The digitization of the financial industry often progresses only cumbersome. Great successes or changes usually come from the emerging challengers or “online-only” banks. The established players are trapped in legacy systems that are not up to the pressure of digitization and regulation.
This applies especially to investment processes. From consultation to portfolio design, steadily falling margins meet with high manual effort in all areas. In the field of tension between compliance, process costs and the desire for differentiation, existing technology often blocks the future.
The following five points describe which tasks your current investment software is unlikely to perform and what added value you can expect from modern software.
1. Your investment software has too little data about your customers and their value(s)!
Open Banking offers new ways to gain a holistic view of your customers. The linking of accounts, deposits and other assets makes it possible to capture the financial situation of your customers faster, more detailed and more comprehensively than most existing investment software can.
With Fincite.CIOS, financial service providers can capture all their clients’ accounts, deposits and other assets (real estate, private equity, etc.) in a 360° view. Based on this hollistic view, CIOS provides recommendations for individual actions either directly to the customer or as a sales impulse for the consultant. With our Software the consultant gains an understanding of the client and the customer lifetime value.
2.You can´t automate your investment process with your existing software!
From collection of the financial situation and the risk profile up to the investment compliance and documentation there are many – often manually carried out – steps which cause high process costs and compliance risks. Most consulting or portfolio management systems often lack an end-to-end view for effective automation. But the processes of investment consulting or asset management can be automated to a large extent.
Fincite.CIOS digitally maps the processes from recording the financial situation to portfolio construction and order generation. This end-to-end process saves more than 25% of time per customer per year. In addition, automated processes can almost completely prevent violations of investment restrictions.
3. Your investment software is not a front-office system and can´t be customized!
Portfolio management or advisory systems are not built for customer contact. They rarely view their customers holistically in terms of their financial situation, current portfolios and individual opportunities.
Existing systems are often far away from the vision of financial service providers of a fully digitized and highly customizable process. Rather, they deal with questions such as:
– How many individual customer portfolios can the software manage?
– What happens if more than 100 customers access the software at the same time?
– How can we deliver an outdated user interface to the customer to meet reporting requirements?
– How can data fields for the MIFID2 reporting requirements still be integrated into the existing system?
Fincite.CIOS is designed for highly customized client portfolios and digital interaction. Our software includes the ability to provide your clients with real-time insights into their assets with a visually sophisticated and modern dashboard. Digital interaction and excellent communication processes will increase your customer satisfaction and loyalty and empowers your advisors.
4. Your investment software does not enable a fast roll-out
The world of a financial service provider is complex. Through several channels (e.g. consultants, online, mobile, distribution partner) different service models such as self-execution, investment advisory, and asset management models are sometimes rolled out across different customer segments (retail, mass affluent, private banking) in several countries.
Existing investment software is often not designed for this diversity and different purposes.
Fincite.CIOS enables financial institutions to implement different service models on one software using a process mapping layer. Modern REST or GraphQL API layers allow access to the logic across different channels. To date, international financial service providers are already using CIOS’s multi-tenant environment to extend their consulting and portfolio management processes to multiple countries. All for a fast rollout.
5. Your investment software does not maintain a relationship with your customers!
The Markets are changing. And with them often the financial institution’s evaluation of asset allocation and individual products. But customers also change. Their financial situation and thus their risk profile can develop. It is just important to check these changes regularly (a requirement according to MIFID2 by the way) and to implement the recommendations of the Investment Office in the client’s portfolios as good communication – especially in times of crisis. In many cases, existing investment software does not meet these requirements.
By continuously linking the financial situation and providing market data, research results and signals, CIOS offers the basis to keep the client portfolio in shape and to provide clients and/or their advisors with specific knowledge for every market situation.