In today’s Tages-Anzeiger, a supplement delves into the topic “Future of Finance and Investments”. FinGuide was invited to contribute. We decided to address one of our core themes: “Using an Algorithm to Find the Right Wealth Manager?” We explore the possibilities and limitations of employing an algorithm in an opaque market with scarce data.
FinGuide has been demonstrating for several years that we can create real value for our clients with an algorithm. However, FinGuide clients know that the algorithm is just one step in the process of selecting the best wealth manager. The combination with personalized human advice is crucial.
You can find the text below, here is the link to the contribution in the layout of today’s published supplement. Would you like to learn more about our service? Visit our homepage.
Using an Algorithm to Find the Right Wealth Manager?
Algorithms require data. FinGuide has found a way to help clients find the right wealth manager using an algorithm, even in an opaque market.
Whether it’s social media, Spotify, or Google: algorithms analyze our behavior and suggest content that matches our interests. The larger the data set processed, the more accurate the suggestions. Swiss company FinGuide has been using an algorithm for several years to identify the appropriate wealth manager for investors.
Verification and Data Collection
Swiss private banking is opaque. The websites of private banks and independent wealth managers contain hardly any evaluable data. To identify providers that offer real value to their clients, FinGuide collaborates with firstfive AG. Their core competence lies in the detailed analysis of returns and costs of investments. For providers that do not allow their services to be analyzed by firstfive, FinGuide takes over the analysis. Those who pass the return test are then assessed for fair business practices. This particularly focuses on identifying those who operate with hidden costs. Banks and independent wealth managers that also pass this test can join the FinGuide platform. Their offers and various key figures are documented in detail.
Matching
Investors seeking a suitable wealth manager can record their needs on FinGuide’s website. FinGuide has developed a questionnaire for this purpose and refined it over the years. Once the needs are recorded online, the algorithm searches for the best possible matches with the provider data. However, FinGuide offers more than just data analysis: the results of the matching are explored in a complimentary personal conversation, and clients receive all desired information about the potential providers. The goal of the conversation is to identify the two wealth managers that best match the individual needs.
Are you looking for the best wealth manager for you?
- We provide independent and transparent advice.
- We find the best suited provider for you.
- We compare fees and performances for you free of charge.
- Minimum investment CHF 500’000.
Decision
Once numbers and facts are prioritized in the FinGuide advisory process, interested individuals meet their potential advisors from their two top providers in person at the next step. The focus is on whether their needs are understood and if a trusting relationship is established. Afterward, they decide on potentially forming a new business relationship.
Business Model
The consultation at FinGuide is free and yet independent. If FinGuide identifies a suitable wealth manager for clients, a fee is paid by that manager. This fee is exactly the same across all providers, so there are no incentives to steer clients toward a specific wealth manager. The minimum asset requirement to use the service is CHF 500,000.
Can we offer you more information about FinGuide? Please visit our homepage.
