FinovateEurope 2017 – aixigo presents its High Performance Portfolio Management System

Last week, on the 7 and 8 of February, FinovateEurope 2017 took place at the Old Billingsgate Market Hall in London.

aixigo was there as a presenter and introduced its newly developed high performance API Services for portfolio management. The APIs include all the conceivable, complex functionality required to cover a digital asset management service (e.g. performance measurement, risk monitoring, rebalancing).

Presentation Finovate – Video

During the 7 minute slot, the speed at which aixigo PMS can find and return information was exhibited in real time using the Alexa Voice Service (Amazon Echo). Millions of portfolios can be efficiently managed in just a few minutes—even extremely large portfolios (over 30,000 transactions, a 10 year history) can be analysed within milliseconds. This was demonstrated by a live onstage analysis of 20,000 portfolios, whereby a result was generated in just a few seconds.

 

To see all presentation videos click here!

Here you can visit aixigos new API website, where you can find detailed information on our APIs.

 

 

Now it is your turn! Start afresh your investment business! For further information, Mario Alves and Ralf Steinhauer are at your service:

Mario Alves:
+49 (0) 241 55 97 09 – 20
mario.alves@aixigo.de

Klick here: Interview with Mario on the Finovate

Ralf Steinhauer
+49 (0)241 55 97 09 – 23
ralf.steinhauer@aixigo.de

High Performance API Services for Portfolio Management

Get to know our specific technical and professional backgrounds on our new API Website.

Meanwhile, here is a short pre-taste to the content:

On our Website, we introduce the newly developed, high performance API Services for portfolio management. They contain the complete functions to cover every aspects of a digital asset management offer (for example performance measurement, risk monitoring, rebalancing). aixigos API Services can efficiently evaluate millions of portfolios within just a few minutes. To be more specific: 1.000.000 customers can be operated in 5 minutes.
Even exceptionally large portfolios (over 30.000 transactions, a 10-year history) can be analysed in milliseconds. In addition, there is the possibility of live communication between client and deposit. The solution — a standard language service which communicates with the APIs. As a result of this unique combination, requests and graphics related to the deposit can be made available faster than ever before.

Why does it matter?

This innovative technology enables service providers to offer completely new services. The market of digital investment solutions for financial service providers is steadily and rapidly developing. With those API Services you are in the position to define a new standard for the digital wealth management. Further market shares and profit growths will be the consequence.

But do take a look yourselves:

API website

I look forward to your feedback:

Mario Alves

Phone: +49 (0) 241 55 97 09 – 20

E-Mail: mario.alves@aixigo.de

FinovateEurope 2017 – API-Services for Portfoliomanagement

aixigo will present its newly developed high performance API services for portfolio management at Finovate 2017 in London. They contain all complex functionalities to cover the aspects of a digital asset management offer (performance assessment, risk monitoring, rebalancing). They are able to efficiently operate millions of portfolios.

In addition, we will present how we master the ultimate challenge of live communication between customers and depot. Our solution: A standard voice service communicates with the aixigo APIs! This is how we demonstrate that our system provides results, queries and graphics to the depot faster than ever before.

You can experience this with aixigo at Finovate 2017 – restart your investment business! When you receive your Finovate visitor card via aixigo, you will receive a 20% discount.

Click here for the FinovateEurope 2017

Here you can see our new API Website

Mario Alves has more pre-press information:

+49 (0) 241 55 97 09 – 20

mario.alves@aixigo.de

Autor: Mario Alves

investify is live …!

Christian Neuenhaus: Yesterday, after a long and hard journey, investify went online. How does it feel?

Christian Friedlich: It is a ‘we’ve done it’ kind of feeling. The road for us was full of surprises, how difficult it is as a digital asset management service to get a licence for example, or how many processes and things there are to do that require asset management. In the end we are happy of course to have brought this very complex process under our control and to be able to offer a comprehensive service. It was a lot of work and we have learnt a great deal. We are convinced that we can now offer an excellent service to the customer.

