Tag: baas

Bank as a Service (BaaS) is an approach to banking that delivers banking services through cloud-based platforms. It allows banks to outsource the development and operation of their online banking systems, while providing their customers with the same functionality they would expect from a traditional bank.

InvestGlass helps banks to digitalize their services by providing a cloud-based platform that allows them to outsource the development and operation of their online banking systems. This allows banks to focus on delivering quality services to their customers while InvestGlass takes care of the back-end operations.

The SAAS Fintech Banking Platform

A SAAS Fintech Banking Platform is a software-as-a-service platform that provides banking services to businesses. These platforms are designed to make it easier for the people in your organization to process business transactions and send money, all while keeping your data secure. If you’re looking for one of these systems, here are five features that you should look out for:

1) Easy integration with other applications 2) Secure data storage 3) Customizable workflows 4) Completely mobile 5) Fully customizable reports

1 ­– Go digital it’s never too late

The global pandemic has tremendously impacted the speed of technology adoption. Indeed, lockdowns and remote work has made face-to-face encounters rarer. This trend forces executives and managers to, if not yet the case, accelerate digital adoption and offer digital products and services. In the wealth management industry, this implies a greater focus on digital advisory.

The global pandemic disrupted the means of communicating and satisfying clients. Besides, it also modified clients’ demands and approaches. The economic crisis and the ongoing uncertainty have led to increasing demand for financial advisory. InvestGlass provides the means for wealth managers to offer digital advising, be it via their workforce or artificial intelligence, and, thus, to develop a clear competitive advantage over laggards. With this pandemic – private banking – previously the most reluctant to move are running to catch up.

2 – Nurture all customer segments we mean ALL

Over the past years, the role of wealth managers, as well as their client targeting, has changed. From a pure wealth focus, wealth managers are now considering other customer segments. Pricing structures of wealth managers are shifting to include lower balance prospects. Indeed, in order to succeed and be able to provide their service to all market segments by reducing costs or improving efficiency, wealth managers need to partner with Artificial Intelligence advisory providers or similar fintech solutions and SAAS solutions.

Correspondingly, these previously underserved markets are surging as key interests for the future. Women’s and mass affluents’ presence in the financial markets is getting important and the trend can be assumed to grow. The increasing interest in underserved markets enhances the wealth managers’ need to reformulate their pricing strategies to convince these customer segments and partner with InvestGlass. We provide an all-in-one CRM as the cheapest solution on the market and enable offering your service to other segments.

3 – Trust me I am your banker!

Studying the clients’ expectations and behaviour, only 27% of Swiss individuals have worked with a financial advisor and over 50% manage their finances internally. This trend of behavior is a worrying aspect for wealth managers with the rise of new, more efficient, advisors such as Artificial Intelligence and Fin-tech companies.

The Swiss financial environment clearly showcases a duality: most use a bank but choose other means to manage their wealth. This opens a large array of opportunities to convince sceptics, yet, it also conveys long-term risks.

The challenge for wealth managers is that every decision of any individual is now demanding some kind of advice, ranging from buying a house to which insurance a client is selecting. This is where wealth managers need to evolve in the future, in order to gain market shares and fulfil clients’ expectations more thoroughly.

InvestGlass’s platform enables compliance with the need of the market by providing the means to make fast and efficient investment decisions. Satisfy your clients’ expectations starting today!

4 – Marketing hyper-personalization and All-in-one solution

Our customer-focused society has long supported mass customization. This trend is slowly but surely impacting financial services and wealth managers and has been exacerbated by the pandemic as the health crisis creates and enhances a plurality of needs within customer segments. Wealth managers are thus expected to connect with Artificial Intelligence and digital advisory fintech to tailor their offering to each customer. The two main focuses are going to be risk assessing firms, whose technology can interpret a client’s risk profile, and predictive analytics firms, which are expected to have extreme growth potential within the wealth management industry. Use InvestGlass CRM and tailor your offering to each customer with our customizable client portal.

