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Tag: roboadvisor

A robo advisor is a financial advisor that relies on software to provide investment recommendations.

With InvestGlass, you can build a robo advisor in minutes. Our easy-to-use platform makes it easy to create and manage your investment portfolio. Plus, our low fees make it more affordable than ever to get started with investing.

Wealth Management of the Future: What is it all about?

COVID19 is boosting the wealth management industry digitalization and commoditization. It’s time to look at how digital transformation and digital approach will impact the future of wealth management and digital banking.

In this blog post, we will discuss some of the changes coming in wealth management as well as what they mean for you!

Wealth management is about to undergo some major changes in the next decade. There are new technologies coming down the pipeline that will provide services to investors and businesses, to invest their money. Technology like Robo Advisors and Artificial Intelligence will be accessible to every client or business that wants to improve its financial situation through wealth management. These innovations could eventually replace human financial advisors altogether. But how does all of this affect you?

How automation will affect the wealth management industry?

Robo Advisors are basically automated investment tools that can be set up to automatically invest in different funds and stocks without any human interaction from a wealth manager. Through the ability to enhance analytics and large amounts of data they can monitor the global economy and finance markets to derive insightful advice and investments for their clients. You just have to tell the Robo advisor how much money you want it invested in, what your risk tolerance and strategy are, what sectors you focus on, and then let it run! The only time a human will need to intervene is when it comes to financial planning and private banking that human interaction is crucial. With InvestGlass you can build your robo-advisor in 10 minutes!

Build digital onboarding forms and link them to InvestGlass rebalancing tool to produce your own robot advisor. The robot will help you to generate trade blotters from your model portfolio blueprints. Rebalancing will screen the CRM KYC to make sure that you respect each clients’ suitability before you trade

How the management fees of wealth managers will be affected?

Robo advisors have highly affected the fees generated for wealth managers. Since the advent of AI in finance, the cost of investing and trading has dropped significantly. Wealth management and service providers took a major hit as far as their management fees are concerned. A wealth manager can no longer compete with the really low management fees their competitors are offering. As seen in the below graph, the higher management fees can heavily affect your cumulative returns over time. An average active management advisory fee is close to 2-3 % while an ETF fee will be around 0.60%. This difference might look minor for one-year performance, but if you take under consideration a 10-year lifespan and the compound effect, the difference will be substantial.

Should a wealth manager approach young investors differently?

An investment manager should always try to approach the younger generation’s needs in order to compete with artificial intelligence and leverage technology. This can be achieved through investment and financial advice in next-generation topics, like sustainable finance that ranks top in the investment preferences of Generation X and Z. This means, that we should see a shift in wealth management industry towards topics of Sustainability, ESG, and DeFi where most of wealth advisors should specialize in order to catch up with these new trends.

The question always remains, is a managing director or senior management, willing to invest in the digital transformation of their company?

It is important to consider the future of wealth management.

InvestGlass has created a suite of digital tools that will help you assess where your clients are in their financial journey and what they need today for tomorrow’s success. InvestGlass offers a single platform for portfolio management system, order, trades, payments and risk management, FINSA, MIFID.

You can develop stronger customer relations through the use of real-time insights and data-based recommendations to tailor your advice to your customers’ needs. Additionally, the tagging option allows you to classify your clients into various categories, such as risk-averse and risk lovers, or sports fans and technology optimists. 

The future of wealth management lies ahead. Are you able to follow? Contact us.

future of finance, roboadvisor, wealth management

How to build a robo advisor from scratch?

Many financial advisors are not able to attract new clients because they don’t have the time or expertise to create a robo advisor.

InvestGlass is an online platform that lets you build your own robo advisor in minutes. It’s easy, affordable and respects MIFID and FinSA regulations. You can embed it into your client portal or public website. Digital banking is made possible with a Swiss Cloud.

InvestGlass is a cloud-based software solution that lets you easily design and deploy a beautiful robo advisor form for your website without any programming knowledge needed. Our smart algorithms will guide investors through the process of choosing their investment goals, risk tolerance and asset allocation, while automatically calculating their expected return based on real market data from multiple exchanges around the world. The result will be displayed as an attractive pie chart with percentages clearly labeled next to each category of assets (stocks, bonds etc.).

This is the perfect first step to build you own neobank.