The drivers for robo-advisor firms are account minimums which are in the low four-digit numbers, lower fee and demographic advantage. Robo-advisor services can quickly provide customers with well-diversified investment portfolios suitable for their risk tolerance and long-term investment objectives. Due to such a convenient and low-priced service offered by this technology, a number of FIs & traditional investment firms are also turning towards it.
One such addition to the list is Deutsche Bank which launched its maxblue robo-advisor. Maxblue, Deutsche Bank’s online investment platform, is expanding its services to include the Anlagefinder robo-advisor. The robo-advisor uses algorithms to put together individual portfolios for investors who are looking to make investment decisions without taking advantage of advisory services. Anlagefinder is suitable for experienced and first-time investors in equities alike. It informs clients of potential investment-related risks, such as an excessive focus on certain sectors, and highlights investment alternatives. The tool is free for maxblue clients and was developed in cooperation with FinTech company Fincite.
Markus Pertlwieser, Chief Operating Officer (COO), Private & Business Clients at Deutsche Bank said in the press release, “With our Anlagefinder robo-advisor, clients can professionally put together their portfolios and optimize their investment outcomes with just a few clicks.” In particular, the system makes it easy for first-time investors in equities to get started. “Anlagefinder provides clients with extensive support in making investment decisions with the help of tutorials and comprehensive financial market information,” said Pertlwieser. “This investment tool helps Deutsche Bank position itself for the digital natives among its clients who are keen on seizing the opportunities offered by capital markets,” he added.
With the help of the new tool, the investment process will consist of just a few steps, the first of which is settling key questions such as investment objectives, terms and risk appetite. Based on the client’s personal opportunity/risk profile, Anlagefinder will come up with a customized asset allocation in the second part of the process. Clients are then free to use this asset allocation in their investment or change it as they see fit. This will give the clients the opportunity to rule out certain asset classes.
Anlagefinder offers a selection of securities in the respective asset class based on criteria selected by the client, such as rating, product costs and performance. Those asset classes may include actively managed investment funds as well as passively managed exchange-traded funds. As part of the individualized portfolio composition, the tool notifies clients if their allocation focuses too much on certain sectors, for example. In the final step, clients can use maxblue to place securities orders. Anlagefinder will initially be available for use with internet browsers. An app version is scheduled for release in early 2016. Additional enhancements, such as peer-to-peer comparisons and risk management, are also slated to appear in the first half of 2016.
maxblue is Deutsche Bank’s online investment platform. Since 2001, maxblue has been making it possible for private investors to trade securities directly and independently.
About Deutsche Bank:
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small & medium-sized businesses and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia-Pacific.