FinaMetrica partners with Swiss private bank to develop robo-advice tool

FinaMetrica partners with NBK Private Bank Switzerland to develop a new robo-advice tool for NBK's private bankers in the next few months

FinaMetrica, an Australian risk tolerance specialist firm, has partnered with NBK Private Bank Switzerland to develop a new robo-advice tool for NBK’s private bankers in the next few months.

FinaMetrica co-founder and director Paul Resnik said that the robo-advice tool has been designed to deliver suitable financial advice for NBK’s clients.

As part of the collaboration, the Swiss bank will be using FinaMetrica’s suitability tool kit, a 15-minute test that looks at the investor’s risk tolerance through a number of questions.

The robo-tool is based on a 12-question scientific risk tolerance test that includes investors’ time horizons, capacity for loss, risk tolerance, and knowledge of investments.

FinaMetrica said that the end scores will be mapped to a suite of international multi-asset portfolios.

The tool will provide a wide range of financial and investment management services to its private clients.

Resnik said: “NBK has paired with FinaMetrica given our extensive experience developing suitability tools based on an established scientific testing methodology grounded in more than a decade of research and development.

‘NBK’s private banking clients on average invest close to $US5 million, despite the popular myth that most people using robos invest much smaller amounts of money.

“We are convinced that robo advice will have its most effective application in conjunction with personal advisors working with existing enterprise clients.

“We expect that every major financial institution will have a form of robo advice in the next two years. We believe that we offer the most defensible and reliable suitability tool set, which is at the heart of good robo advice,” Resnik added.

NBK spokesman said: “This robo advisor delivers a multi-asset portfolio that meets most clients’ needs. The process still provides flexibility to fine tune recommendations to meet customers’ individual circumstances.”