Additionally, customers’ expectations have been changing and shifting towards all-in-one solutions. Indeed, clients and prospects aim at the most inclusive offer on the market. Therefore, wealth managers and financial companies, in general, need to include supplementary services or products in order to compete against inclusive competitors. Wealth managers, who can recognize this trend and act on it, will experience higher client satisfaction and retention. InvestGlass’s all-in-one solution, fin-tech ecosystem and open API embrace the trend.

5 – Get out with trendy thematics – even if you don’t share them. It’s the client first!

Over the last decades, before the pandemic became the main topic of discussion, the sustainability and sustainable investment trend were gaining ground. Global warming, child labor, and, more generally, ethical and environmental issues were increasingly important for investors. The pandemic accelerated the trend and wealth managers’ clients consider ESG (environmental, social, and corporate governance) criteria more closely than in the past. The focus is thus to understand clearly the values and needs of your clients.

Consequently, wealth managers are expected to strengthen their sustainability offerings and showcase priority in sustainable compliant products. InvestGlass provides the means and ends to integrate ESG criteria in your offering as well as an AI rebalancing advisor to match your investment strategy.

6 – Next-Gen Reporting when less is more – or maybe not

For any business, the tech-age our society is in has redefined competition. Firms, companies, stores, and individuals are fighting for awareness and attention. In order to foster engagement and attention from clients, processes have to be easy to use, interactive, and customer friendly. Therefore, technologies and innovations try to enhance clients’ attention by providing visualizable data, graphs, and images to engage and interact with them. Similar account aggregation makes a more friendly and comprehensive view of the clients’ assets.

Consequently, wealth managers can, via the InvestGlass module, deal with clients’ expectations to implement wealth tech which encompasses gamification in forecasting strategies and interaction in client wealth reporting.

7 – Instant Data is not flying cars

Data is the most important source of information for any sales manager. For wealth managers, it is imperative to know your customer and, thus, to base your advice and product propositions on data. The more data is gathered, the better tailored your service or product will be to the client and higher will be his/her satisfaction. As the way to gather such data is limited, advisors and wealth managers are now aiming for an alternative source of information such as behavioral data or localization data.  Additionally, machine learning is an important asset when pursuing predictive analytics and alternative data collection. E.g., Artificial Intelligence can scan the web and extract complex data on sentiments and social network critical trends.

Hence, it is clear that wealth managers will have to develop competencies and capabilities to deal with alternative data and to support machine learning processes, capabilities inherent to InvestGlass solution.

7 Benefits Of Digital Banking In 2021  > Key Takeaways

Digitalization: Digital transformation has been accelerated by the pandemic. It becomes a crucial point for wealth managers and the financial industry, in general, to innovate and embrace the revolution.

Nurture all segments: the range of potential customers for wealth managers is rapidly growing. The industry must understand this trend and change its offering to include lower balance prospects

Financial Trust: Individuals are lacking trust and interest in financial advisory. This leaves room for opportunities and threats within the industry.

Hyper-personalization and all-in-one solution: the mass-customization trend is also affecting customers’ expectations in the retail banking industry. Products should be customizable and integrate all relevant services via an ecosystem and integration.

Values and Sustainable investment: Competition and matching clients’ needs is a key focus during uncertain times. Recognizing the ESG trend and values within customer segments is the next focal point.

Next-Gen reporting: Interact with your clients. Clients are demanding gamification of performance reporting in order to increase their engagement with your product.

Discuss with InvestGlass team today.

baas, Digital onboarding, neobank

How Robo Advisory Tools Are Causing Fee Deflation and not Fee Collapse

As always, it’s all about scarcities and productivity

For many years, we heard that robot advisory would kill banks, and cause fee collapse. After five years of advising wealth and asset managers, we have seen a very different picture. Clearly, digital habits changed the behavior of some clients and their advisory nature. Self-service is desired by some. You can scan your items in a supermarket, but you can still cue and have a supermarket cashier taking care of you.

What changed in five years?

