The competitive, saturated is increasingly showing some key players struggling to achieve scale. Swiss wealth manager UBS is continuing the trend of large firms phasing out their product after today announced the sale of its SmartWealth platform to US robo-advisor SigFig.
Launched in March 2017, SmartWealth is a fairly standard that gives users access to investment strategies entirely online through a number of funds constructed and managed by UBS.
As compared to UBS’ traditional , SmartWealth was built for those who don’t meet the £2 million asset minimum of their current clientele. With £15,000 an investor can sign on to SmartWealth.
However, the service is currently suspended for new clients, though existing customers can still log in.
says the firm’s demise at this time came as it believes the near-term potential is limited and have therefore decided to close its digital-only offering in the UK, though it was “satisfied with the commercial progress of the service.”
The SmartWealth technology, which was built entirely in-house, was also sold out to the San Francisco-based , which UBS acquired an equity stake in two year ago as part of a wider partnership. In addition to the money, the pair launched a joint advisor technology research and innovation lab, where UBS financial advisors, product experts and technologists can work with SigFig’s digital experts.
UBS said: “We are confident that SigFig is best placed to accelerate and broaden the commercial prospects of the IP behind UBS SmartWealth.”
“We believe the decision serves the best interests of the business and will allow us to invest further in other client-facing improvements, whilst sharing in the future success of the IP we have created via our equity holding and ongoing partnership with SigFig,” it added.
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