aixigo builds robo advisor

The online investment decision maker belongs to the Robo Advisor category and includes automated support for investment decisions. aixigo has been developing consulting and support software for financial service providers in Europe for over 15 years.

The core of the Robo Advisors consists of quickly and uncomplicatedly filtering suitable investments out of the abundance of possible investments on the basis of a simple investor profile. Is a classic investment fund the right form of investment? Or is it an exchange-traded fund? The investment planner helps to select the right investment product from the multitude of funds on the market: well-founded, independent and not tied to in-house products. In this way, clients receive results that match their chosen investor profile.

Simple parameters such as the investment objective, the amount to be invested, the investment duration and the desired risk are queried. The risk speedometer displayed on the website visually supports the investor's selection decision once again.

Detailed product information is also available during the process. By clicking on the order button, the customer can conclude the process with a transaction. Alternatively, the customer can use the preselected data for an optimally prepared consultation in the branch. The purpose of the online investment decision maker is to offer the customer the opportunity to make investment decisions independently and to be supported by a suitable procedure.

Disruptive or evolutionary? - This much is clear: financial services and financial service providers will evolve.

These changes will be driven by two mega-trends: namely that of digitalization brought about by technological progress; and increasing regulation as a result of crises and their resulting loss of trust. FinTechs quickly make use of these trends and create concepts that, in the eyes of many clients, are superior to traditional products available today.

One of these concepts revolves around the robo advisor, an automated assistant for investment decisions. A robo advisor provides the client with the possibility to make investment decisions on his or her own, basing those decisions on appropriate processes. The gap between full-fledged client advisory and the completely autonomous decision making of the experienced investor is thereby closed. In the U.S., the leading platforms have amassed over US$5 billion in client funds in the span of four years. Similarly, in Germany, Switzerland and Austria, the first platforms have caught the eyes of investors and raised funds in the hundreds of millions.

There are several reasons behind this success. First and foremost is the strong focus on client needs as well as costs, but also the possibility for smaller investors to receive sensible and diversified portfolio recommendations. The principle behind the robo advisor is well-suited not just for the up and coming market players. Recent history out of the U.S. has shown that also the established players can adapt the concept to their own platforms. Charles Schwab, the largest online broker in the U.S., quickly surpassed the one billion dollar threshold in funds under management. The cost advantages of the robo advisor are an interesting proposition not just for clients. For smaller accounts, an autonomous investor is an attractive business model for both client and bank, as it lowers regulatory costs.

Investment advice for the masses will continue to be available in this fashion. In a study by business consulting firm A.T.Kearney, experts show that robo advisors will win substantial market share in just a few years time. This will take place not just through their deployment in FinTech companies, but also as much through their integration in the business models of “traditional” financial services providers.

aixigo assists you in setting up your robo advisor – not just through its many years of expertise as a pioneer in the field of user experience and web behavioral steering, but also with its comprehensive catalog of components. From these components it is possible to put together and quickly deliver a robo advisor that meets your needs and expectations. The catalog can support you in the most diverse of aspects with respect to risk profiling, asset allocation, and channels. Our first clients already have their first product successfully up and running online.

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