are also possible. The game starts with an underhand serve, and points are scored by the serving team when the opposing team fails to return the ball or commits a fault.

Padel is a blend of tennis and squash, played on an enclosed court about a third the size of a tennis court. The court has walls on all sides, allowing players to use them to play the ball, much like in squash. Padel is almost exclusively played in doubles, and the scoring system is identical to that of tennis.

Equipment

Pickleball is played with a perforated plastic ball, similar to a Wiffle ball, and solid paddles made of wood or composite materials. The paddles are larger than table tennis paddles but smaller than traditional tennis rackets.

In padel, players use solid rackets with no strings, typically made from a composite material with a perforated surface. The ball used in padel is similar to a tennis ball but has slightly less pressure, resulting in a slower bounce.

Accessibility and Fitness Benefits

Both pickleball and padel are easy to learn and accessible to players of all ages and skill levels. The sports emphasize hand-eye coordination, strategy, and teamwork over physical strength and endurance, making them appealing to a broad range of participants.

Pickleball and padel provide excellent cardiovascular workouts, improving endurance, agility, and balance. Both sports offer a low-impact exercise option, putting minimal stress on joints and muscles, making them suitable for older players or those recovering from injuries.

Popularity and Growth

While pickleball has been more popular in North America, padel has seen significant growth in Europe and Latin America. Both sports are experiencing rapid expansion, with new courts and clubs being built worldwide and an increasing number of tournaments and competitive events.

Conclusion

Pickleball and padel are two exciting racket sports that offer engaging, social, and accessible gameplay for players of all ages and abilities. While they share some similarities, each sport has its unique characteristics, rules, and equipment. As their popularity continues to grow, more and more people are discovering the joys of pickleball and padel, making them excellent options for those looking to try something new or add variety to their fitness routines.

I’ve played both sports and while I find padel much more exciting and enjoyable, pickleball is more accessible and easier to set up since it doesn’t require any construction work to prepare a court, beyond the painting of the lines and the net. So

Ultimately I’m excited about the growth of both sports, because they are both helping people get back into sports after long absences, as well as providing a healthy way to socialize.

Esketit Review 2023 – One of the Hottest P2P Platforms

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If you’ve been exploring opportunities in the consumer loan space and are curious about the Esketit platform, then you’re in the right place.

Esketit is a fintech company that’s been generating some buzz in the consumer loan market. Their focus is on providing transparent and accessible financing solutions to borrowers, but they also offer a unique opportunity for investors like us to participate in this growing industry. As someone who’s always keen on exploring new investment opportunities, I found their approach quite intriguing.

Esketit was founded in December 2020 by Davis Barons and Matiss Ansviesulis, who also established the highly successful Creamfinance Group. Since its inception in 2012, Creamfinance has been consistently profitable, generating an impressive revenue of 70 million in 2019.

Affiliated loan originators issue the loans on Esketit, ensuring transparency and easy oversight throughout the entire process. Davis and Matiss adopt a ‘skin in the game’ strategy, which gives investors greater confidence in the Esketit Platform.

Investing in personal loans through the Esketit Platform is simple and secure. With operations across five diverse markets, Esketit provides investors with access to a global landscape. By joining Esketit, you can benefit from top-tier practices in the P2P lending industry and enjoy high returns without compromising security.

Invest on Esketit

The Investment Process

The Esketit platform streamlines the process of investing in consumer loans. To start, you’ll need to create an account and complete the necessary verification steps. Once you’re all set, you can browse the available loans on the platform, assess the risk levels and potential returns, and decide which loans to invest in.

What I appreciate about Esketit is the detailed information they provide about each loan, such as the borrower’s credit score, loan purpose, and repayment history. This transparency allows investors like us to make informed decisions and effectively manage the risk-reward balance.

Founders’ Skin in the Game

The founders of Esketit, Davis Barons and Matiss Ansviesulis, follow a “skin in the game” approach. This means that they invest their own money alongside the investors on the platform. By co-investing, the founders demonstrate their confidence in the platform’s performance and align their interests with those of other investors. This approach adds a layer of assurance for investors using the Esketit platform, as the founders have a personal stake in ensuring the platform’s success and the quality of the investment opportunities offered.

Diversification Opportunities

One key aspect of successful investing is diversification, and Esketit doesn’t disappoint in this regard. The platform offers a wide variety of consumer loans, including personal loans, auto loans, and home improvement loans, among others. This variety allows investors to build a diversified portfolio and spread their risk across different loan types and borrowers.

Auto-Invest Feature

Esketit’s auto-invest feature is something I find particularly appealing. This tool allows you to set specific investment criteria and automatically allocate funds to loans that match your preferences. It’s a real time-saver for busy investors like me who want to maintain a diversified portfolio without having to constantly monitor and manually invest in individual loans.

Returns and Risk Management

Esketit offers competitive returns compared to traditional investment options, with annualized yields typically ranging from 5% to 15%, depending on the risk profile of the loans you choose to invest in. Of course, higher returns come with higher risks, so it’s essential to be diligent in your loan selection process and employ proper risk management techniques.

