With the decision by Scalable Capital to close down its service, the decline of robo-advisers has reached a new level in Switzerland. But, the development of such services has only just begun, argues fintech pioneer Adriano Lucatelli in an interview with finews.com.


Three robo-advisers have already closed shop this year so far – Scalable Capital, Elvia E-Invest and Investomat. Are you at all concerned as the founder of Descartes Finance digital wealth manager?

No. Not really. It just proves the difference between business projects launched by entrepreneurs and established for the long run and the more financial investments of established finance companies where a prompt return on investment is at the forefront of considerations.

Investomat and Elvia E-Invest were closed down because the demand for its services was too small. Isn’t there enough demand for such services in Switzerland?

Switzerland isn’t yet ready for a pure digital service.  Which is why we also provide personal advice.

«Robo-advisers are not expensive compared with the established providers»

Earlier or later, digital wealth management will however prevail. As is often the case, the impact of technologies is overestimated in the short term, but underestimated in the long term.

Scalable Capital explained its decision to close the service down with reference to the new Swiss financial regulation (Finia and Finsa). Is Swiss regulation hostile to robo-advisers?

Not at all. The new regulatory regime is technology-neutral and applies to all wealth managers.

Currently, crypto- and Blockchain-projects are all the rage. Is the diversion of attention one of the reasons why robo advisers are dying?

Not a reason, but robos for sure receive much less attention compared with before the crypto-hype. Digitization of wealth management currently is flying under the radar of public attention.

Critics also say that robo-advisers are too expensive. Are investors only concerned about the price?

The services offered by robo-advisers in Switzerland are not expensive compared with the established providers on Bahnhofstrasse. Quite the contrary. But yes, investors increasingly are looking for inexpensive solutions.

Several robo-advisers started out with the aim to acquire billions of francs in assets, which proved unrealistic as a target. How much time does a robo-adviser need for the breakthrough?

As with any startup, you ought to work with a five-year perspective. Building a strong brand in wealth management won’t happen overnight.

«We have paid for everything ourselves, without the help of external investors»

You need to be patient. People only buy services from companies they trust.

Descartes Finance is the only properly independent provider in Switzerland and has more room for manoeuvre. How is the company doing in terms of assets under management and partners?

Out of principal, as a closely held firm we don’t provide figures for assets under management. And we are still financed by bootstrap. Which means that we paid for everything ourselves, without the help of any external investor. Our product partners and custodial banks are not invested in our company. The independence gives us a range of options. The pipeline of new portfolios and products is well filled.

Are you ever thinking of giving up?

No. The journey has only just begun. But we will remain parsimonious and efficient in the way we perform our business.


Adriano B. Lucatelli is a Swiss businessman, lecturer at University of Zurich and co-founder of Descartes Finance, an independent robo-adviser. He studied economics and international relations at University of Nevada (BA) and at the London School of Economics (MSc). He wrote a PhD at University of Zurich on the global financial market supervision. He started his professional career in 1994 at Credit Suisse and later at UBS, where he worked in various managerial positions both in Switzerland and abroad.