#Fintech #Roboadvice #DigitalInvestment # ... - CFA Institute · 04 Marketing Let’s not deny it,...

#DigitalInvestment

#Roboadvice

#Fintech

#WealthTech

#Innovation

#Academic

#WealthManagement

#MiFID

#Digitalization© 2018 Gambit | All rights reserved PRIVATE AND CONFIDENTIAL

Traditional Banking is Challenged

01 TrendYour Customers have changed. Have You?

Branch Visits

Online interaction

Return on SavingsLow

02 GivenCompliance is key

100% compliant

= 0 Customers

2

03 ProblemIt’s SLOW to Convert

Save to Invest

Why is that?

© 2018 Gambit | All rights reserved PRIVATE AND CONFIDENTIAL

Why is it slow to convert?Listen to the customers

3


Investing is for the Rich only

• Allow small amounts

• Recurring investments

Too Complicated

• Digital and gamed onboarding

• Simple Language

People are afraid of Financial Markets

• Make Investment automatic

• Allow testing (show the up and down)

• Quick money back

Example of a Robo-advisorDiscretionary management for online investors

Dashboard360° overview of client portfolios, tasks and advices

Advice validationCan validate a proposal prepared by an advisor

Alerts & NewsfeedPush notifications: Personalized advices and/or general news

Onboarding ProcessIncluding MiFID profiling and KYC

100% online

My PortfoliosClient portfolio analysis

Investment goal monitoring

CommunicationCustomer communication platform

Track and filter live customer data

4


16

Wait a minute…


?

B2B and B2C?

Isn’t that competing with your customers?

03 Being RegulatedMakes us more relevant in the industry.

04 MarketingLet’s not deny it, the press attention is welcome.

01 Practice what you preachWe believe in the strength of our tools.

POCs are no longer necessary. There is proof it works.

02 Use the experienceTo create better tools.

To better understand the business of our customers.

6

8

1 000 000

€ 50

>100

2010

5

Robo-advice & Portfolio Mgmt

Investment Advisory

Risk Management

GAMBITSpecialized in Digital

Investment Solutions


CM Arkea

Formerly: Delta Lloyd Bank

CMNE

Trusted by:

Expanding

Adoption of Robo Advice7


1

2

3

Shift from save to invest

Shift from traditional investment methods to digital methods

Trust a new player / brandConsumers shift in behavior necessary for robo-advisory

success

There are 3 key factors to overcome by consumers before switching to a stand-alone robo-advisor offer

Robo Advisors

Study “Robo-advisors: Comment sont-ils perçus par les investisseurs particuliers français? » realised by Ifop commissioned by Gambit Fiancial solutions, January 2018.

Audience of 301 persons with an annual brut revenue of 80000 euro or more.

42% 3% 75%80%


Know what a robo-advisor is.

(22% knows details)

See a robo-advisor as a

complement to their financial

advisor

Already invested in a Robo-

advisor

Think Robo-advisors are at the forefront in

terms of innovation and

technique.

Quite some people know it… Most people trust it… ….But few invests in it. Luckily….

9

Hybrid model: Robot for Advisors

A Robot that keeps the Independent Financial Advisor

at the centre of the customer relationship.


Total OverviewDashboard of all customers, their AuM, onboarding progress, etc.

Access to Customer InterfacePossibility to connect to the customer interface via an advisor specific access.

Automated Ptf managementPortfolios managed by the algorithms and investment committee of Birdee.

Own brandingColours and logo of the IFA

White labelled version of Birdee

Own pricingAFI sets its own pricing on top

of the Birdee FP tariff

CommunicationNewsfeed and chatbox are

managed by the AFI

What happens in

the back

Risk

ROBO-ADVICE

Not just a robot…

Correlations

Constraints

Investment Universe

Expected Returns

Objective

Risk ProfileTime HorizonInvested amount

Investor

Seismograph

Expected Returns


ROBO-ADVICE

Not just a robot…

And the Algorithm?

Maximization of the Expected ReturnMaximization of the Standard Utility FunctionMaximization of the Gambit Utility FunctionMinimization of the VolatilityMinimization of the GVaRMinimization of the MVaRMinimization of the Gambit Risk FunctionBlack-Litterman

….


OptimizationOptimal

AllocationRebalancing Result

• Min turnover threshold • Max turnover rule (with priority rankings

based on marginal Sharpe ratio per ETF)• Seismograph signal

• Gambit Utility Function• Callibration period 12 months• Individual constraints• Risk constraint per profile (Volatility)• Asset class constraints• “Advanced Backtest” (incl. tax and fees)


Innovate or Die

15

Innovation is a continuous processLet’s look into the near future

Birdee v3

Birdee Advice

Big Data

Chatbot

Private Banking and follow-up improvements (portfolio

personalization, communication, reporting).

Advisory in Birdee (on top of DPM). Clients can adapt and validate portfolio recommendations .

Integration of external data in our allocation algorithms for “autonomous” clients.

Automated chatbot on top of existing chat functionalities.

