Profitability of Wealth Managers vs. market volume
The factors of advice
The value chain of financial advice
“Digital Investment Management with Personal Coaching”
One Engine to empower human advice
100% compliance with all investment restrictions
…<1 second processing time for portfolio rebalancing
…20% extra time of advisors or portfolio managers
For more information contact us (office@fincite.de) or visit our website: www.fincite.de
Lundin Gold April 2024 Corporate Presentation v4.pdf
Tech in finance. robo vs. human advice. digital wealth management by Fincite. slideshare.
1. 1
Tech in finance: Robo
vs. human advice
Frankfurt School, 08.03.2019
Andreas von Hirschhausen
2. 2
“Every Industry that does not
contain scarce resources in its
creation will tend towards 0
marginal cost” by Jeremy Rifkin
3. 3
Index: Profitability of Wealth Managers vs. market volume,
2000-2020 (Deloitte Monitor)
AuM
Profitability
The Innovation Gap:
Profitability of Wealth
Managers vs. market
volume
5. 5
The complexity of wealth
Cash &
Currencies
Invest-
ments
Real
Estate
Pensions Insurance Altern.
Invests
Others
6. 6
The factors of advice
1. The current financial situation
2. His vision of life / objectives
3. His psychological profile
4. Patterns from people similar
5. His preferences / beliefs
1. Access to products
2. The right asset allocation
3. Continuous risk monitoring
and stress testing
THE CLIENTS PROFILE
THE INVESTMENT STRATEGY
1. Value adding information
(Research linked to Portfolio)
2. “Private automated family
offices“
THE INVESTMENT STRATEGY
7. 7
The value chain of financial advice
ONBOARD
GATHER
DATA
BUILD
PROFILES
IDENTIFY
GOALS
SELECT
PRODUCTS
ALLOCATE
MONEY
READJUST
KYC
AML
Com-
pliance
Account
aggregation
Asset
aggregation
Income /
Expenses
Future
Incomes
Financial
Goals
Risk
tolerance
Risk-bearing
Capacity
Financial
Future
Time horizon
Purpose
Investment
targets
Mutual Funds
& ETFs
Family
Situation
Single
Instruments
Insurances &
Pensions
Investment
Trends
Alternative
Investments
Matching
Profile
Matching
Goals
Matching
aggr. Asset
Matching
fam. Sit.
Optimized for
Tax
Portfolio
Rebalancing
Goals
Change of
Assets
Change of
Markets
Change In
situation
12. 12
3.8bn €
Total AuM in Germany
in 2018
25
Number of Robo
Advisors in Germany in
2018
1/3
Market share of
Scalable Capital in
2018
Some stats on Robo Advice
Source: Deutsche Bank Research; Germany Monitor; German robo-advisors
13. 13
ROBOS ARE NOT AS CHEAP
AS YOU THINK…THINK
CUSTOMER ACQUISITION
COSTS
17. 17
…100% compliance with all investment
restrictions
…<1 second processing time for portfolio
rebalancing
…20% extra time of advisors or portfolio
managers
One Engine to empower human advice
By using an automation
engine, that does all the
background work for the
advisor, a bank…
18. 18
Input Processing Output
Fincite Database
Core
Banking
file
FX
Rates
Bank
Rules
Client Portfolio
Constraints
Fincite Rebalancing Engine
Rebalanced Portfolio
Analytics
Rationales
Warnings
Asset
Allocations
Model
Portfolios
Rec.
Products
CIO
One Engine to rule them all