To help mitigate risk, Esketit employs strict underwriting standards and performs thorough due diligence on all borrowers. Additionally, the platform offers a secondary market where you can sell your investments before the loan term ends, providing liquidity in case you need to exit your investment early.

Customer Support

From my experience, Esketit’s customer support has been responsive and helpful. They offer multiple channels for communication, including email, phone, and live chat. This level of support is comforting, as it ensures that any questions or concerns you may have as an investor are addressed promptly.

Some Drawbacks to Consider

No investment platform is perfect, and Esketit has its drawbacks as well. One thing to keep in mind is that investing in consumer loans involves a certain level of risk, and there’s always the possibility of borrowers defaulting on their loans. It’s essential to be aware of these risks and manage your investment strategy accordingly.

Additionally, the platform is relatively new, so it’s yet to establish a long track record. While the early results seem promising, it’s important to approach such investments with caution and stay up-to-date with any developments that could impact the platform’s performance.

Alternatives to Esketit

Esketit faces competition from several other prominent platforms in the European P2P lending and investment industry.

Mintos, a well-established player in the market, offers a wide range of investment opportunities in loans issued by various loan originators.

Bondora, another competitor, has been operating since 2009, providing access to consumer loans from multiple European countries.

PeerBerry, a relatively newer platform, focuses on short-term consumer loans with a buyback guarantee, catering to investors seeking lower-risk investment options. Each of these platforms has its unique selling points, such as the range of loan types, geographical diversification, and risk management features. Investors should carefully consider their specific needs and preferences when choosing a platform to diversify their portfolios in the growing P2P lending space.

Final Thoughts

Overall, I find Esketit to be an interesting investment opportunity in the consumer loan space. The platform offers a streamlined process, detailed loan information, and attractive diversification opportunities. The auto-invest feature and competitive returns make it an appealing option for investors seeking exposure to this growing market.

That being said, it’s crucial to remember that investing in consumer loans comes with inherent risks, and the platform’s relatively short track record means that caution is warranted. As with any investment, it’s essential to do your own research, employ proper risk management techniques, and ensure that your investments align with your overall financial goals and risk tolerance.

In conclusion, if you’re an investor looking for an alternative investment opportunity in the consumer loan market, Esketit might be worth considering. The platform offers various features that cater to different investment styles and preferences. As always, be sure to carefully assess the risks and weigh them against the potential rewards before diving in.

Invest on Esketit

Banking Options for Businesses in Malta – Is it Possible to Open an Account?

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Malta, a small island nation in the Mediterranean, has long been a popular destination for businesses seeking a favorable tax environment and robust regulatory framework. However, opening a bank account in Malta as a business entity has become increasingly challenging in recent years due to the country’s low-risk policies. In this article, I will explore the banking options available to businesses in Malta and discuss how to navigate these challenges.

The Big Players: Bank of Valletta and HSBC

The largest banks in Malta are Bank of Valletta and HSBC. While these institutions offer a wide range of banking services and have a strong presence in the country, they have adopted low-risk policies that make it difficult for many businesses to open accounts. This is due in part to Malta’s unfortunate greylisting a few years ago. Although the country is no longer grey-listed, the financial sector has tightened up significantly to curb any abuses.

The chances of opening a bank account with these two banks are slim, especially if it’s for a non-traditional business. They are simply not willing to take any chances and are not very interested in attracting new business.

Alternative Banking Options: Agribank and Sparkasse

For businesses that encounter difficulties opening accounts with Bank of Valletta and HSBC, there are alternative banks that may prove more amenable. Agribank, an agricultural and commercial bank, has had some success in accommodating businesses unable to establish accounts with larger banks. Similarly, Sparkasse Bank Malta, a subsidiary of the German Sparkassen Group, has been known to provide banking services to companies facing challenges with the larger institutions.

Other banks that operate in Malta and could potentially serve as alternatives include APS Bank, Lombard Bank, and FIMBank. These banks may be more accommodating to foreign businesses, but it is essential to research their specific requirements and policies to determine whether they are a good fit for your company.

It is quite common for these alternative banks to charge an application fee, in order to cover their costs of processing the application and determine if your business would be a good fit. They will also typically charge extra fees on a yearly basis when compared to the larger banks that don’t have any fees beyond the usual card fees and currency conversion fees.

The Hassle-Free Option: Wise (formerly TransferWise)

For businesses seeking a more straightforward solution, Wise (formerly known as TransferWise) is an excellent option. This fintech company provides borderless accounts, allowing businesses to receive and make payments in multiple currencies with minimal fees. While Wise is not a traditional bank, it offers many of the core banking services that businesses need, such as a debit card and currency conversion.

Wise’s borderless accounts are especially useful for businesses with international transactions and make it easier to manage finances without dealing with the stringent requirements of Maltese banks.

Open a business account with Wise

Conclusion

While opening a bank account in Malta as a business entity can be challenging due to the country’s risk-averse banking policies, there are options available for those who persevere. By considering alternative banks like Agribank and Sparkasse or using innovative financial solutions like Wise, businesses can successfully establish their banking presence in Malta and reap the tax benefits of operating in this country.

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Jean Galea

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