Published by Finews.asia – 6th Mar 2018
UBS is launching a robo adviser in the U.S., having worked on the project for two years. It doesn’t come cheap though, compared with rival offerings.
The offering is part of the wealth management division in the U.S. and was named UBS Advice Advantage, according to a report by «Financial Planning».
UBS says the robo adviser is more than a purely digital service, providing a comprehensive solution including advisory elements in person. The platform will support the 7,000 relationship managers in the country, said Richard Steinmeier, head of digital strategy and platforms at UBS Wealth Management in the U.S.
UBS signed up Californian fintech firm Sig Fig for the development of the product. It concluded the agreement with the company in May 2016.
RM Input
Relationship managers were asked to provide input about how they approached their prospective clients and what they needed for a successful client acquisition.
The instrument now launched will allow customers to link their accounts at other banks with the UBS robo adviser.
Higher Entry Level
The tool made available by the Swiss bank is comparatively expensive. Clients have to invest a minimum of $10,000 and the services costs 75 basis points. Rival Morgan Stanley and Bank of America/Merrill Lynch have entry levels set at $5,000 and charge 35 and 45 basis points respectively.
UBS says that the higher price reflects the added component of human advisory elements. The bank’s relationship managers will receive compensation for using UBS Advice Advantage with their clients, according to the report. «Financial Planning» said that UBS didn’t want to reveal how much the relationship managers would get in compensation.
U.K. Version Launched in 2017
UBS in 2017 launched Smartwealth in the U.K., a robo adviser, with limited success so far. Dirk Klee, the former chief operating officer of UBS Wealth Management in December told finews.com that the robo advisory had yet to become a mass phenomenon.
