We are excited to present our selection of the most relevant news within the areas of automated financial advice, data intelligence and balance sheet risk.

Automated Financial Advice

Majority of brokers are concerned about the rise of Robo advice. The brokers at Financial Reporters new fintech roadshow were surveyed on their opinions regarding the growth of the automated financial advice offerings. Although 78% of the advisers reported using the fintech solutions in the day to day work and 74% of them claimed these products helped them with their tasks, the brokers voiced concerns about the time it takes to replace the outdated technological systems as well as regulatory challenges. Link 

UK’s Do-It-Yourself Investment platforms (Robo advisors) took £ 17.7 Billion hit on Brexit Concerns. The research by Boring Money indicates the deterioration of DIY investment market in the UK as a result of Britain’s imminent divorce with the EU. According to the CEO and co-founder of Robo-advice platform Wealthify, Brexit has significantly impacted the online investment markets over the past quarter, making the investors more risk-averse. Link 

The evolution of Financial advice. Due to an increased number of transparency regulations, increased automation and the development of fintech, the financial advisory services have become more prominent among the customers. This article highlights the importance of the human component in the financial advice process, effective communication, convenience and customisation. Link 

Fidelity Go won the rankings of Robo Advisors. The report covers the robo advisors Robo Ranking awards held the US in 2019. The competing categories were the performance at low cost, robo for complex planning needs, robo for digital planning, robo for first-time investors and best robo from financial institutions. Fidelity managed to develop a winning platform for robo advice with quality planning tools and easy-to-use website with several features, excluding tax-loss harvesting. Link

Balance sheet risk and data intelligence

IFRS 17: Preparing for the impact and embracing new opportunities. An insightful webinar by Risk.net features a panel discussion among the prominent professionals within accounting, actuarial and quantitative backgrounds. The main topics of the webinar concern the critical challenges of IFRS 17 implementation, the establishment of reliable internal auditing processes, suggested technological updates as well as the value of collaboration across different business areas.  Link. 

Michael Held: SOFR and the transition from LIBOR. Executive Vice President of the Legal Group of the Federal Reserve Bank of New York tells about the coming LIBOR transition, the alternative reference rates and the roadmap of the change. He warns that inaction at the current point in the LIBOR transition would be short-sighted and strongly advises decisive action by everyone in the market to avoid damage to individual firms and the financial system. Link 

Report: Time running out to implement FRTB technology. According to Bloomberg’s head of market risk products, banks need to update their technology platforms and processes as early as in 2019 to allocate enough time to data management testing and model approval before the Fundamental Review of the Trading Book (FRTB) implementation deadline on January 1, 2022. Link 

Positive-Incentive Loans: A new favourite for companies and banks. Positive-incentive loans with rate indexes based on social, environmental and governance (ESG) criteria are exhibiting tremendous growth.  The new investment product, already valued at $40 billion (in 2018), makes a breakthrough in the world of sustainable finance, and it is anticipated to be widely used by European Companies. Link

Five ways how Machine Learning can prevent fraud detection. Machine Learning is the new safeguard for companies’ money, reputation and customer data. The new methods can be used to detect and resolve a threat of fraud by utilising the automatic learning model and transactions analysis. Value Coders describe their fraud detection process and summarise how finance and mobile banking development companies can prevent fraud. Link