Roboadvisor 2.0 – Gartner Hype Cycle features aixigo as a representative vendor

Roboadvisor 2.0

In its new "Hype Cycle for Digital Banking Transformation", Gartner recommends aixigo as a representative provider for the Roboadvisor 2.0 technology. In the following, we have therefore summarised some key information about Gartner's Hype Cycle, the Roboadvisor 2.0 technology as well as about aixigo's offerings in this segment.

In the financial industry, technological innovations play a decisive role as they "are driving bank and nonbank competitor activity, influencing customer demand for product and services, and shaping regulators’ actions globally", according to the latest Gartner Hype Cycle. That said, which of these technical innovations are just a hype that might pass, and which ones really have a long-term impact? Introduced in 1995, the Gartner Hype Cycle describes the attention paid to new technologies over time and evaluates the extent to which a technology will prevail and how it has matured so far. Following the concept of the Hype Cycle, technologies undergo five phases of attention, beginning with an "innovation trigger" and moving forward until the "plateau of productivity".

Roboadvisors 2.0

The 2021 "Hype Cycle for Digital Banking Transformation" focuses on technologies that will shape the banking industry through the next five years, such as Roboadvisors 2.0, which are already in the adolescence phase and slowly sliding into the "trough of disillusionment". The capabilities of the technology as well as the process understanding are quite mature – with second-generation products already emerging and the application of the technology no longer being limited to early adopters. The time to reach the productivity plateau, i.e. mainstream adoption, is therefore estimated at two to five years.

According to Gartner, Roboadvisors 2.0 are collaborative, automated, digital financial tools which use algorithms to perform advanced investment management and financial planning functions. Compared to traditional Roboadvisors, they use a more hybrid approach to digital advice as they enable flexible input from the customer and provider side. They permit to take larger amounts of customer data into account to create an individual portfolio structure and the customer can flexibly adjust his investment goals according to his life situation. The adviser can respond to this, for example, with a rebalancing or by offering further coaching.

In its Hype Cycle, Gartner sets out specific recommendations for wealth management CIOs. Among those recommendations, Gartner also specifies solution providers in this segment. One of them is aixigo.

It is aixigo's mission to design solutions that meet the needs of tomorrow and are successful in the long term. With a commitment to longevity and flexibility, aixigo has designed a wealth management platform based on microservice technology that not only guarantees a flexible offering, but also enables Roboadvisor 2.0 solutions. As the wealth management platform is based on flexible API technology, aixigo's solutions can be easily integrated into any existing infrastructure. In addition, aixigo's platform architecture ensures that existing services can be successively expanded at any time. Beyond that, aixigo also offers professional services for all those who are interested to get an idea of or to conceptualise a customised solution. Based on our long-standing experience, we can point out a variety of ideas or illustrate what solutions we have come up with together with other customers. One of these solutions is Vontobel Volt®, which was co-created with Vontobel.

Vontobel Volt®

aixigo und Vontobel recognised early on that stand-alone Roboadvisors have difficulties in operating profitably as customers miss the personal component. Even though automation and digital investment opportunities are a necessity, customers still want to see their personal preferences reflected in the portfolio as well as being able to interact with a personal contact person. That's why Volt®, a hybrid solution that combines the best of both worlds – automated and regulatory-compliant processes and personalised investment services with humanity – was launched in 2019.

Volt® is a communication and service channel in one. Unlike traditional Roboadvisors, Volt® offers the possibility to proactively address customers with individualised investment opportunities – based on their individual preferences. Customers remain completely autonomous and can make independent decisions through digital access in line with their personal preferences. Moreover, the customer benefits from a transparent overview of the status of his assets at any time and is provided with curated information through the timeline – an individualised newsfeed. Once the customer has decided on an investment, the asset manager regularly provides curated content to keep the customer comprehensively informed about current developments in the relevant market. Through Volt®, the expectation of anticipatory and proactive advisory services can be fulfilled in a convincing form via digital channels.

If you would like to learn more about the added value of the hybrid concept "Volt®", we invite you to visit our Success Story and to watch our interviews with Christian Gmünder, Head of Private Client Operations & Services at Vontobel.

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