How Banks Are Digitalising Advisory Services
The crown jewel of banking – wealth management – is undergoing a wave of digitalisation. Several platforms now offer solutions. Quirin Privatbank, for example, has opted for software designed to turn financial advisory into a client experience.
Ivica Jankovic, Quirin Privatbank:
“In my more than 20 years of professional experience, I’ve always seen wealth planning as a very dry, mathematical construct. But now we’re creating a true advisory experience.”
Few areas in banking are seen as both as demanding and as lucrative as the management of high-net-worth individuals. This segment is undergoing a transformation in many ways. One generation is passing its wealth on to the next. With demographic shifts comes increasing pressure for automation. The inheriting generation expects a different, more digital service.
Some institutions are responding with specialised solutions – among them, Quirin Privatbank. Since 2024, the Berlin-based institution has been using software from the Swiss wealth and insurtech company 3rd-eyes analytics. The tool enables the capture of clients’ financial goals and aspirations, calculates paths to achieve them, and presents them in a visual format. Quirin Privatbank, which operates on a fee-based model, places a strong emphasis on financial planning.
Retirement Goals
“The heart of our advisory service is connecting the client’s current wealth situation with their future objectives,” explains Ivica Jankovic, Deputy Branch Manager in Frankfurt. “Quirin Privatbank stands for an academically grounded investment concept,” Jankovic continues. In meetings, the advisory team seeks to determine what the ideal level of risk must be in order to meet those targeted goals.
After collecting all relevant data on the client’s circumstances and financial aspirations, the software shows how their wealth is projected to develop over time and whether their financial goals are within reach. These goals might include having enough funds for early retirement or for extended travel in later life. Potential care costs can also be factored in. The software can incorporate a client’s current portfolio allocation, but also model how wealth might evolve if, for instance, the equity allocation were increased.
“A key advantage of 3rd-eyes is that it factors in market volatility,” says Jankovic. “Most programmes only offer a linear forecast, where the average equity return is simply added on year by year. But this overlooks the element of risk.” For example, if stock markets plunge during the withdrawal phase, clients might miss out on a recovery because they continue to sell into losses. “A purely linear equity assumption should always be approached with caution,” warns Jankovic. Historical data on market returns and volatility has been compiled by Quirin Bank’s portfolio management team and integrated into the software.
Creating a True Advisory Experience
The visualisations can clearly show, for example, that starting retirement with a higher equity allocation can help build greater wealth, the advisor notes. It also illustrates that even in the worst-case market scenario, the client would be better off than if their assets simply sat idle in a bank account. The programme factors in taxation, inflation, fees, and the bank’s advisory fee when calculating potential returns. “We deliver precise net values here,” Jankovic emphasises.
Reflecting on his experience, the advisor concludes: “In my more than 20 years in the profession, I’ve always seen wealth planning as a dry, mathematical construct. But now we’re creating a real client experience.”
Original article: FONDS professionell – in German only
Find out more: Solution for advisors
