Executive summary
Smart Risk Decisions was chosen by a leading European private bank to equip actors of the advisory value chain, from the CIO office to the relationship managers, to help them build personalised investment proposals to their clients with a high-end, high-touch, approach.

Challenges in the wealth management industry
Many recent surveys outline how relationship managers and advisors are critical to client engagement, retention and business value development. Concurrently, these very same advisors dramatically lack time to take care of their clients due to the abundance of administrative and compliance tasks. It is crucial to equip relationship managers in client-facing situations with solutions to leverage their knowledge of the clients, reinforce trust and engagement, enhance their productivity and create more business opportunities.

The need for digitalisation to support advisers
The wealth management industry needs to reinvent the advisory journey in an increasingly complex environment:

• The necessity to differentiate from the competition with high-added value services to attract and retain clients.
• Growing expectations of the end investors regarding in-person advisory transparency and personalisation of the investment proposal.
• Lack of client-facing tools to support the advisory process.
• Lack of client-facing time for the advisor due to an abundance of admin and compliance tasks how to make the most of the time spent with the client?
• A strengthening regulatory framework on risk and ESG makes the suitability process even more complex.
• Rising alternative asset classes with liquidity or data availability issues.

In a nutshell, how can new digital technology and Artificial Intelligence (AI) models augment advisers leverage the time spent with their clients, and scale the human factor?

Solution: Smart Risk Decisions
We deployed our white-labelled web application Smart Risk Decisions to equip critical actors across the advisory value chain:

• The CIO office to design strategic asset allocations.
• The investment advisers are dedicated to UHNW clients for ultra-personalised portfolio construction.
• Relationship managers and Private bankers to serve the HNW and mass affluent segments.

The application provides advisors with easy-to-use and interactive decision-aid features such as:

• Portfolio analytics to understand sources of risk and performance in the client’s current holdings.
• Back-testing features to simulate the impact of past market scenarios.
• Trade simulation to test ideas and evaluate their impact.
• Portfolio optimisation under constraints and preferences to match the client’s profile and goals.
• Before after analysis to illustrate the impact of investment decisions.

Smart Risk Decisions are used at different stages to support the adviser-client relationship: 

• Ahead of a client meeting, analyse the client’s situation and prepare simulations.
• During client meetings, to support the discussion, illustrate the investment proposals with unbiased criteria and onboard the client in the investment decision.
• After the client meeting follow up immediately with automatically generated personalised reports.

Added value
Digital transformation is not only about a great client experience It is mostly about providing added value services through digital channels to portfolio managers, sales teams, advisors and relationship managers to better serve their clients.

Augmenting is not replacing Smart Risk Decisions is, first of all, a digital support to the discussion between an advisor and the end client It allows a paradigm shift from product push to a client-centric advisory experience: 

• Starting the advisory journey from the client’s wealth and expectations.
• Helping advisers figure out the next best action’ for each client depending on their profile, preferences and existing holdings.
• Designing personalized portfolios with a global wealth approach.
• Supporting a '4 hand' investment decision process onboard the end client with an interactive discussion.
• Avoiding the black box effect with a focus on transparency and explainability.
• Providing easy-to-use scenario simulations and analytics to understand the impact of investment decisions.

Smart Risk Decisions helps advisers focus on their client's needs build confidence through transparent and tailored investment proposals hence develop new business by attracting and fidelising clients.