Christian Neuenhaus: In the meantime, Robo Advisor has imposed itself en masse on the market. Why will investify have greater success than the existing services? What is different about investify?

Christian Friedrich: investify has a few clear, distinctive features.  investify is one of the few digital asset management services that is operating with a licence. Only a quite small group in the market has this privilege. What really differentiates investify, is the emotionalisation and personalisation of the investment that we offer. We don’t offer a standard investment, rather for the first time worldwide the client is in the position to receive a personalised digital asset management service. This is completely new to the market.

Christian Neuenhaus: The investment themes play a large role here. Could you please expand on that?

Christian Friedrich: This individuality, in contrast to the other providers, is shaped by the need to be aware of or to be able to influence where the money is being invested. The classic asset management service is as follows: ‘Invest my capital, but make sure that it’s not invested in weapons or GM technology, rather invest sustainably.’ That crucial individualisation feature possible with a traditional asset management service will come up against what we have to offer with investify. We offer the customer the option to specify the investment focus. The investment focus is packaged into themes such as electric mobility, online gaming, investing with minimal CO2 emissions etc. and some of these themes we have made investable for the first time.

Christian Neuenhaus: So that means that the investment is individualised to a much greater degree?

Christian Friedrich: That’s right—and a wonderful side effect. In the industry we talk about co-creation. That means, when people are involved in the creation of their product, they have a much greater sense of ownership. For example, in the automotive industry, it is standard that the customer creates their own car. In investment this effect is particularly valuable, because for many people it is extremely difficult to develop a sense of ownership with their investment.

Christian Neuenhaus: investify was founded by aixigo and Rhein Asset Management. A digital process was created in close collaboration. Which part did aixigo deliver?

Christian Friedrich: investify was built in a joint venture between aixigo and Rhein Asset Management. Rhein Asset Management is an established asset management company, which manages large sums of money. In our project, aixigo, together with Rhein Asset Management, looked at complete processes in daily work in detail. These began with the first action at 9 o’clock in the morning and finished with the last action at 8.59 the next morning. And the idea was to digitalise all of the actions and processes that an offline asset manager does. The result is a piece of software that digitally reproduces complete sub-processes of an asset management service. Consequently, these services are no longer exclusive to very wealthy clients, but can be offered very efficiently to a very broad customer base.

Christian Neuenhaus: That means that the entire process, from profiling to composing, is digitalised?

Christian Friedrich: Correct. The whole process from A to Z, starting with registration, the creation of a risk profile and daily portfolio management all the way to regular reporting is available digitally.

Christian Neuenhaus: In 2018 MiFID II will arrive. Are the necessary regulatory requirements already integrated into investify?

Christian Friedrich: We are already working daily on the requirements set out by MiFID, from the point of view of the banks as well as from the point of view of asset management. In the new solution, many of the future requirements have already been implemented. This way we have security for the coming years and will at most have to make just small adjustments to the software.

Christian Neuenhaus: How much could you draw on the experience of previous projects for the creation of investify?

Christian Friedrich: Of course we can take a whole lot of synergies from our diverse projects, risk profiling for example. This has been an integral part of our platform for years. However, for investify we had to take many steps differently. There is therefore very likely a difference between in-branch advice and digital advice. For many process steps, we had to think up new innovative methods. There are therefore process steps, which you wouldn’t think of at first when creating a digital contract-drafting process for the customer, but which succeed in making the process fun and very clear.

Christian Neuenhaus: Gauging from volume and the number of clients, FinTech is not posing such a big threat to the banks at the moment. Is the long awaited danger to the banks already over?

Christian Friedrich: It is in fact true that the volume managed by the so-called Robo Advisors is still very small. As it is, the banks need not worry about the pure threat of customer attrition. There is actually a very different pressure emerging and that is a pressure that puts the business model of the banks in danger. FinTech offers the customers many innovative and high value services at extremely attractive costs and promotes these attractive conditions vociferously. This will attract primarily the cost-sensitive customers of course.

