Software for Wealth Management

With the flexible, highly scalable and fastest on the market wealth management software, all discretionary portfolio management business models are possible from personal management of HNWIs, retail business or the robo advisor.

For the wealth manager, the wealth management software is a tool for efficient and flexible wealth management. In addition to impressively simple and efficient component management, full overview and control options for the automated process flows, the reporting of the financial software provides content that delivers real added value for the client and contributes to an all-round positive client experience. Experience that digital wealth management with financial software is not just hype,  but offers a real business advantage

Wealth Management Software Modules – Capabilities

aixigo's modules for wealth management software are extremely versatile. They are suitable for use in discretionary portfolio management (DPM) as well as for robo advisor software due to the automation options. See for yourself the capabilities of our software modules in the wealth management product area.

Business Process Automation

Within the wealth management software, discretionary portfolio management can be operated fully automatically using business process automation. It makes it possible to model all required system functionalities as business processes using the BPMN specification language and to connect banking systems to the business process.

In such an automated process, process steps that have to be handled manually, such as checking or execution orders, can also be integrated.

Orders are always generated by the wealth management software on the basis of a specific event, such as the necessity to rebalance due to target-actual deviations within the portfolio, a component adjustment, a withdrawal request or the liquidation of a portfolio. Reasoning ensures that every transaction executed in a portfolio is justified in order to comply with legal requirements and at the same time meet the transparency requirements of the client. 

On the basis of the events, there is the possibility of a manual examination of individual portfolios with subsequent acceptance or rejection of the orders. The system carries out a series of sanity checks and points out portfolios with potential processing errors and anomalies in relation to the current event. The event, associated orders, affected portfolios and execution decisions are archived for traceability at all times. A CSV export is available from the system for external verification or for further use.

The event control provides information on all upcoming events and orders to be generated, chronologically keeping the events in a processing queue and also displaying the current status, e.g. when processing is stopped due to anomalies.

Our digital wealth management software offers information functionalities both for the checking of automated operations and for business segment analysis. It allows a view of the system processes with their events and orders generated from them, while also allowing a view of content issues, such as where customers are invested or which components are important.

In addition, a test mode is available to check the expected generation of orders from the rebalancing algorithm. Since rebalancing can optimise an extraordinarily large number of portfolios, the test mode is particularly useful after changes have been made to the system configuration. Orders generated within the test mode are not transmitted to the bank's order system so that the customer portfolios are not changed. The analysis functionalities are fully available in test mode.

Component Conception

Components are the basis for highly flexible and efficient wealth management. The wealth management software allows a variable composition and thus free definition of the granularity of an investment component. Components can be composed of individual specific securities or several securities. The actual product universe, which is available for the component concept, can either be defined in the wealth management software itself or made known via an interface.

Components and model portfolios can be provided freely with descriptive properties via so-called tags, which greatly facilitate both the component concept and the subsequent composition of the client portfolios. 

A slim and easy-to-use user interface is available in aixigo's wealth management software for the creation, maintenance, administration and analysis of component concepts.

Archiving ensures that components that were used productively in the past and are now inactive remain permanently visible.

Component Assembly

Components defined in digital wealth management can easily be combined into individualised client portfolios using our financial software. This can be done manually by the wealth manager, semi-automatically by system proposals with the subsequent post-processing by the wealth manager or fully automated. This can also be used for a very large number of portfolios.

With the automated component assembly for a client portfolio, digital discretionary portfolio management independently ensures that both legal restrictions and client specifications and preferences are adhered to. The algorithms used combine all available information and create the client portfolio on the basis of the investment guideline, the investor's profile, the component structure or allocation or from other generally or individually defined thresholds.

For manual assembly, the wealth management software offers support in selecting components in the product finder and in evaluating quality features in the form of warnings in the event of restriction breaches.

The rebalancing algorithm then ensures that deviations from the target status of the portfolio are regularly eliminated by reallocations or submits appropriate recommendations to the wealth manager. Based on a target-actual deviation, the wealth manager determines the necessary transactions in order to reallocate the portfolio in such a way that all restrictions and specifications are complied with again. Whole components or positions from components that are currently overweighted are therefore identified as for sale on a pro rata basis. From the proceeds generated or with the inclusion of liquid funds, components or positions are determined for the subsequent purchase whose proportion is currently underweighted. The liquidity adjustment algorithm, which controls the correct implementation of capital withdrawals and capital injections, uses the same methodology.

