Luxembourg investment solutions startup Ekonoo is expanding its activities and since 7 June has begun offering its employee savings services to partners.
The fintech/insurtech was founded by dream team Guillaume Ostenc and Ludovic Nicol-Ducourtioux, who first met 20 years ago. Back then the two were consultants, part of a team of five working for Crédit Lyonnais to develop an occupational and retirement savings business separate from the Crédit Lyonnais Asset Management.
“We created a new platform for Crédit Lyonnais Asset Management, which was then bought by Crédit Agricole Asset Management,” recalls Guillaume Ostenc.
Talks with an insurance company, which is among the firms currently using the platform the two co-created, triggered a reflection on the pressing needs of the aging banking system in France.
“We said well that we might as well create a new platform but this time by ourselves,” the founder explained.
Greater Transparency
Ekonoo was founded as an investment firm in September 2019. Regulated by the CSSF, and with Luxinnovation subsidies of around €1m, the firm’s goal was to bring greater transparency and propose a free offer for companies.
“In the French market, when a company wants to create an employee savings account or an occupational retirement savings account, usually they have to pay for part of it and the employee chooses funds that are chosen by the operating company and which often have quite high expense ratios,” the founder explained.
Cost Reductions
Ekonoo’s offer pledges to reduce the costs associated with indexed asset management, such as financial advisor commissions, proposing innovative savings for the long and medium term.
The firm made its first sales by partnering with insurance groups, which use the Ekonoo platform to sell their offers. Ekonoo recently launched an offer for the French market. Among the added advantages of the platform will be the fact that it can handle both insurance and banking products. Further down the line the firm, which counts 47 staff at its Avenue de la Liberté office, plans to move to other markets after France. The founder says that once legislation changes in Luxembourg it too will be a viable market to expand to.
