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The strategic edge of embracing structured investments over conventional banking deposits

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Solution for the Private Wealth Industry and Distributors

Automate and streamline your structured product business. From the wealth team of a retail bank to a private banking institution, a family office or a wealth manager, the structured investments shall be easy to access, analyse, manage and execute. In a persistently low-interest-rate environment, investors are seeking more yield and better...

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by Futora
| 09/11/2023 08:00:00

In today’s fiercely competitive financial landscape, being a leader in the banking world entails more than traditional offerings. As banks endeavour to enrich their clientele’s financial journey, the potential of structured investments emerges as a transformative advantage, symbolising a strategic leap beyond regular banking deposits.

But what are the benefits that a bank gains from offering structured investments? Let’s discover them in detail!

Diversification and risk management: structured investments give banks the ability to diversify their product range, allowing clients exposure to a variety of underlying assets, indices, or a hybrid of both. This diversification enables more effective risk management and the ability to tailor investment strategies to align with clients’ risk appetites, ultimately enhancing overall risk-adjusted returns.

Enhanced yield potential: unlike traditional banking deposits that offer fixed interest rates, structured investments provide the potential for higher yields by linking returns to the performance of selected market components whilst still offering capital protection. This dynamic approach appeals to investors seeking the possibility of enhanced returns while maintaining a degree of security.

Tailored solutions for varied client needs: structured investments offer a spectrum of customisable strategies, allowing banks to tailor solutions that align with individual client objectives. Whether clients prioritise capital protection, income generation, or growth opportunities, structured investments can be uniquely designed to cater to each requirement.

Client education and advisory opportunities: offering structured investments enables banks to engage clients in educational dialogues about financial markets, investment strategies, and risk management. By providing valuable insights and education on structured investments, banks can position themselves as trusted advisors, fostering long-term relationships with clients. This educational aspect empowers clients to make informed investment decisions, reinforcing the value of their partnership with the bank.

As banking institutions continually evolve to stand out in a competitive market, offering structured investments isn’t just a strategic move—it’s about leading with innovation and a commitment to your clients’ financial success. Your institution can redefine its position, asserting that it’s not just any bank but a forward-thinking, innovative powerhouse, ready to assist clients in achieving financial excellence.

Are you ready to revolutionise your financial offerings? To learn more about how Futora’s end-to-end solution can help your bank unveil the power of structured investment, arrange a demo today.

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