April 26, 2017

Digital Investment Advisory (“Robo-Advisory”)

A robo-advisor is a digital wealth management service that provides automated, technology-augmented and algorithm-based portfolio management services.  Robo Advisory is one of the hottest topics in FinTech innovation. It aims at a fully digital user-friendly, automated and transparent user experience for investing.

Initially emerging as a disruptive start-up technology, this new form of digital investment advice is about to become a key service component of private banks, retail banks, wealth managers and advisors. because of their potential to reduce costs, increase efficiency, and improve the client relationship.

In the years ahead, Robo Advisory will change the landscape of asset and wealth management profoundly.
We are convinced that now is the right time to get involved, manage this change and gain an edge.

We help banks, wealth managers and other financial intermediaries create or enhance their own digital wealth management platform. We are highly flexible and can suggest different modules per your specific needs.

Robo-advisory strategy

We help you define your desired robo-advisor business model (digital, hybrid, etc) and share our deep knowledge about this market and the expected development in the coming years. We can provide you with in-depth market analysis.

Automated Investment Methodologies

We will discuss with you the different options to enhance your digital wealth management capabilities. We have strong expertise in the different options that exist.

The most common models used are:
– Modern Portfolio Theory
– Black Litterman
– Constant Propertion Portfolio Insurance

We have a deep understanding of each model and its pros and cons and can implement the desired solution.  We can help guide your team in implementing the solution that fits your needs.  Our flexible API can connect with your back office and core systems.

We can generate optimal client portfolios that meet your allocation criteria and define the rebalancing needs based on our internal model.

Risk profiling/Client Onboarding

Risk profiling and profiling algorithms are complex and financial services is a highly regulated environment. We can take care of the creation of a regulatory compliant automated flow and methodology.

We also have strong experience in creating an enhanced client experience that will increase conversions.

We offer solutions for:

Retail banks

Retail banks are sitting on enormous assets of untapped potential. A large and growing part of the clients are open to online wealth management. Without such a solution, retail banks risk erosion of their customer base to competitors.

Online brokers

Online brokers face increased competition. There is little differentiation in offerings and margins are diminishing. The traditional trading focus limits the percentage of clients available. Reliance on transaction revenues makes income streams volatile.

Robo-advisor solutions widens the product offer, extends the potential client base, increase margins and offers more stable revenues.

Private banks

Private banks are faced with fee pressure, heavy competition and aging clients. When wealth is passed on to the next generation, there is a risk of client loss if the bank cannot a solution for lower portfolio size.

Finwise can propose pre-constructed model portfolios that can free up valuable advisor time and allow them to concentrate on the highest value added activities such as fiscal and estate planning

Independent Wealth Managers

Family offices and financial advisors dealing with HNW clients face increasing challenges attracting assets. Greater digital engagement is requested by younger clients. These clients are increasingly cost aware and unwilling to pay for ordinary products.

})