Investec has closed its robo-advice service Click and Invest after taking a hit of almost £20m in software costs and operating losses.
The shutdown is effective as of today.
Click and Invest made £12.8m loss in the year ending March 30, 2019, accounts show.
The company has also reported a £6m cost allocated for Click and Invest software this year.
In its annual report today, Investec says that running the service was at odds with its “commitment to manage costs and allocate capital effectively”.
The South-African wealth manager has written to Click and Invest clients outlining their options. If they opt out for having their investments moved to a different provider, the process will take place over the next 90 days.
Investec says: “Click and Invest launched just under two years ago, and we are extremely proud of the service we have provided and the consistently positive feedback we have received from clients.
“However, the reality has been that the appetite for investment services such as ours remains low and the market itself is growing at a much slower rate than expected.”
The company said it “remains committed developing its digital initiatives and will look to incorporate the technology into its offering”.