We are operating on the assumption that this cost sensitivity will greatly increase from 2018 onwards, when ex-ante and ex-post cost transparency will be implemented by way of MiFID II. Bank and FinTech conditions will be very easily comparable. This will result in a considerable acquisition of clients in FinTech and also make it more difficult for the banks to enforce high surcharges and commission. This cut in revenue presents a real threat to the banking industry.

Christian Neuenhaus: If we could once more explicitly take on the topic of cost transparency and commission. How did you tackle this for investify in the framework of digital asset management?

Christian Friedrich: For investify we decided to offer the easiest and most transparent cost model possible. The client pays 1% per annum on the managed assets. With this percentage, complete services from the account management and transaction charges to asset management are covered. There is no hidden cost or commission.

Christian Neuenhaus: Let’s move on from the pure digital service and ask what advantages the digitalisation holds for the traditional branch-based service.  One aspect of this relationship, which in recent times has seen ever more widespread discussion, is the added value service that can come with a deposit. So how can the—I will call it branch-side—benefit from the digital processes and experiences?

Christian Friedrich: UBS in Switzerland are currently setting an example for how digital asset management operated by branch employees can offer attractive conditions to the banks. Here digital asset management will become an attractive product even for the banks. A hybrid model such as this could effectively be a completely digital asset management service, such as that offered by investify, conveyed however by branch employees. The branch employees can then concentrate on the market and the product idea. In comparison to traditional investment advice the regulatory requirements are far less. This has far reaching consequences—the demand on the advisors is significantly reduced and with this a greater number of advisors could sell such a product. Through the elimination of various process steps, the actual consultancy costs sink compared to traditional investment consultancy. Eventually the follow-up costs are reduced too, those incurred for the monitoring of protocols for example. The requirement for this of course, is that the new digital asset management processes are largely automated and fully scalable.

The second part of the answer is that we are currently observing a change in the business model of the banks. At the moment we are still experiencing the traditional business in many places—that means investment advice, surcharges, commission etc. What we are now witnessing, are the first stages of a transition to new business models and payment services that are orientated towards the service around an investment. At various banks there is already something known as Premium Deposits, where customers receive special services that are strongly reminiscent of traditional asset management. For these deposits, the banks offer, for example, an ISIN-applied monitoring of losses, exclusive reporting or the monitoring of asset allocation. It doesn’t therefore have to be asset management in its pure form, there can also be added value services for asset support that run digitally. If these digital services really add value for the customer, the banks will be able to impose charges accordingly.

Christian Neuenhaus: Can traditional advice still be provided economically at all? In the Netherlands and Great Britain barely any advice is given in branches for financial reasons.

Christian Friedrich: A further threat to the business model of the banks, about which we haven’t spoken about at all yet, is the change in direction of the product world towards ETFs. Because of their favourable cost structure, these products are found in many digital offers and are very attractive to customers. Accordingly, these products are celebrated in the press and test magazines too. What is attractive to the customer, poses a big problem to the banks, because the earning potential is extremely low. If a bank wants to deploy such a product it needs to be done within the framework of a new pricing model for instance in the context of fee-based advice, digital asset management or digital asset support—so precisely the aforementioned value added service.

Christian Neuenhaus: Is the move by UBS to offer asset management from 100,000 euro pioneering? That is, can it be assumed that this high value service will receive widespread acceptance in the retail sector?

CHRISTIAN FRIEDRICH

Christian Friedrich: That’s absolutely right. aixigo is working extremely hard not only on investify, but also generally on digital solutions, with whose help even personalised asset management will be accessible to millions. Alongside investify, next year the first banks will be able to offer asset management services to a very broad customer base on the back of aixigo-technology.

When, in 2020, we look back on the securities business of 2016 and look at the accompanying services, we will notice significant changes. These changes will be comparable to the rapid changes that occurred at the advent of online banking in the 1990’s. We are very much looking forward to these developments.

