Investment reporting – definition and delimitation
Generally, three different stakeholder groups can be defined for investment reporting:
Advisors (or relationship managers)
Management (including supervision)
Reporting Definition by Target Group
Client Reporting – from MiFID2 to real client added value
Client reporting is an important service and appreciated by most banking clients as it helps them to keep track of their whole financial situation. Sometimes it is even the only out-of-bank touchpoint that provides consistent interaction between the client and the bank. It mostly covers the following sets of criteria:
- Portfolio values
- Portfolio allocations
- Stock/security and sector analysis
- Transaction summary and details
- Accrued income
- Risk and performance figures
- Scenario simulations
Reporting for Advisors and Relationship-Managers – offer guidance and the next best action for your clients!
In addition to the client’s overview and dashboard, a great reporting helps to focus the attention to where it’s needed.
A user-friendly advisor reporting displays:
- which customers need to adopt the portfolios
- upselling potential
- prevention of churn where applicable
Management Reporting - how to understand and manage your organization better
There are specific regulations financial institutions need to follow when it comes to reporting. In order to stay up-to-date with these regulations, banks are constantly improving their internal processes and spreading the risk culture across different business lines (e.g. finance and risk). To achieve this goal, firstly the management team creates appropriate reports. These reports should indicate the risk and inform the business of that risk at the same time. By providing the reports institutions enable the business to appreciate their return compared to a global risk overview.
When it comes to the business side, gaining new clients or increasing assets per advisor are key drivers. A detailed management reporting shows where to focus on and in doing so helps increase the bank’s profitability. Furthermore, management reportings will also give you an answer to the most important questions such as:
- How to manage the advisor team efficiently?
- Who are the most profitable clients?
- What are the relevant client profiles?
- How to identify clients who need support?
Investment Reporting - Definition by function
With regard to the technical function of a reporting, a distinction is generally made between two forms:
a) time-controlled and b) event-controlled reporting.
With this function, important key figures can be displayed over time. Depending on the target group and data basis, the desired information is displayed in relation to time sequences, previous year or monthly values, as well as a percentage or total changes.
In contrast to time-defined reporting, this form only evaluates data that takes effect from a specific event. This can include reaching predefined threshold values or an insufficient number of agreed performances.
Fincite.CIOS - Software for a 360- degree Investment Reporting
As various as the types and beneficiaries of reportings are: the outcomes are all based on a standardized database. The linking of your customers’ security account data with market data, intelligent algorithms, and self-defined rules are basic functions of our Analytical Engine of Fincite.CIOS.
A proven solution thanks to composable Software Engines
With Fincite.CIOS, financial institutions gain a detailed understanding of their customers, meet regulatory requirements (e.g. MiFID II), evaluate internal key figures such as customer satisfaction or revenue per advisor.
In addition, CIOS can be used to connect numerous market data providers in order to ensure consistent prices within the reporting. The portfolio consolidation in CIOS is performed at custodian bank level, which sets new standards in the field of asset aggregation. Thanks to the multi-asset reporting, non-liquid (alternative investments) can also be included in the investment reporting to obtain a holistic view of client assets. Alongside its high scalability, CIOS also offers you a complete set of pre-defined analyses, including:
- Absolute risk and return metrics such as: VaR, expected shortfall, potential gain, expected upside, expected volatility, relative expected upside, expected tracking error. At portfolio and single asset level.
- Relative risk metrics vs benchmark or liabilities such as: relative VaR, relative expected shortfall, relative potential. At portfolio and single asset level.
- Basic Analysis: More than 150+ risk and return figures available of the shelf, possibility to include custom-build and even proprietary risk and return measures at your discretion.
- Advanced Analysis: Sensitivity analysis, stress tests, What-if analysis, scenario analysis
- Special reporting: ESG (based on environmental, social and government criteria)
Fast implementation – with CIOS banks can build on their existing IT landscape and do not need to replace it. Thanks to digital interfaces (API), the modular software connects to existing systems, extends their functionalities, and maps the findings in a modern frontend. Alternatively, data can be imported in CSV or XML and used as an input.
