The news: UBS’ planned $1.4 billion takeover of US robo-adviser Wealthfront has fallen through, and will impact its plans for digital expansion and growth in the US.
What are the downsides?
Are there any positives?
The big takeaway: UBS’ original plans to use Wealthfront to expand in the US and give it access to a large pool of younger customers made sense. The news that it’s abandoned this strategy could be a sign that it wants to pursue these goals through a different means or that it’s put plans on hold, as it reacts to bleaker market realities. Other major lenders may also reassess expansion plans in response to a harsher outlook.