Investec shuts down its robo-advisory business in the UK

Investec, an international specialist banking and asset management group founded in 1974, announced in mid-May 2019 that it will close down its robo-advisory business, Click & Invest, in the UK. The Click & Invest business lost £12.8 (€14,6) million in the year to the end of March 2019, having lost £13.5 (€15,4) million in the year to the end of March 2018, according to FTAdviser.

Sergel Woldemichael, Wealth Management Analyst at GlobalData, said that the case of Investec closing down its business “does not mean robo-advice is coming to an end.” The closure of Click & Invest occurs at a time when the emerging industry of digital wealth management is both expanding and contracting at the same. “Although Investec are an established global and multifunctional financial services company, Click & Invest could not find its feet in the robo-advice industry,” he has pointed out. Investec’s move is not surprising since only about half a year earlier UBS announced that it will close down SmartWealth and sell robo-technology to SigFig.

“The reality has been that the appetite for investment services such as ours remains low and the market itself is growing at a much slower rate than expected,” Investec stated in the press release. Total losses are approximately £32m (€36,6) in two years. “The company’s statement announcing the closure said it will seek to use Click and Invest’s technology in other parts of the business instead,” per FTAdviser.

UK-based Investec Wealth & Investment, part of the Investec Group, launched Click & Invest just about two years ago in 2017.