Environmental Issues, Social Responsibility and Corporate Governance as Secondary Conditions for Investment

by Dr. Lothar Jonitz

When people try to make sustainable investment decisions as self-decision-makers, reference is made everywhere to the ESG criteria of environmental protection, social responsibility and good corporate governance. An investor willing to invest makes a selection from a number of companies or sectors and invests in those securities that best meet ESG criteria. Ideally, they will have some sort of ...

Models of investment advice (Part 2): Paths to Mass Customization

by Dr. Lothar Jonitz

The match between customer and investment is called suitability. Approaching the details, it becomes clear that only a section of a customer’s investment topics is considered and the collected data is categorised and thus coarsened – also because only a few standard products are available. On the other hand, customised advice as offered by family offices does not require any ...

Models of investment advice (Part 1): Mass customization, Robo-Advisory and the operating model of the Funds Industry

by Dr. Lothar Jonitz

The match between customer and investment is called suitability. Approaching the details, it becomes clear that only a section of a customer’s investment topics is considered and the collected data is categorised and thus coarsened – also because only a few standard products are available. On the other hand, customised advice as offered by family offices does not require any ...

Explainable?

by Dr. Lothar Jonitz

Our solutions provide parameters thru regression analysis and other methods. For end customers such methods are too complex to understand in a short time period. Investment advisors are in a perfect position to deliver suitable narratives for every customer. Such bridging of the gap of explainability is more difficult for robo-advisors. The article describes a growing momentum for explainable ...

Post-Corona Scenario Simulation by tetralog systems

by Dr. Lothar Jonitz

The virus driven lockdown brings with it a massive transformation of working processes. Video conferencing, document sharing, and cloud solutions have been swiftly adopted to keep operations up and running. The efficiency of digital tools has been tested, approved and introduced in mere days. We would like to assume that this precedes a tremendous surge in further digitalization in the years ...

ESG in Investor Profiling

by Matthias Brabetz

When it comes to the integration of the new ESG (Environmental Social Governments) regime into the architecture of investment advice, it is important to consider all phases and aspects of the customer buying cycle. In technical terms, the EU catalogue of criteria known as “ESG taxonomy” is an additional set of auxiliary conditions for portfolio advice. The social and psychological aspects of ...

Case Study: Cooperative banking group on the road towards comprehensive portfolio analysis

by Dr. Lothar Jonitz

How does one integrate a portfolio optimization solution into a core banking system? The migration of all Volksbanken and Raiffeisenbanken to agree21, the new core banking system of the cooperative financial services network, is the largest project of this kind in the group’s history to date. And the magnitude of the project alone was not the only challenge: in addition, to enable a ...

Why is that banking has nothing to do with life?

by Dr. Lothar Jonitz

The financial market creates a pervasive layer of interconnectivity in the world – a global network. For this reason, it exhibits an infrastructure that reflects its own kind of “world logic”. Perhaps this is precisely why the banking industry is stuck in its own patterns of thought like no other: it continually strives to impose its own product logic onto the rest of the world. Yet this ...