UBS is ending its digital offering for British wealth management clients, Smartwealth, after just 18 months, according to a memo seen by finews.com. 

«While we were satisfied with the commercial progress, at this time we believe the near-term potential is limited and have therefore decided to close our digital-only offering in the U.K.,» Eva Lindholm, private bank head in the U.K., and Reto Wangler, operating chief of the wider wealth unit, wrote in a memo to staff.

Commercially Viable?

The Swiss bank will sell Smartwealth's intellectual property to San Francisco-based Sigfig, which UBS had developed another U.S.-based digital tool together with. The bank also holds a stake in the American fintech firm. 

«We believe the decision serves the best interests of the business and will allow us to invest further in other client-facing improvements», Lindholm and Wangler said. The bank has never disclosed Smartwealth's assets under management.

UBS' argument that it reached commercial success with Smartwealth can be questioned: former private bank head Juerg Zeltner last year admitted that while Smartwealth's offering was good and UBS was happy with the effort, the bank needed to reach customers better. A good portion of the start-up's clients are apparently UBS staffers in Britain.