While some banks are looking to build or acquire their wealthtech offerings, UBS is closing its U.K.-based digital wealth management platform and selling intellectual property to SigFig, according to Reuters. The U.S. wealthtech firm, which raised $50 million in funding earlier this summer and already has a close relationship with the Swiss bank, has hinted at international expansion.
UBS built the pilot program, SmartWealth, and launched the offering in early 2017. “While we were satisfied with the initial commercial progress, at this time we believe the near-term potential is limited and have therefore decided to close our digital-only offering in the U.K.,” noted Eva Lindholm, head of the bank’s U.K. wealth management division, and Reto Wangler, chief operating officer of global wealth management, in their reported assessment of the service. The same memo noted the bank’s equity stake in SigFig, describing an agreement to sell IP to the fintech company and nixing a plan to roll out a broader SmartWealth offering as late as December 2017.
The SmartWealth pilot program provided digital real-time investing advice for accounts with a £15,000 ($19,300) minimum. It’s an appeal to a different clientele than the bank has traditionally served in its wealth management division.
Financial terms were not disclosed, according to Reuters.
