The future success of the financial industry, to a large degree, resides on the pillars: trust, transparency and client-enablement.Technology paves the way for an effective implementation of these ingredients of modern banking. Against this backdrop, Avaloq has gone into partnership with IBO to enable performance rankings in banking, and to increase trust in financial services.
Over the past decade, their reputation has become even more important for banks and wealth managers. “With consumers being finely attuned to issues around the financial industry, banks are looking for ways to demonstrate commitment to their clients - with the right products, by portraying professionalism, and especially through increased transparency,” says Francisco Fernandez, Avaloq’s Group CEO. “It is technology that facilitates trustworthy banking. The right technology platform ensures regulatory compliance. Standardised processes reduce the element of human error and risk of fraud and manipulation, and innovative tools allow users to assess the performance and risk of their portfolios.”
Investment performance is an area with significant relevance in this respect. The trend is towards allowing users to compare portfolio performance against similar clients with identical risk profiles to facilitate improved risk monitoring and greater insight into portfolio performance.
IBO - an award-winning solution to compare and rank investment returns
This is where Avaloq’s new partnership with IBO, the two-time winner of the WealthBriefing Swiss Awards, sets in: with the IBO Performance Watcher, banks as well as their clients can compare portfolios one-to-one, and understand how their portfolio performs in comparison to portfolios of other wealth managers. The software not only provides clients and their bank advisors with the ability to assess multiple portfolio returns, but also takes a client’s risk appetite into the equation. Risk monitoring is improved, as greater insight into portfolio performance is provided.
“Due to various negative events, trust - the ultimate glue of successful business relationships - in the financial industry began to crumble. Crucially, providing the ability to assess the performance and risk of portfolios not only benefits the bank customer, but also the bank itself,” Marc Lussy, Head of Business Development & Digital Marketing at IBO, explains. “Bank advisors and investors are constantly kept informed. Asset managers can anonymously compare portfolio performance against similar clients with identical risk profile. And, most importantly, asset managers regain trust by increasing transparency and enabling clients to rate and compare portfolio performances.”
Avaloq has fully integrated IBO‘s professional monitoring and reporting tool into the Avaloq Banking Suite. All banks using the Avaloq Banking Suite can license IBO’s Performance Watcher. IBO is also exploring further integration possibilities with Avaloq by building digital banking functionality using the Avaloq Developer Platform.