{"id":73141,"date":"2018-09-03T00:10:00","date_gmt":"2018-09-02T22:10:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/robo-advice-has-bright-future-despite-ubs-smartwealth-closure-says-globaldata\/"},"modified":"2018-09-03T00:10:00","modified_gmt":"2018-09-02T22:10:00","slug":"robo-advice-has-bright-future-despite-ubs-smartwealth-closure-says-globaldata","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/robo-advice-has-bright-future-despite-ubs-smartwealth-closure-says-globaldata\/","title":{"rendered":"Robo-advice has bright future despite UBS SmartWealth closure, says GlobalData"},"content":{"rendered":"<p>Following UBS\u2019s sale of its SmartWealth platform in the UK, the latest in a series of robo-advisor closures, Sergel Woldemichael, Wealth Management Analyst at GlobalData, offers his view: <em>\u201dThis latest closure is not the end for automated service: robo has the future, and UBS provides lessons to learn.<\/p>\n<p>\u201cCompetition in the UK robo-advice space is fierce, and providers of day-to-day banking remain the go-to for arranging investments. A strong brand and reputation can help win clients, but UBS is not a universal bank appealing to a mass market.<\/p>\n<p>\u201cAs the average account balances of the biggest UK robo platforms suggest, robo is currently mostly a mass market game. Setting fees at up to 1.8%, while most UK robo-advisors charge less than 1%, did not help SmartWealth to attract price-sensitive retail investors either.<\/p>\n<p>\u201cHigh net worth demand for robo-advice is on the rise, according to GlobalData\u2019s 2018 Wealth Managers Survey, but more so for the next generation of clients. This proves there is still a market for digital investment platforms, but robo-advisors in general may be ahead of their time.<\/p>\n<p>\u201cWhile robo-advice is here to stay, it will take time to cement itself. The digitally-savvy next generation will embrace an automated service and big banks should capitalize on this. However, a big brand is not enough to justify much higher fees. To succeed, incumbents will have to provide a level of service, and prices, that are genuinely competitive with those offered by startups.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to Sergel Woldemichael, Wealth Management Analyst at GlobalData, competition in the UK robo-advice space is fierce, and providers of day-to-day banking remain the go-to for arranging investments. A strong brand and reputation can help win clients, but UBS is not a universal bank appealing to a mass market&#8230;<\/p>\n","protected":false},"author":20,"featured_media":73139,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[2045,1655,1651,1437,1650],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/73141"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=73141"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/73141\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/73139"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=73141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=73141"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=73141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}