Comprehensive reports, which can be generated from an individual dashboard, will help for a better understanding of your clients and gain deeper insights into their total assets. Also, they offer new occasions for a conversation and help you intensify the relationship with your customers.
Fincite.CIOS enables you to aggregate the total assets of your customers and present them in a well-structured dashboard.
Advantages of our reporting application:
- 360° view with real-time information about the total assets of your clients
- Clarity whether the risk diversification corresponds to the personal risk profile
- Regional focus on investments
- Distribution of total assets among asset classes
- Transparency on costs and fees
The Fincite.CIOS reporting software gives advisors a digital toolbox to provide first-class financial advice. Thanks to the holistic overview of customer-related data, advisors can react quickly to market changes and give appropriate recommendations for their clients. The Software offers an intuitive overview of:
- Before-and-after portfolio comparisons
- Deeper insights into the customer portfolio (cross-selling)
- CRM data (name, telephone, etc. on request)
- Consolidated view of the customer relationship
- Risk classification (knowledge and experience, suitability protocol)
- Portfolio data at cumulative and individual securities account/account level
- List of transactions
- Individual restrictions
- Portfolio allocation charts, percentages, graphical representation
- List of instruments
- Cumulative performance (also against the benchmark)
- Aggregated assets
- Newsfeed (alternative investments, events, buy/sell recommendation)
With our management reporting application, financial institutions will gain important insights into the overall structure of their customers, the performance of their advisors or branches, and regulatory compliance.
The obtained information can be used to generate sales leads for advisors and execute sales initiatives.
CIOS.Analyze offers the possibility to create a tailor-made reporting based on six important pillars:
- Structure of the portfolios
- Overview of product groups and asset classes
- Top products in stock
- Statistics of top clients
- Early identification of customer risks
- Selection according to client size (AuM) and structure
- Per consultant or branch
- By performance
- Evaluation of assets and development per advisor or branch
- New assets incl. margin development or new customers
Compliance & Risks
- Status on compliance with regulatory standards, strategy conformity and bank requirements
- List of investment limit policy violations
- Of wealth management solutions,
- Portfolio managers and advisors as well as the most important clients
- Overview per consultant/branch
- According to customer structure
- Benchmarking against targets
Was unsere Kunden über unsere Investment Plattform sagen:
“Prospery and Fincite have been working together since 2017. Within only a couple of months, Fincite was able to develop a complete portfolio management solution. We would work with them again at any time!”
Andrew Trythall, Product Owner Prospery / Kendu
“With our partners of Fincite, we could excite some of our clients. We brought intelligence and Insights directly into the portfolios our clients’ customers, by leveraging Thomson Reuters strong data capabilities with Fincites’ Algorithms.”
Christian Kammler, Sales Manager Refinitiv
“Life Insurers need innovative Products to serve customers digitally. The integrated Robo Advisor from Fincite is an excellent solution, which is actively used by numerous renowned financial institutions. Together with msg life we will now offer new opportunities in advice, customer retention and sales to life insurance.”
Milenko Radic, Geschäftsführer Msg life
“Evergreen is aiming for technological leadership in digital financial planning and investing. Fincite’s CIOS is paving the way from our state- of-the-art asset management to a great customer experience.”
Iven Kurz, CEO Evergreen
”OWNLY and Fincite share the vision of a digital private bank and family office. This led to fruitful exchanges about future services and features.”
Nicholas Ziegert, CEO W&Z FinTech OWNLY
”Together with Fincite, we have created a new-generation financial analysis tool. Their innovative thinking combined with their strong focus on financial mathematics led to an impressively efficient tool for our clients.”
Sebastian Napiralla, Director Lampe Asset Management
”The combination of extensive experience in the financial sector with a fresh innovative approach and dedication makes Fincite the perfect partner for us.”
Dirk-Jan Schuiten, CEO Prospery
”With Fincite.CIOS, we can manage complex portfolios automatically. This strengthens the efficiency of our consultants and helps them focus on the essentials: the customer.”