Integration of machine learning to help users determine/predict their life goals and, once financed, how

concretely realized them

Integration of machine learning in the algorithms and use of

data from customer to optimize personalized portfolio.

Q12019

Q32019

Q22019

Q42019

Artificial Intelligence

Artificial Intelligence


16

Let’s look into the futureGambit Product Strategy

2P R O P O S A L

1S I T U A T I O N

3S A L E &

A F T E R - S A L E


17

Gambit | 09:41

Answer a few questions to determine your profile

Gambit | 13:21

How much can you save per month ?

Gambit | 12:13

What are your investment objectives ?

Gambit | 10:59

How much do you have aside ? What are your other financial or non-

financial assets ?

1S I T U A T I O N

T O D A Y


Gambit | 09:41

Answer a few questions to determine your profile

Gambit | 13:21

How much can you save per month ?

Gambit | 12:13

What are your investment objectives ?

Gambit | 10:59

How much do you have aside ? What are your other financial or non-

financial assets ?

18

Gambit | 09:41

Having analyzed your behavior, we think your risk profile is...

Gambit | 10:59

Let’s synchronize all your assets in 1 min

Gambit | 13:21

Based on your historical transactions, we think you can currentlysave x.xx€ / month

Gambit | 12:13

In our opinion, your personal investment goals are[Personalized Goals]

Gambit | 19:14

You are expected to get x.xx€ / month as legal pension.Is that enough for you ?

Gambit | 20:20

x% of people of your age have a complimentary retirement plan.

What about you ?

1S I T U A T I O N

T O M O R R O W


19

T O D A Y

Gambit | 09:41

Based on your situation, we recommend you to invest in thefollowing portfolio…

Gambit | 10:59

Ask for a new recommendation

Gambit | 12:13

You don’t want to invest in this particular asset ? Change it

2P r o p o s a l


Gambit | 09:41

Based on your situation, we recommend you to invest in thefollowing portfolio…

Gambit | 10:59

Ask for a new recommendation

Gambit | 12:13

You don’t want to invest in this particular asset ? Change it

20

T O M O R R O W

Gambit | 09:41

Based on your situation, we recommend you to take the followingactions… [actions list]

Gambit | 10:59

Here is a piece of advice for you : [advice]Do we go for it?

Gambit | 12:13

Are there particular sectors or values you would like to invest in ornot to invest in ?Personalize your investments

Gambit | 13:21

Here is why we recommend you to follow this [advice]

2P r o p o s a l


Gambit | 10:59

Follow the evolution of your portfolios

Gambit | 09:41

Transfer money to your portfolio

Gambit | 13:21

Does the recommendation still match your risk profile ?

Gambit | 12:13

Track the completion of your investment objectives

21

T O D A Y

3S a l e &

a f t e r s a l e


Gambit | 10:59

Follow the evolution of your portfolios

Gambit | 09:41

Transfer money to your portfolio

Gambit | 13:21

Does the recommendation still match your risk profile ?

Gambit | 12:13

Track the completion of your investment objectives

Gambit | 19:14

Are your assets properly organized ?Let’s make a quick diagnostic

Gambit | 20:20

What would happen to you if a financial crisis occur ?

Gambit | 09:41

Transfer your money in just a click

Gambit | 10:59

What is the current state of my entire financial wealth ?

Gambit | 12:13

Track the completion of your investment objectives on the basis ofour recommendations

Gambit | 13:21

Your portfolio is no longer in line with your profile. Now is time torebalance

22

T O M O R R O W

3S a l e a n dA f t e r s a l e

Gambit | 19:14

Are your assets properly organized ?Let’s make a quick diagnostic

Gambit | 20:20

What would happen to you if a financial crisis occur ?

Gambit | 09:41

Transfer your money in just a click

Gambit | 10:59

What is the current state of my entire financial wealth ?

Gambit | 12:13

Track the completion of your investment objectives on the basis ofour recommendations

Gambit | 13:21

Your portfolio is no longer in line with your profile. Now is time torebalance

23

T H E D A Y A F T E R T O M O R R O W

3S a l e a n dA f t e r s a l e

16

Team


What kind of profiles do you need?

03 Project Mgmt & Quality Project manager

Tester

Quality manager

04 Supporting servicesFinance, Admin

Sales

Support & infrastructure

01 ProductFunctional analyst

Quantitative analyst

Product Owner

02 IT Development.net developer

Front-end developer

UX UI designer

59 Boulevard RoyalL-2449 Luxembourg

Avenue Louise-Louizalaan 54B-1050 Brussels

Rue Mulhouse 36B-4020 Liège

124 Rue RéaumurF-75002 Paris

They Trust UsWhy not join them?

@GambitFinance GambitFinance [email protected] Financial Solutions +32 4 279 88 00

25


CM Arkea

Formely: Delta Lloyd Bank

CMNE

#Fintech #Roboadvice #DigitalInvestment # ... - CFA Institute · 04 Marketing Let’s not deny it,...

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Transcript of #Fintech #Roboadvice #DigitalInvestment # ... - CFA Institute · 04 Marketing Let’s not deny it,...