Fintech World Forum London

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The economic environment continues to bring great uncertainty. Regulatory requirements are evolving, while customers are demanding greater personalisation combined with excellent customer service. In addition, technological innovation is challenging traditional business and delivery models and at the same time leading to another series of demanding competitors. The example of the Swiss private bank Vontobel shows how modern software can be used to maintain or expand a strong position as a bank or financial services provider in Europe despite these challenging conditions. By using the right software platform to create a transformation process for automating and digitising financial investments. In the case of Vontobel, the focus was specifically on digital discretionary portfolio management. Our presentation showed how technology enables financial institutions to offer digital "value-added services" (e.g. monitoring, timeline services, etc.) in client segments that have not experienced this before.

In the UK an impact of these conditions is what many refer to as the 'advice gap'. It inevitably arose because many banks and financial advisors no longer offer services to people with less than £100,000 investment volume. The core argument is that within the current climate the cost of looking after these clients has simply become too high.

With increasing regulatory requirements, the minimum investment volume has therefore risen because advisors are confronted with higher costs. As a result, a large part of the population with smaller investment volumes has no access to qualified financial advice. In the UK, an advisor now has to serve 2,700 clients.

This is precisely the "Advice gap" that was the subject of our lecture in London. We were able to show that with the aixigo software platform this gap can be closed efficiently with technology.

aixigo uses its digital API wealth management and investment advisory platform as the basis for financial institutions to be able to offer digital value-added services in the branch and via mobile devices, including voice interfaces, in an attractive and cost-efficient manner. Over 100 API-based services are currently available. The API can provide large amounts of data as raw material for legacy systems and refine them quickly and flexibly on a large scale. This makes information more accessible for customer systems - regardless of which core banking system forms the basis.

For the provision of digital banking services, speed, mass suitability and flexibility are becoming increasingly important. This is particularly true for the areas of wealth management and investment advice. Why? Because in the digital age, the attention span of clients continues to decline. So the goal must be to get at least two minutes of attention from the client every day. You can only achieve this if you can offer relevant information extremely quickly, digitally and attractively. In the end, the banks will also benefit greatly from this. You meet customer expectations in the digital age and at the same time reduce costs per customer, despite the increased expectations of a real customer experience. This in turn means that customers are more willing to pay despite regulatory requirements and cost transparency. At the end of the day, the goal is for the bank to become an integral part of a customer’s daily digital habits.

In concrete terms: The Vontobel case

With their product Vontobel Volt, Vontobel is the first Swiss wealth manager to offer its wealthy clients the investment expertise of an active global wealth manager in digital form. In addition to classic active discretionary portfolio management, Volt makes Vontobel's comprehensive service promise available and tangible in a new contemporary way. In the future, Vontobel clients will be able to invest in actively managed financial assets on their smartphones via the new Volt app, which is easy to use and allows them to individually shape their personal portfolio.

Like traditional wealth management clients, Vontobel Volt clients can invest on the basis of Vontobel's proven 3α investment philosophy. The 3α investment philosophy is based on the conviction that active management can create added value. The cornerstones of this philosophy are broad diversification, medium- and long-term investments in investment themes developed by Vontobel experts and the exploitation of short-term market opportunities through selected individual securities. With the help of the investment themes, Vontobel clients can set individual investment priorities. In line with the 3α investment philosophy, Volt clients can invest in a globally diversified portfolio based on their personal risk profile.

Vontobel Volt keeps clients up-to-date on market events, new attractive investment themes and changes in their portfolios. In addition, Volt provides full transparency about the individual investment products and their performance at all times.

A new digital risk management and risk monitoring system developed by Vontobel is used to monitor portfolio risk. Vontobel's experts are able to make portfolio adjustments at any time according to the respective market situation. Vontobel stands by the quality promise and stability of an established Swiss wealth manager for the settlement of transactions and the safekeeping of assets.

With Volt, clients benefit from a digital offering that combines the expertise and solidity of one of Switzerland's leading wealth managers with the user experience and customisation options of a modern digital offering.

In addition, Vontobel also offers the Digital Investment Solution Platform on which Volt is based, with its investment and technology expertise, to other financial service providers who are looking for a comprehensive Swiss alternative with leading content and technology.

Raiffeisen Switzerland will be the first partner to offer its own digital discretionary portfolio management solution based on Vontobel's Digital Investment Solution Platform, which is tailored specifically to the needs of more than 3.5 million Raiffeisen customers and Swiss retail customers with smaller assets. In the future, they will be able to invest digitally in a broadly diversified investment portfolio tailored to their individual risk profile. In addition, customers will have the opportunity to set their own priorities. The offering is to be launched in spring 2020.

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