Their minimum investment was £10k. All the research has told me that HNW individuals are simply not comfortable handing over much of their assets to an algorithm and expect a more personalised and relationship based service.
When they key selling message of a platform is low cost, then inherently it becomes a volume play as robo advice is not a margin play and thus you need to target the mass market. A boutique play like Click & Invest with minimum £10k is not practical then.
Wealthfront, Betterment, Acorns on the USA and till some extent Nutmeg in the U.K. have shown that there is a market, although they struggle to make money as they haven’t hit critical mass yet.
Whether the market is growing fast enough? The Global Data survey did find an enduring and growing demand for robo-advice, with 40% of private wealth managers noting strong demand for the technology from their clients, more in the fast-growing Asia-Pacific region.
It feels to me that Investec just got their proposition wrong and is now blaming the market.