Guideline Management

In wealth management, Guideline Management is responsible for both the inclusion and monitoring of compliance measures with all restrictions and requirements for client portfolios. It identifies relevant deviations or breaches by comparing the target and actual status of the portfolio and provides the relevant information for other wealth management modules, e.g. to initiate or propose rebalancing or to generate a report. Monitoring can be performed for selected or all client portfolios and is fully automated, either on an as-needed or a time-controlled basis.

In the investment guideline of the wealth management software, both client specifications and legal restrictions which must be taken into account in the management of client assets are recorded. These include structural specifications such as minimum and maximum asset class proportions, selected themes or components, targeted maximum risk, individual loss thresholds or the investment strategy. It can also be used to store quality indicators defined by the wealth manager to be considered for the client or specific portfolios.

The maintenance and administration of the investment guidelines is easy via the user interface. Each guideline has a status that distinguishes the current investment guidelines from those that have already been archived or pending. In this way, even retrospective decisions remain transparent and comprehensible.

According to legal guidelines, the suitability for the target market must be tested for each product. The definition of the target market accordingly asks for customer type, knowledge and experience, loss-bearing capacity, risk tolerance as well as customer goals and needs. The target values for the comparison can be provided by system functionalities such as the investor's profile or obtained from external systems.

The allocation deviation is used to determine the condition of a customer portfolio with regard to the difference between the target and actual composition. The target is defined by the component concept. Pending transactions from orders or payment orders can be taken into account in the comparison.

Threshold value monitoring is generally used to monitor customer-specific or generally predefined threshold values, for example for losses, on key figures from portfolio analysis, but also from investment guidelines. Monitoring can be performed flexibly for all or a selection of portfolios on a regular, event or ad hoc basis using the wealth management software.

Order Handling

The preparation and coordination of orders arising from wealth management mandates takes place in the order handling module - the order processing area of aixigo's wealth management software.

Buy and sell orders resulting from rebalancing or manual entries are combined through order netting. In this process, orders from different components can cancel each other out if necessary. The wealth management software ensures that the holdings of a security per component are correctly balanced and that only the net surplus is sold or the net additional requirement is purchased.

In block order creation, orders for the same security from different customer portfolios are combined. Sales and purchases are separeted and passed on for joint execution in order to ensure the equal treatment of all invested customers. If available, the Bank's fractional security account is included to ensure tradable units for orders. Both sales from and purchases into the fractional security account are made.

In the order blotter, open positions are temporarily managed until the next processing. After the orders have been transferred to external systems, the order blotter manages the order status and makes this information available to other modules of the financial software so that, for example, a complete picture can be displayed of all holdings and outstanding orders in a portfolio.

Process control coordinates the processing of orders. On the one hand it can ensure that the correct sequence for processing the orders (e.g. first sales, then purchases or sales and purchases simultaneously) is adhered to, on the other hand it controls the execution, i.e. the time of forwarding to external systems. This can be done at regular intervals or at specified times. The transaction-safe and rapid processing of order updates is guaranteed by the process control.

Wealth Management Reporting

The reporting module of the wealth management software generates all necessary reports. Due to the scalability of the reporting functionalities, it can even be used for the automated generation of masses of reports within a short period of time. Reports can also be created ad hoc, e.g. at the client's request.

The configuration functionalities of the wealth management reporting module allow maximum flexibility with regard to the customer-specific and efficient preparation of content. Our digital wealth management software works with placeholders for texts, which can be designed in a variety of ways depending on the type of client to be addressed. If desired, we can adapt the reporting design to your corporate identity.

In addition, the event- and time-controlled generation of reports can be initiated via the configuration. This includes regular reports such as a quarterly report, a cost report or a report on the risk development of the client portfolio - as well as reports that are generated when certain events occur, such as ex-ante cost information for an investment on the basis of the investment guideline, a report on breaching the legal or individual loss threshold, a statement of suitability or a customer greeting.

Reports can be made available in the form of raw data and processed electronically in the timeline or by external systems. It can also be generated directly in the output format for the customer, e.g. as a PDF for printing or delivery to the customer's mailbox.

Wealth Management Onboarding

The Become-a-customer phase in wealth management is characterised by getting to know potential clients in terms of their objectives, needs and financial situation, as well as knowledge and experience, and thus their individual risk and loss bearing capacity. These client characteristics play a decisive role in determining in which financial instruments a client can and should ideally be invested.

For this onboarding, our wealth management software offers the opportunity to create a profile that provides all the necessary information.  

Learn more about our other software solutions and our base modules