We like to think things new and different. That’s why tetralog attaches great importance to research and innovation: We keep asking ourselves which financial mathematical concepts should find their way into advising and informing private investors. In addition to the availability of the necessary data and calculation cores, an intuitive and easily comprehensible visualization is particularly important. Without this, the concepts often remain abstract and incomprehensible. The presentation of portfolio risk and the diversification of positions in the portfolio is now established as a standard. This could only be achieved by constantly refining the presentation and explanation in order to separate the essential and comprehensible aspects from the technical and formal “expert only” aspects. In doing so, we always keep in mind the goal of improving investment advisory processes and supporting our clients in practice.
Experience investment in a new way – with our Spider-Visualisation
We try to depict complex relationships in such a way that even a private investor without in-depth knowledge understands them. In doing so, we repeatedly succeed in closing seemingly accepted methodological gaps. As early adopters, we also integrate new technologies into our software modules as early as possible.
Inspired by the gamification idea and the gesture control of multi-touch screens, we developed the so called “spider visualization” for the portfolio: an interactive graphic that for the first time brings together immaterial values such as portfolio, diversification, risk and return in a single representation – and makes them tangible in the digital world.
Focus on the customer: Tools in the service of mass customization
We developed concepts at an early stage that are considered standard today. For example, in 1998 we designed the first digital Robo Advisor, the DAB Investment Advisor. This consisted of a conclusive digital advisory route, from determining the investor profile to selecting the investment strategy and suitable products through to the actual transaction. Another example is the integration of Value at Risk into private client advisory services, also a concept previously only used by institutional investors. A current trend, of which we have been convinced for many years, is the examination of “suitability” at the portfolio level, in the sense of a portfolio risk class. This extends or replaces the previous advice based on product risk classes, which ignores the findings of portfolio theory on the subject of diversification. Instead, the deposit risk class focuses on the customer’s interest, looks for a suitable portfolio instead of a list of permissible products in the advisory process and also takes the bank’s sales interest into account.