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JUN 28, 2022

Digital to design personalised investment proposals, effectively

Alexandra Tostões

Head of Advisory Service at Novobanco

Reading time: 2 min


Customer centric journey is a multi-sided concept, simultaneously linked to digital transformation and very own clients’ feelings but to be walked through a complex business environment where the investment scope is widening and banks increasingly open up to all those who want to invest, this way democratising investment.

Objectway and Novobanco participated together with a joint speech at the Reinvent Forum organised by Qorus, investigating the key transformations happening in the market – evolving digital platforms for advisory, changing regulations etc. – and how to make use of digital for investment proposals’ design.

Challenges to win

The contemporary scenario poses two main, big challenges:

  • The regulatory environment; MIFID II implementation imposed greater responsibilities and regulatory requirements, within the scope of Governance, Distribution and Monitoring on investment services and products. A retail banking with more than 400 agents can easily interact in 400 different ways with customers. So, the distribution strategy could only be one: Advisory service.
  • The clients; an elderly universe of clients, typically conservative and with scarce to null financial literacy where proximity is key.
    On the other hand, a new generation of clients is rising with their own needs and wants to be provided with digital solutions to invest. But how many have the knowledge to do it alone? How long will they have to analyse market trends, and sites with 4000 funds?

Novobanco wanted to position as the advisory bank for retail clients, reaching out to all those who want to invest, thus democratizing investment through advisory, which is our differentiating point.

Challenges won

To win these challenges, Novobanco decided to look for a partner to develop the advisory service that would supports each customer need and objective on his investment abilities and preferences. Objectway provided a shielded regulatory framework, a technological platform to manage asset allocation and risk, that coupled with advisor’s proximity and support towards the clients due to the bank own geographic dispersion leads to the creation of a hybrid advisory model where is delivered personalised proposals and achieve democratisation.

The first Go Live was done in 4 months, a simple solution was provided to advisors and clients, all the information that allows the former to support the investment decision of the latter by delivering a personalized advisory investment proposal. Clients want to manage their investments but with a recommendation adjusted to them specifically, to their profiles, objectives and at end for them to be able to choose and decide for their preferences.

So next step was integration of the customers portfolios, enabling a look through on the customer portfolio, allowing even more personalization as final portfolio recommended will considerer the client decisions regarding its initial portfolio, new products to add to the portfolio and all decisions that the client takes upon the bank recommendation but, the delivery of the Proposal will be subject to a suitable test within the boundaries of novobanco suitable policy.

To sum up we can say that with Objectway we achieved our goal of democratizing investment through advisory and on top of that, with a personalized approach that, not only distinguish us from the common available proposals in the market but also allows us to keep well serving high value customers with an advisory service totally personalized and adjusted to clients’ needs and objectives incorporating their preferences.

It’s half a year into 2022 now and some so-called “trends” – that are not trends anymore – will increase their pertinence and influence on the investment scenario. Here, ESG leads.

And integration of preferences in terms of responsible investment for customers with greater environmental, social and appropriate management practices or for those who wish to integrate these preferences in their investments is surely something to focus on for the rest of the year and onwards.