The investment advisory process in detail – step by step with our aixigo modules:
Step 1: Selection
This is about finding the right client – e.g. for example, by evaluating the individual client custody, by analysing the structure of these custody accounts, the associated securities master data or risk information. Subsequently, a needs analysis for investment advice follows, or the client is addressed to receive a complete consultation.
Step 2: Risk profiling
Proper risk means proper advice. Here, we make particular use of the experience of the RWTH Aachen Institute for Decision Research: the institute is intensively studying behavioural finance. This branch of research analyses investor behaviour in investment decisions and meanwhile examines the relevance of psychological behaviours. aixigo deduces important software functions from the research results, in particular a proven method for determining a suitable risk level for a specific client.
Step 3: Target acquisition
What are the basic principles of your digital investment advice? What individuality do you expect when designing an investment proposal? Since MiFID targets are important, but what are the targets? How many targets should there be? What kind of information is important about these targets? We support you with different concepts for the collection and classification of client targets.
Step 4: Analysis
How has the portfolio developed? Were the set targets achieved? Which targets have been achieved and completed? These are the questions that every client asks, which are, however, often so difficult to answer. With the analysis functions from aixigo:one, you will always make a good impression concerning personal advice, but also with respect to self-consultation. The scope can be tailored exactly to the requirements of the consultation segment.
Step 5: Recommendation
What sounds unspectacular at first represents the whole point for the expert of regulated investment advice. In what way does the recommendation based on client information develop? Depending on the business area and institution, different combinations of the aixigo modules lead to individual solutions. One of the basic questions is whether the consulting tool should steer, lead, support or secure the consultant.
What does it mean exactly?
A practical case makes this clear: does the consultant see all the products that the client can buy in the consultation or only those for which suitability is given? Lack of suitability can be resolved by information. This opens up new possibilities for clients and consultants. At the same time, however, this increases the consulting effort. This is because the company achieves high efficiency when only things that are directly feasible (because it is appropriate) are recommended.
The recommendation also includes discussing which principles are “right” for your institution when it comes to “identifying” a suitable portfolio. Quantitative methods (Markowitz etc.), qualitative procedures (quality portfolio) or even a mixture of both? aixigo masters the complexity of this topic completely and is a pioneer in the development of such processes.
Step 6: Product Selection
Clients often do not buy all products out of the sum of recommendations given (unfortunately). This has an impact on the documentation and the settlement process. Here we support your advisor by tailoring his specific functions to your transaction.
Step 7: Documentation
aixigo creates words from data. With our technology for investment banking we are able to generate very variable plain text documentation in a clear language from the algorithm and the consulting process. In doing so, we are very flexible, for example with regard to the time of documentation: Does the documentation build up step by step in the course of the consultation or does the application collect the documentation data during the consultation?
We find that a documentation should be more than minutes. A business card and expression of your consulting service. That is our aspiration, which we implement individually for each client.
Step 8: Order
To further increase efficiency, your WP service provider or your WP system can be integrated into the process. This allows the consultant to go straight into the process from product selection and its documentation. Individually tailored to your needs, we use, for example, your task system, a task manager from our solution portfolio or individual solutions.