How the next InvestTech generation, the eAsset Managers, disrupt finance industry’s’ wealth management
Expert Advisors find themselves outdated as a new breed of digital fund management – called eAsset Management solutions – enter stage to roll up the institutional market.
Robo investing, robo trading, algo trading, expert advisors or quants – these terms stand for automated trading systems that provide computer automated execution of investment strategies.
After years of following the emergence of automatic trading systems from a distance a tipping point has been reached:
There is no getting around InvestTechs, the next generation of institutional investment solutions. A part of the FinTech family these technologies promise to stir up the sluggish investment business by providing new cost effective, risk oriented and lucrative products using artificial intelligence that copes with and leverages of the big data bucket.
With tremendous consequences for asset managers: The future asset manager will be an eAsset Manager, an expert for smart quantitative digital wealth planning. He will utilize a sophisticated software solution that combines profound knowledge of digital technology (soft / hardware) with finance in an unprecedented way. By doing so he will have access to entirely new dimensions of risk management and bespoke services and allow instant individually tailored risk and investment strategies for index funds, pensions, stock or commodity markets.
InvestTechs that target B2B segments such as the Swiss SpeedLab have set out to revolutionize the way wealth managers do their business. Founded in 2014, SpeedLab focusses on development of intelligent quantitative investment management solutions. The company’s eAsset Management solutions include complex Multi-Asset-Forex products which provide its institutional clients digital products with substantial cost, management and differentiated risk management benefits.
It can be observed that the greater massage has been received by institutional players in the German investment community. According to German Fonds Professionell Magazine banks such as the private bank Berenberg have recently launched InvestTech acquisition of and development programs. The bank just announced it will continue to improve its investment management processes using overlay management to advance its asset management trajectory in Switzerland, France and Benelux countries. The bank plans formation of overlay & liquid alternative teams in Hamburg and its Chicago based US subsidiary.
Doubters or opponents of the InvestTech wave will find that contrary to their fears current portfolio management approaches are focused on augmenting asset management’s value preposition rather than replacing asset manager jobs. While most InvestTechs such as the American Betterment target end consumers, only few companies such as SpeeLab provide eAsset Management B2B solutions aim to strengthen primarily the wealth asset management’s core business, client loyalty and investment product range.