UBS Group scrapped its planned $1.4bn purchase of Wealthfront on 2 September, in a setback to the Swiss bank’s plans to grow in the US in online wealth advice.

UBS, one of the world’s largest wealth managers by assets, struck the deal in January before technology company valuations plummeted in a market selloff. Bank executives billed it as a way to reach younger investors who prefer to manage their money through online applications instead of sitting down with an adviser. They said UBS could tap into Wealthfront’s user-friendly technology to build other digital services, amid an arms race for money managers and banks to improve customer experiences.