For years, financial institutions have sought ways to make true financial advice available online. But did they find a way to satisfy their more independent customers? We will talk about the ways in which digital technology is transforming the way we market (and receive) financial advisory services. Take a peek at projects from our research labs. One features a room designed in a joint effort with the University of Applied Sciences in Darmstadt, Germany: It provides a digitally enhanced advisor-client conversation, using a multitouch table and a screen wall. The other is seeking to grant investors more control in a more integrated process by creating a platform for both, advisors and investors. Will digital technologies – one day – create the category killer for personal financial advising or take it to the next level.

1. MY FINANCIAL ADVISOR IS
AN ALGORITHM

2. What we are going to talk about
Three different models for
financial advisory
! My financial advisor has an
algorithm
! My algorithm has some
financial advisors
! My financial advisor is an
algorithm

3. Where it's at: Clients
LESS TRUST, MORE
AUTONOMY

4. Guilty by association
It's the stupid economy
http://flic.kr/p/bhuqvr

5. Whom do you trust in financial matters?
Source: Million Dollar Round Table, Financial Harmony Study 2011

6. Whom do they trust in financial matters?
Source: Million Dollar Round Table, Financial Harmony Study 2011

7. Democratization of Information
We became our own travel
agents, insurance brokers, now
we are learning to use our cell WHY DO WE STILL
phones to triage our own bodies.
NEED FINANCIAL
ADVISORS?

8. The process of financial advisory

9. Finances are serious and complex.
A solid financial plan is not a
BECAUSE IT'S matter of drag and drop.
COMPLICATED

10. Model 1
PERSONAL ADVISORY ON
INTERFACE STEROIDS

11. Model 1
! I am digital.
! I tend to procrastinate
financial planning.
MY FINANCIAL
ADVISOR IS HAS AN
ALGORITHM

12. Our Research Project
It’s digitally enhanced.
A ROOM FOR And face to face.
BETTER FINANCIAL
ADVISORY

13. Question 1
A room that supports attitudes
WHAT MAKES AN like
! confidence
! privacy
ATTRACTIVE ROOM? ! curiosity

14. Architecture & Interior
KONZEPTIDEEN ÜBERSICHT
Konzept_01_Idee Inselprinzip Konzept_01_Idee Konus Drehtür Konzept Sphäre_rund_Eingang 1 Konzept Rundsphäre_Wall Konzept_01_Ideename Konzept_01_Idee Deckel Konzept_01_Idee Sauna Konzept_01_Idee Schachtel Konzept_01_Idee Holzlamelle/ Textil- Glas
KABINE
(geschlossener
Raum)
Konzept Raummöbel_Rahmen_klein Konzept Raummöbel_integrativ Konzept_Glocke_Ring_klein Konzept Raummöbel_Rahmen_integrativ Konzept Raummöbel_Rahmen_integrativ Konzept Raummöbel_integrativ Konzept Raummöbel_Rahmen_integrativ Konzept_Glocke_Ring Konzept Raummöbel_Rahmen_klein Konzept Raummöbel_Gestell Konzept Raummöbel_Rahmen_groß Konzept Raummöbel_Rahmen_Module Konzept Raummöbel_Rahmen Konzept Raummöbel_Rahmen_Varianten
RAHMEN
(Bauklotzsystem
fest)
Konzept_Raummöbel_Thron/ Halbei Konzept_01_Idee Wohnsessel
Konzept_01_Idee Faltmöbel Konzept_01_Idee Steckplatte Konzept Sphäre_rund_Modul Konzept_Sphäre_Facetten Konzept_01_Idee Babybel Sessel Konzept_01_Idee Wandmöbel 02 Konzept_01_Wandmöbel 01 Konzept Raummöbel_faltbar_groß Konzept Raummöbel_faltbar_klein Konzept_Raummöbel_Faltung Konzept_Raummöbel_Rahmen_Textil Konzept_01_Idee strechbare Wand Konzept_Raummöbel_Rahmen_Textil
EINZELTEILE
(System frei)
Konzept_01_Idee Lampe 02 Konzept Sphäre_schwebend Konzept Sphäre_rund_schwebend Konzept Sphäre_eckig_Holz Konzept Sphäre_rund_schwebend
BAND
Konzept_Raummöbel_umwickelt Konzept_Trolley Konzept_01_Idee Traverse Konzept_Trolley_Auffalten Konzept_Raummöbel_Scheibe Konzept_Markise Konzept_01_xxx Konzept_01_xxx Konzept_gefalteter Tisch Konzept_Drehmarkise Konzept_Picknickbank Konzept_falbarer Monitor
MÖBEL
(freistehend)
Konzept_01_Idee Lampe 01 Konzept Sphäre_rund_Glocke
DECKEL
WE CLASSIFIED
Konzept_01_Idee Kürbis Konzept_01_Idee Perle
BLASE
Konzept Sphäre_rund_Innenring
RAUM IN RAUM
FÄCHER
KONFERENZ
Konzept_Gürteltier
Konzept_Konferenzraum
ROOM SCENARIOS
Konzept_01_Idee Dach Konzept_01_Idee U-Profil
DACH