We noticed that profitability fell from an 80 basis points to 65 basis points. Robot World charging 0.25% or less did not revolutionize traditional wealth management; managing historically at 1%. Profitability fell but operating profit margins remained quite steady regardless of the size or location of the wealth advisor firm…. with or without MIFID2. Therefore, I’m quite skeptical of the merge, grow or die message we hear every day since MIFID2 in Europe and with the new Swiss LSFIN in Switzerland. Most companies we are working with are working in a low fee environment for many years now… The next frontier is not fees decrease, it’s economy of scale and domino effect. Firms want to build their fintech Appstore. Firms want to connect to cold storage solutions for crypto trading. Firms want to onboard clients like a neo-bank. Wealth and asset managers to become what we call today banks? Gartner said that most banks will be made irrelevant by 2030

Would fees increase again? Perhaps. We have seen an increasing demand for high-quality and complex services. The fee increased in the internet SAAS business when customers were seriously upset. (Something, I would suggest to a firm offering the Revolution to a debit card). Race for new yields and little engagement in the equity bull rally turned banks and advisory firms to offer real estate synthetics and private equity to anyone… Yield, risk, service quality or firm profitably? 

Clean, transparent, plug and invest

The cost of doing business is driven by the offset of non-core operations. From the UK, France, to Singapore, we are seeing clients using third-party chief investment officers – externalizing as much as possible investment process and levering robot techniques to rebalance portfolios at once. This trend is not fee compression but fee deflation!

Another reason for the externalized resources is the lack of talents. In Switzerland, we clearly face a serious problem: bankers are melting like our glaciers! How to regenerate a population of aging wealth and asset managers? Switzerland is not the only place where this talent shortage is blatant. In the United States, CFP certificates are severely lacking too.

This is quite ironic, the potential threat to the profitability of advisory firms today is not the “RAISE” of the robot advisor nor fee compression but simply the fact that there are not enough financial advisors to aggregate and grow the capital.

In France, MIF & “trading-related tax incentives” are pushing wealth managers to connect themselves to externalized allocators, limiting their universe to authorized securities, carefully curating “clean shares” from pre-approved assurance companies. What a world of transparency. In France, if you wish to invest in a tax-optimized US equity fund, you can choose only two funds! Therefore, wealth managers are rebuilding model portfolios into SMA separately managed methods. InvestGlass is used as a link between manufacturers of ETF, allocators of models, wealth managers, and their custodian/insurance companies: a transparent model portfolio produced in Nice, managed in Lyon and sold in Paris with a settlement in Luxembourg. What a jumping rope synchronization…

In Switzerland, fear of LSFIN is pushing wealth and asset managers to equip themselves with digital solutions. M&A operations are clearly a trend here for smaller firms being tucked into larger wealth managers. This trend is not always a guarantee of the economy of scale. The trend is set for larger blends and no firm below EUR 50 million could survive in a MIFID environment however we think that getting an InvestGlass EUR 3’000 per year will get your productivity level quite far. No need to reach EUR 2 billion under management.

Workflow Optimized to Help you Save Time

We foresee four trends, the first is going to be connectivity. Across the wealth management firm you are going to see people doing due diligence and exchanging notes and a selected list of securities. They need tools to be ready on the field. Then you have the CIO or allocator team-building model portfolios. You can do it into InvestGlass with our fintech-regulated CIOs and then exchange them across different members of your team. This trend could reach a point where each client has his own robot advisory model. Something we could call separately centralized advisory. “SCA”. This makes the process more seamless, moving you out of emails and excel where information gets stale and people get frustrated. Then you see the A.I part, where data is leveraged to enhance and customized each investor experience. The modularity of widgets coupled with AI offers a truly unique experience.  The last trend is risk analytics, where we leverage a web-based tool and more A.I. to reveal regulatory blind spots. Automated workflow is a response to improve your team productivity.

What do you think? Are you seeing the same pattern in your firm?

automation, baas, how to onboard a new client on institutional banking, robo adviser, saas

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