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For new robo advisers it is important to quickly build a broad customer and asset base in order to reach break even. Many advisers have a lean time to start with as a large number of clients with only modest investments don’t make for a sustainable business model.

With the flat rate offering, Clear Minds has an elegant answer to this problem. For clients with only small investments, Clear Minds is a relatively expensive option. However, from 100,000 francs and up, the offering becomes attractive, and further gains make it cheaper with compared with rival companies.

Target: Affluent and Rich Clients

With an aspect of self-responsibility in the shaping of the portfolio, research support and online advice, as well as the regular control of the portfolio quality, Clear Minds is able to offer affluent and rich clients the type of service otherwise only available at private banks.

At private banks however, the client is often only sold a standard portfolio tied to expensive advisory services. Clear Minds thus has a very specific target market in mind: those who pay banks a lot of money but don’t get much in return.

Banks Are Not Only Rivals

Schatzmann and his team don’t however see banks as their primary competitors, but rather as potential partners. «We are convinced our technology is also attractive as a white-label solution for asset managers or smaller banks. This allows them to digitize their advisory process,» said the head of Clear Minds. «This is also true because all the new regulatory requirements like Fidleg and Mifid2 add significantly to the complexity of the advisory business.»

Talks with potential banking partners have already taken place, according to Clear Minds. First priority of the startup however is to test the digital adviser with clients and to win their confidence.