Have a look at investify

Digital Investment – Study by aixigo AG

During the FinTech wave two years ago, we began an intensive and continuous evaluation of all emerging and existing robo-advisors.
Our study is based on more than 80 robo-advisors. The creators of these robos are FinTechs and banks. The aim of this study was and still is to put the market of online advisory offers under the microscope; and at the same time identify successful companies and understand the reasons for their success. Our focus is globally oriented. Most of the robos under observation come from Europe, the USA, Canada and Australia.

What data was collected?

We conducted initial extensive research into the provided tools and associated websites. We were also concerned with the construction of the tools.
Are questions being asked about risk-bearing capacity, risk-bearing settings, experience and knowledge? If so, to what extent? What is the minimum investment amount? Can I maintain one or even several investment objectives?

We reviewed and tested the complexity of the tools, and whether and to what extent simulations are possible. We also analysed the company behind the robo: Is it a FinTech company? In which countries is it represented? In what year was it established, or when did the robo go live? Additionally, we classified the robo for individuality and service level. Where possible, we also collected the number of customers and AuM (assets under management). We considered safety aspects: Is the company regulated? Does it have a license? What identification methods are used during onboarding? With which partner bank is the money deposited? We also collected the countries of distribution, sales focus and product partners.

Cost factor is also decisive for the assessment of robos. We calculated the annual cost for a one-time investment of € 20,000 and then assessed the cost models according to transparency.

How was the evaluation carried out?

First, we looked at factors that say something about the success of a robo-advisor. For one thing, the number of customers and the AuM (assets under management), but also public perception on social media, especially Facebook and Twitter, and Google entries.
Based on these values, we derived a score for each company.

What do we want to achieve with this study?

This study helps to reach strategic decisions. New providers and models come onto the market on an almost daily basis. A systematic decision-making tool can hereby ensure transparency. In our view, the following 6 questions serve as a derivation for a decision-making tool:

  1. What models of digital investment advice are available?
  2. What asset management is offered?
  3. Is regulation consistent with digital investment?
  4. Best Practice: What models are successful today?
  5. What developments can be expected?
  6. How can I reach a future-proof digital decision for my bank?

There are currently 20 providers in Germany, 40 providers in Europe and 100 providers worldwide. The offers vary in complexity, value proposition, degree to which they can be individualised as well as business model.

No fear of compliance

Investment advice is still largely avoided by many offers in the area of MiFID, asset management has become more common and real investment advice for securities is not yet taking place.
Regulations experts expect significant changes here from almost all national authorities. What is coming onto the market and what are the conditions to be observed?

Asset Management

Asset Management and products used by non-invested assets play an increasingly important role in differentiation.  Particularly demanding asset management is used by some providers communicatively in a centralised position. We will present you with a typology and an assignment of individual offers, and show you in more detail which consequences the individual methods can have for you and your customers; paying particular attention to your sales, technical and regulatory details.

Think of tomorrow today

Many of the robo-advisors on the market are equivalent to a first-generation development stage. These robo-advisors, however, are almost exclusively used by the “pioneers”. The development of larger customer groups or customer volumes cannot be achieved with this technology. Currently, the third generation is on the market. This generation is already more capable of opening up larger customer groups.

Our in-depth knowledge of the global market of FinTech robo advice offers will help you find the ideal solution for your bank. Not all models record growth rates. Whether cooperation, imitation or adaptation – avoid models that have limited prospects.

We’ll offer you an impulse workshop on this subject. There, we’ll provide facts with a particular focus on the German market. Get access to information that allows you to make clear decisions; even if this means that your bank offers no digital investment. We’re currently expanding the study with a few details. You can find out even more in a few weeks.

 

Author: Christian Neuenhaus

The impact of the MiFID on active customer support

The second stage of the MiFID is a further “milestone” for financial service providers. Especially in terms of active customer support. This was the reason for us to discuss the consequences and requirements in a group of experts. 14 compliance and MiFID responsible project managers from banks, business consultancies and law firms participated.

Topics of the discussion were, among others, cost reporting, suitability, grants and target market. Almost simultaneously to our discussion meeting, the Federal Ministry of Finance presented the draft report for a second Financial Market Reform Law. This draft is to lead to the implementation of MiFID II. As expected, the Ministry has essentially transferred the delegated legal act into the German law and thereby amends the Securities Trading Act and the relevant byelaws. Due to this, the draft does not contain much new information.

