Switzerland Lags Behind in Adopting Robo-Advisors, Investment Tech

Switzerland Lags Behind in Adopting Robo-Advisors, Investment Tech

by September 21, 2021

Swiss investors are lagging behind their European counterparts in embracing investment technology services. A new survey by Swiss banking technology provider Avaloq, which polled 1,430 investors across 10 countries in Europe and Asia, found that only 8% of Swiss respondents are investing via robo-advisory platforms, and 6% via crowdfunding platforms.

This is behind Germany, France and the UK, where 17%, 10% and 14% of investors, respectively, use robo-advisors. Adoption levels are also higher for crowdfunding platforms, with 23% of respondents in Germany, 24% in France and 14% in the UK stating that they use these platforms to invest.

Across all 10 markets, Asian investors were found to be the most open to investment tech, with 52% of respondents in China, 36% in Hong Kong, 23% in Singapore and 21% in India claiming that they use robo-advisors. Likewise, usage of crowdfunding platforms is also higher in these markets, with Hong Kong taking the lead (42%), followed by India (40%) and China (25%).


How do people invest- Robo-advisors, Avaloq, 2021

How do people invest: Robo-advisors, Avaloq, 2021

How do people invest: Crowdfunding platforms, Avaloq, 2021

How do people invest: Crowdfunding platforms, Avaloq, 2021

These findings indicate some reluctancy from Swiss investors when it comes to robo-advisors despite these services being much cheaper than traditional financial advisors and planners, which 18% of Swiss respondents indicated relying on.

A recent research conducted by Swiss online comparison service Moneyland.ch found that traditional banks can be more than twice as expensive as online asset managers and robo-advisors.

Examining the costs of Swiss wealth management in 2021, Moneyland.ch found that on average, traditional asset management clients pay around 1.37% per year for a portfolio of shares worth CHF 1 million, compared to an average of 0.62% per year for digital providers for a similar portfolio, with Findependent and True Wealth emerging as the cheapest services.

Investment trends and preferences

Looking at investment trends, the Avaloq study found that investors in a number of markets, including Switzerland, the UK and Japan, are investing to have enough money for retirement.

After retirement income (69%), Swiss investors named property investments (33%), future personal health care costs (32%) and funding their own entrepreneurial activities (25%) as the primary reasons why they invest.

Why do people invest, Avaloq, 2021

Why do people invest, Avaloq, 2021

Although the range of assets investors invest in varies from one country to another, a few are emerging as favorites, with publicly-traded stocks/equity, cash and investments funds often cited amongst a market’s top three preferred assets.

On cryptocurrencies, sentiment differs greatly from one market to another. Indians and Germans are the most open to the emerging asset class with 49% and 45% of respondents in these respective markets investing in cryptocurrencies. At the other end of the spectrum is Japan where only 11% of respondents indicated investing in cryptocurrencies. Swiss investors stands somewhat in the middle, with 25% of respondents investing in cryptocurrencies.

What do people invest in, Avaloq, 2021

What do people invest in, Avaloq, 2021

2021 has been the tipping point for the acceptance of cryptocurrencies and digital assets in Switzerland. A research by Zug-based investment company CV VC found that, this year, investors are entering the space at a rapid pace and that a number of large Swiss institutions are currently preparing for a digital asset offering out of public view, indicating that client demand has simply become too large to brush aside.

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