Robo-adviser SigFig is expanding its reach outside the US following its acquisition of UBS SmartWealth, a UK digital advice platform.
The San Francisco-based robo will get access to SmartWealth’s technology and its team’s knowledge of UK banking and compliance. The deal will also give SigFig access to SmartWealth’s high-net-worth and ultra-high-net-worth clients in Switzerland, China and the US.
The challenge of complying with foreign regulatory regimes has kept other US robos from expanding into other markets, said Sean McDermott, senior analyst at Corporate Insight.
“SigFig may be able to move quickly into new markets because they have a strong support system in place with SmartWealth’s technology and team,” he said.
UBS, which launched SmartWealth in February 2017, must have realized it wasn’t a lucrative area for them, McDermott added. Furthermore, UBS has an equity stake in SigFig and wants to see the business succeed, he said.