Here are the most important concretisations in our view in short:

Consultation Protocol

In the new article 55 section 11 WpHG, the renunciation of the previous advisory protocol is introduced. According to the requirements of the MiFID II, the draft law only requires a so-called “suitability declaration”. This is to name and elucidate the provided advice in terms of how the consultation was coordinated with the preferences, investment objectives and other characteristics of the customer. This would be nothing more than the documentation of the suitability test which was also required as a declaration of suitability until now. This would make possible clear facilitations with respect to the strict current standard which requires an individualized documentation of the consulting situation. This would benefit f.i. the so-called Robo Advisers since the explanation of suitability can be presented via automated systems. This would open the way for electronically generated consulting protocols on the basis of the customer’s data.

Commissions

After the long discussion about the justification of commissions by quality improvement for the customer, the branch network is also recognized as a quality improvement measure now. This clarification was added to the WpDVerOV. If the customer is given improved access to consultancy services, since the granting of a ramified regional branch network in rural areas ensures on-site availability of qualified consultants, it is a quality improvement that can justify commissions. For the institutes without a branch network the strict regulations for quality improvement, unfortunately, remain. In particular, the proposed article 60 of the Securities Trading Act contains the requirement that it has to be proven that the quality “of the respective service for the customer” will be improved. This is likely to complicate broad-brush justifications, instead, for the respective service it has to be documented for the customer which quality improvement is achieved by the commissions. quotation-lange_2In addition, in ongoing grants, that is, especially in the case of portfolio commissions, an annual information to the customer on the actual amount of the accepted or granted benefits has to be given.

Telephone recording

The draft also contains concretizations in terms of telephone recordings. The obligation is to be included in a new article 72 section 3 WpHG. The obligation to record telephone conversations exists in proprietary trading, that is, in the case of trading on one’s own account and for all services in relation to the acceptance, transmission and execution of customer orders. That goes very far. Recorded are to be, especially, those parts of the telephone conversation, in which risks, profit opportunities or the design of financial instruments or financial services are discussed.

 

On one hand, this specifies the delegated legal acts but, on the other hand, goes beyond those. In the delegated legal acts was just the talk of the obligation to record telephone calls “which can lead to an order placement”. According to the current proposal, almost all telephone calls in connection with securities trading have to be recorded.

Sales representatives and employees in the financial portfolio management

In a new article 76 WpHG, demands on sales representatives and employees in the financial portfolio management are arranged.

Sales representatives are those who inform customers about financial instruments, structured deposits and the company’s services. For them, expert knowledge requirements are set up in a new article 1a) of the WpHG Employee Notification Regulation. They have to master the legal basics as well as the professional foundations, just like the employees in the investment advisory, namely, for the financial products about which they provide information. In addition, the reliability of these employees has to be ensured as well.

The requirements for employees in financial portfolio management contain the same regulations. They must have the same expertise as the investment advisors, namely, for those financial instruments that are used in financial portfolio management. In addition, there are requirements concerning professional foundations in the fields of portfolio management and portfolio analysis.  quotation-waigel_2Moreover, a practical time of six months in the financial portfolio management with customer contact and practical exercise of the financial portfolio management has to be proven.

Product Governance

The requirements for product governance for the developers of financial instruments are recorded in a new article 11 WpDVerOV and for sales companies in a new article 12 WpDVerOV. Fortunately, the draft contains a clarification, according to which, the target markets only need to be created by the developers as far as financial instruments are “created, developed, issued or designed”.

Sales companies have to define target markets if such definitions cannot be obtained from the developers. However, the determination of a specific target market for each investment service (f.i. investment advice or management) is not necessary.

The product monitoring arrangements are to ensure that “the products and services are compatible with the needs, characteristics and objectives of the particular target market and that the sales strategy is consistent with the specific target market”.

