Private Banking 2020
by: Andreas Pusch
Nowadays, after the financial crisis, the private banking sector is in a huge transformation process. Bank clients do not trust blindly their institutions as they did before. High fees and dependency of their advisers will not bring back the confidence. The future will be interactive platforms.
In our analysis, we discovered a need for banking services, which are easy accessible and trustworthy. Several finance platforms (e.g. Betterment, MotifInvesting, Wealthfront) went online that have the power to change the traditional banking industry entirely. In order to meet the needs of the new private banking environment we designed an online platform for institutionals called PrognosD. The next step was scaling down the expert-designed tool towards less experienced customers. It leads to a platform which is time-saving and custom made.
Alike Betterment and MotifInvesting the tool displays several things. You start by selecting which asset you want to include in your personal portfolio. A slider assists you to limit the share of each fund, ETF or asset class. While sliding, an interactive graphic shows immediately the recent performance and calculates past risk-adjusted returns.
In order to limit potential losses, there is additionally the possibility to include loss-protection signals, used by Swiss pension funds (2–3 signals per year and asset class). With these possibility we differ from all other private banking platforms which are targeting only clients with smaller investment plans. Alternatively, you are able to select an already given portfolio so that you do not begin from scratch.
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.