Wealthsimple exits UK

ended 06. December 2021

This morning, Wealthsimple announced that it it withdrawing from what has become a near saturated investment and money app market. Got any quick views on this? What is the message for consumers/investors? Do your duedil and don't put all your eggs in one basket? Deadline is tight.

4 responses from the Newspage community

Star Quote
"The difference between setting up an app-based investment service and full financial advice couldn't be larger and the general public is clearly waking up to this. Finance can be scary and intimidating and people can and will make mistakes. That's unfortunate but there is no substitute for a real person to talk through your situation and help you. Yes, of course it costs more, but what price do you put on peace of mind and long-term wealth building?"
"Some of these apps are a great way to get people started with investing, especially when they are only looking at small amounts and their affairs are relatively simple. However, there really is no substitute for face-to-face, highly qualified and regulated financial advice. Having your own financial planner, who really understands you, listens to what you say (and to the things you are not saying) is priceless, and you cannot get that from an app."
"The robo-advice market is currently saturated in the UK and competition for would-be investors' business is fierce, so it's no surprise to see Wealthsimple exiting the UK market. Unless you've got your full focus on the UK, it's going to be hard to cut it, and I would expect Wealthsimple to be followed by others in the coming weeks and months, as the pecking order is more firmly established. Investors should do their research before committing funds and only invest with providers who have a UK-backed business or strong footprint in the UK to avoid getting caught in the inevitable fall-out."
Ross Boyd
CEO at Dashly.com
Consumer choice has won out when it comes to driving demand for tech-enabled savings apps, which have entered and achieved market penetration. However, underpinning this demand is the complexity of modern life, and that can't be serviced by technology alone. Fintech will be well-served if it remembers the importance of this complexity, and the advice it demands. Success in this next wave will likely be