15. Architecture & Interior: Concept “Bracket“

16. Architecture & Interior: Concept “Bracket“

17. Architecture & Interior: Concept “Bracket“

18. Architecture & Interior: Concept “Bracket“

19. Architecture & Interior: Concept “Bracket“

20. Prototype of Advisory Room

21. Question 2
Devices that support the process
WHAT KIND OF of financial advisory face to face.
DIGITAL DEVICES?

22. Digital Devices
A multitouch table for profiling
and product selection.
! It supports the interactive
process between advisor and
client.

23. Digital Devices
A digital wall to permanently
provide overview:
! Timeline
! Agenda
! Structure
! Organization

24. Question 3
An interface that advances
WHAT’S A NATURAL ! comprehension
! inspiration
INTERFACE?

25. Circle as main navigation element.

26. Circle becomes a multifunctional biomorph interface element

27. The Agenda shows up on the video wall

28. The Agenda shows up on the video wall

29. Profiling: Step „Life Situation“

30. Profiling: Step „Life Situation“

31. Profiling: Step „Life Situation“

32. Profiling: Step „Life Situation“

33. Profiling: Step „Life Situation“

34. Profiling: Step „Life Situation“

35. Profiling: Step „Life Situation“

36. Profiling: Step „Life Situation“

37. Profiling: Step „Life Situation“

38. Profiling: Step „Life Situation“

39. Profiling: Step „Life Situation“

40. Profiling: Step „Life Situation“

41. Profiling: Step „Life Situation“

42. Profiling: Step „Life Situation“

43. Profiling: Step „Life Situation“

44. Profiling: Step „Life Situation“

45. Profiling: Step „Life Situation“

46. Model 2
NETWORKED
FINANCIAL
ADVISORY

47. ! I am social.
! I‘m used to information and
interaction online.
MY ALGORITHM HAS
SOME FINANCIAL
ADVISORS

48. Advice is collaboration.
! I can learn about investing
A COMMUNITY OF ! I manage my plan
! I get input from family, friends
and financial professionals.
FINANCIAL ADVICE

49. Advice is collaboration
Investment
Goals and
decisions
finances
Financial
advisors Spouse
Tax advice
College
savings
Accountant Estate
planning
Children
Attorney

50. Advice is collaboration
Pete Smith: Jim, I’ve just taken my first job with
a 401(k) plan. I’ve shared my retirement plan
Pete’s career with you. I know you understand this stuff. Can
Pete’s retirement
you have a look?
Pete’s 401(k)
2012 2022 2032 2042 2052 2062

51. Advice is collaboration
Pete Smith: Jim, I’ve just taken my first job with
a 401(k) plan. I’ve shared my retirement plan
Pete’s career with you. I know you understand this stuff. Can
Pete’s retirement
you have a look?
Jim Smith [Brother]: You’re doing the right thing
Pete’s 401(k) by starting to save now. Make sure you find out
about the other investment options in your plan,
though. Right now, your contributions are going
Robbie’s college
into a money fund. Also, you should think about
saving for Robbie’s college education, too.
2012 2022 2032 2042 2052 2062

