True Wealth reduces its fees
True Wealth has crossed the threshold of 5'000 clients and CHF 290 million assets under management. The company is now passing on these economies of scale to its clients and is cutting its fees for higher investment amounts. At the same time, the fintech has fully digitized the account opening process, making it possible to open an account completely online in less than 10 minutes.
Five Thousand Customers
As a pioneer in online wealth management, the Swiss fintech’s robo-advisory services offer a contemporary alternative for transparent, low-cost investing in Switzerland. The online wealth manager has now topped the 5'000 client mark for the first time and manages funds in excess of CHF 290 million entrusted to it by its clients.
Economies of scale and progressive digital transformation are cutting the unit costs of online wealth management. The company is passing on these savings by cutting the management fee for assets of CHF 500'000 or more under management. True Wealth CEO Felix Niederer: "We want to share our economies of scale with our clients. That’s why we’re going one step further and cutting the management fee from 0.5% to as little as 0.25%, depending on the amount invested!"
More than 600'000 individuals in Switzerland have taxable net assets of CHF 500'000 or more (Swiss Federal Statistical Office, Vermögen der natürlichen Personen 2016). Robo-advisory services are therefore becoming increasingly attractive to this client group.
More than ever, low fees are now a key factor in long-term performance and clients are increasingly aware of this. A visual presentation of how cost advantages can have a long-term impact on investment returns can be found here: radically lower costs.
Online account opening as a success factor
The company was faced with an unexpectedly large number of applications to open accounts in the wake of the COVID-19 pandemic. To cope with this rush, True Wealth fully digitalised the account opening process; now, thanks to AI technology, accounts for new clients can be opened completely online. CEO Felix Niederer: "One of our goals has always been to make the account opening process as simple as possible. However, we had to take a range of regulatory requirements into consideration. The effort has proven to be worthwhile, and we can now onboard new clients with Swiss mobile phone numbers in less than 10 minutes and provide them with a personal account for online wealth management. We are not aware at present of any other provider that can open FINMA-compliant investment accounts in just a few minutes without the need for a time-consuming video conference."
A previous version of this article was published on 06/04/2020