The start point of the MiFID II is no longer too far away. The discussion showed, however, a partly, very heterogeneous view of the things that still have to be implemented by the banking and financial services sector. For this reason, we will discuss the current situation again in a few months.

 

Author: Christian Neuenhaus

Investify API Banking

execfintech – investify was there

Exefintech took place in Frankfurt on 03.08.2016. The German counterpart of Finovate in London offered 40 FinTechs from across Europe a platform for interesting panel discussions and networking. Fintech could not miss the almost obligatory pitch for “Best in Show”. The pitch was held in the form of a maximum of three minute presentation. During this time a jury had to be convinced by the (great) core idea – quite challenging!logo-execfintech API Banking

The substantive focus was broad. From the option to put money without loss (Scalable Capital), real-time streaming of financial data (streamdata.io) to individual credit release on the Internet based on 200 factors (Twisto), everything was represented.
Read more

Digital Banking Solutions at Finovate 2016

Visiting and showing investify – our digital wealth manager on Finovate Europe 2016 was an impressive experience. In my previous blog post you heard a lot about the conference, the concept and the audience. Meanwhile the video of our presentation is online:

Today I want to celebrate the presenters who all earned my respect. I still do find it extremely challenging to present in front of over 1.000 people. Especially that you have to make it informative and entertaining as well in the very short presenting time. So congratulations from me to all of them. Read more

Serverraum-Überwachung

Server Room Monitoring: the project

Server room monitoring

Breadboard with sensors for temperature monitoring

Since 1st March 2016 I am working on my final paper for certification as qualified IT specialist system integration. The topic is the “Introduction of server room monitoring based on cost-efficient and self maintainable, preferably open software and hardware”.

I decided to implement the process with Raspberry Pis in order to be able to control the correspondent sensors. These should be integrated in the network and transmit the current temperature data of our server rooms and the relevant air conditioners to out IT department. Ideally I will also embed humidity sensors, which will, a big surprise, measure the air humidity in the rooms.

Server room monitoring

from left to right: temperature sensor, temperature/air humidity sensor

The current plan is that there will be two Raspberry Pis in every server room, which will manage an until now not determined number of sensors. These altoghether four Pis will be placed reasonably throughout the server room in order to guarantee the as much as possible all-over monitoring. A fifth Pi should be provided with an 8 inch display and will graphically illustrate the progression of the temperature at our office.

We will use the DS18B20 as temperature sensors and DHT11 as temperature/air humidity sensor. In case of one of the sensors registering a deviation, which was determined beforehand by us, our department will be informed by e-mail right away so as to be able to react quickly to the matter.

I will turn in the paper probably around 15th April 2016, afterwards the project is going into production. Here at aixigo new innovative ideas are welcomed anytime, especially if they improve the monitoring of the already existing infrastructure. It will centralize the information management and shorten the processing time. This was a very exciting and challenging project with a lot of hadicraft work both in the hardware and software unit. I definitely enjoyed it very much and am glad that is of a modular structure so that the colleagues will be able to maintain and expand it.

Christian Werrmann

Event – Fintech kidnapped branch

Online registration.*

Digitalization continuously changes business and society. More than one third of all communication in Germany takes place through digital channels. Citizens obtain 41% of all their purchase-related information from digital sources. The wave of digitalization has long ago transformed banking as well. It continues to challenge the top management—more strongly than ever during the past decades.

Traditional branches seem less and less relevant.

Could customers be carrying the branch of the future in their pockets? Will there only be “financial services to go” left at the end of this road?Digitalization - PresentersWe discuss the present situation in our lecture series “FinTech kidnapped branch?” from several perspectives.

  1. From the perspective of FinTech: How does the entire digital process work?
  2. From the perspective of a seemingly unrelated industry: How does the automotive industry combine digitalization with car dealerships?
  3. From the perspective of the wealth of data generated in each of the channels: Are these used productively at all for any of the channels?
  4. And from the perspective of the good “old” branch: Why is the branch vilified at every turn, but no one is doing anything apart from closing it?!

Read more