Knowledge Base Articles
Part III - Portfolio Construction - The Real World Analysis
In the third and the final part of our “Portfolio Construction” article series, the findings of the previous sections are applied to a broader and more realistic set of assets to evaluate the performance of the proposed methods against more conventional techniques.
Part II - Portfolio Construction - Sampling & Optimisation
The second part of the “Portfolio Construction”-series explores whether introducing parameter uncertainty to the model would improve the out-of-sample performance of the optimal portfolio. Additionally, the article proposes and tests two adjustments to regular utility optimisation.
Part I - Portfolio Construction - Parameter & Model Uncertainty
There is a number of challenges associated with portfolio construction based on historical data. This three-part article series explores some of the most common issues attributed to the model-based portfolio optimization: the sensitivity to changes in data, large variations in portfolio weights and the bad out-of-sample performance.
Enterprise Cloud Native: Reaching for the Stars or Pie in the Sky?
Modern cloud computing, which in absolute timespan is still very young, has become a pretty much ubiquitous facet in our lives. Most of us now store a majority of our personal data on numerable cloud servers operated by huge companies who are now household brands. Any remaining confusion in nomenclature and etymology doesn’t reside with the young. For those of us old enough to remember floppy disks, we can still get confused by terminology. Here we look into the history and future of cloud computing.
Paradigm Change for Robo-Advice
A multitude of factors can drive paradigm change. Technological innovation, improved methods and changes in demand are all common instigators of change. While all the latter means would be described as evolutionary, the impact of Covid-19 is revolutionising how we live and interact. Out of necessity, we are now deeply engaged with digital services that we hadn’t even heard of a few weeks ago. This digital awakening creates highly fertile ground for the next paradigm in wealth and financial advice. While the first wave of robo-advisory solutions aimed at promoting greater inclusion, the next wave will focus on digitally transforming the products serving traditional channels.
It’s the Customer, Stupid! How to Make Your Digital Financial Advisor Awesome.
The financial sector continues to evolve at a rapid pace. As the digital-native generation Z open their first bank accounts and cloud-native offerings rise amidst the COVID-19 pandemic, financial institutions feel an increasing pressure to adapt to new customer demands. Although it is fair to claim that online banking services are widely available in western countries, wealth management services remain a privilege for the most fortunate. However, it has become more apparent that these services have a fair chance of being next in line to experience a dramatic transformation. In this blog entry, we discuss how recent technological advancements could result in significant changes to digitalised customer journeys in wealth management.
How Social Distancing Contributes to Building Trust in Digital Financial Offerings
In recent weeks, we’ve witnessed a dramatic change in routines for most industries globally. This has revealed a brand-new factor to business continuity – the flexibility to conduct business remotely. Despite lockdowns, the financial sector has continued providing services to consumers and businesses, supporting distressed economies and adjusting to the rapidly changing demands of their customers. A series of webinars, hosted online by Innovate Finance this year, has revealed several emerging trends within the space. One of the most intriguing tendencies is the forced shift towards digital services among consumers and SMEs. Financial technology has become instrumental for supporting people in their daily economic decisions, affording providers of digital offerings an unprecedented opportunity to deliver and build trust. We believe, therefore, that this change is likely to have a lasting impact on the industry in the aftermath of the pandemic.