52. Advice is collaboration
Pete Smith: Jim, I’ve just taken my first job with
a 401(k) plan. I’ve shared my retirement plan
Pete’s career with you. I know you understand this stuff. Can
Pete’s retirement
you have a look?
Jim Smith [Brother]: You’re doing the right thing
Pete’s 401(k) by starting to save now. Make sure you find out
about the other investment options in your plan,
though. Right now, your contributions are going
Robbie’s college
into a money fund. You should think about 529s
for Robbie’s college education, too.
Pete Smith: Where can I find out about that?
Jim Smith [Brother]: My broker,
@George.Jones, set up the accounts for my
kids. Friend him and he can tell you how it works.
2012 2022 2032 2042 2052 2062

53. Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you
might be able to help me with investments for my
Pete’s career son Robbie’s college.
Pete’s retirement
Pete’s 401(k)
Robbie’s college
2012 2022 2032 2042 2052 2062

54. Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you
might be able to help me with investments for my
Pete’s career son Robbie’s college.
Pete’s retirement George Jones [Advisor]: Happy to help. You
should consider your state’s 529 plan so your
Pete’s 401(k) contributions will be tax-deductible. Start saving
$200 each month, and you can increase it with
your raise next year.
Robbie’s college
Robbie’s 529
2012 2022 2032 2042 2052 2062

55. Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you
might be able to help me with investments for my
Pete’s career son Robbie’s college.
Pete’s retirement George Jones [Advisor]: Happy to help. You
should consider your state’s 529 plan so your
Pete’s 401(k) contributions will be tax-deductible. Start saving
$200 each month, and you can increase it with
your raise next year.
Robbie’s college
George Jones [Advisor]: Since your son will be
Robbie’s 529 entering college in 16 years, I recommend a
growth-oriented approach, with a fixed income
fund for balance.
2012 2022 2032 2042 2052 2062

56. Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you
might be able to help me with investments for my
Pete’s career son Robbie’s college.
Pete’s retirement George Jones [Advisor]: Happy to help. You
should consider your state’s 529 plan so your
Pete’s 401(k) contributions will be tax-deductible. Start saving
$200 each month, and you can increase it with
your raise next year.
Robbie’s college
George Jones [Advisor]: Since your son will be
Robbie’s 529 entering college in 16 years, I recommend a
growth-oriented approach, with a fixed income
fund for balance.
Pete Smith: That looks great. How do I get
2012 2022 2032 2042 2052 2062
started?
George Jones [Advisor]: You can open an
account online at http://www.myState529Plan.org.!

57. Engagement is value for the advisor.
! I know right away when my
SOCIAL FINANCE client’s plans change.
! I see their whole financial
picture.
OPTIMIZES ADVICE ! I have many more
opportunities to bring value to
the relationship.

58. Model 3
THE
ALGOVISOR

59. ! I am mobile and social.
! I accept my data being
collected and used if it serves
MY FINANCIAL
me.
! I have no time or motivation to
become an expert in investing.
ADVISOR IS AN
ALGORITHM

60. Choices, choices, choices…
See what people are tweeting #SXSW? Find the best IRA and plan my retirement?

61. By being ubiquitous yet
SO HOW CAN AN unobtrusive.
ALGORITHM HELP
ME?

62. Advice is based on data.
! I don’t want to learn about
AN AUTOMATIC investing.
! I don’t have time to manage
my plan.
FINANCIAL ADVISOR ! I trust the Algovisor that knows
more about me than any
financial advisor ever would.

63. “Because investing is very individual and personal”
The advisor needs to know my
life, my goals, my finances.
SO MANY
ALGORITHMS
ALREADY DO

64. They know more than I would tell my financial advisor.

65. The all seeing Algovisor

66. The Algovisor uses MY interface
Sylke, you cancelled Great. I sent them to the
your trip to Australia. I Algovisor App, along with
am going to move the some details about the
funds we set aside for individual funds.
that into your xyz
account. Okay?
Yes
OK
I will allocate the funds
according to our current
portfolio model. Do you
want to review the trades
I am proposing before I
buy?
Sure

67. Thank you for coming
#SXALGOVISOR
! Download slides
www.mediaman.net/algovisor
! Contact
Sylke.Laine@mediaman.net