MY FINANCIAL ADVISOR IS AN ALGORITHM
What we are going to talk about
Three different models for financial advisory ! My financial advisor has an
algorithm ! My algorithm has some
financial advisors ! My financial advisor is an
algorithm
Where it's at: Clients
LESS TRUST, MORE AUTONOMY
It's the stupid economy
Guilty by association
http://flic.kr/p/bhuqvr
Whom do you trust in financial matters?
Source: Million Dollar Round Table, Financial Harmony Study 2011
Source: Million Dollar Round Table, Financial Harmony Study 2011
Whom do they trust in financial matters?
Democratization of Information
WHY DO WE STILL NEED FINANCIAL ADVISORS?
We became our own travel agents, insurance brokers, now we are learning to use our cell phones to triage our own bodies.
The process of financial advisory
Finances are serious and complex.
BECAUSE IT'S COMPLICATED
A solid financial plan is not a matter of drag and drop.
Model 1
PERSONAL ADVISORY ON INTERFACE STEROIDS
Model 1
MY FINANCIAL ADVISOR IS HAS AN ALGORITHM
! I am digital. ! I tend to procrastinate
financial planning.
Our Research Project
A ROOM FOR BETTER FINANCIAL ADVISORY
It’s digitally enhanced. And face to face.
Question 1
WHAT MAKES AN ATTRACTIVE ROOM?
A room that supports attitudes like ! confidence ! privacy ! curiosity
Architecture & Interior
WE CLASSIFIED ROOM SCENARIOS
Konzept_01_Idee Wandmöbel 02 Konzept_01_Wandmöbel 01
Konzept_01_Idee Traverse
Konzept_01_Idee Faltmöbel
Konzept_01_Ideename Konzept_01_Idee Holzlamelle/ Textil- Glas
Konzept_01_Idee U-Profil
Konzept_01_Idee Steckplatte
Konzept_01_Idee Leinwand
Konzept_01_Idee Kürbis
Konzept_01_Idee Dach
Konzept_01_Idee strechbare Wand
Konzept_01_Idee Lampe 01
Konzept_01_Idee Babybel Sessel
Konzept_01_Idee Aufzug
Konzept_01_Idee Perle
Konzept_01_Idee Wohnsessel
Konzept_01_Idee Konus Drehtür
Konzept_Glocke_Ring_klein Konzept_Glocke_Ring Konzept Raummöbel_Rahmen_klein
Konzept Sphäre_rund_Glocke
Konzept Sphäre_rund_schwebend
Konzept_01_xxx Konzept_Picknickbank
Konzept_Raummöbel_Rahmen_Textil
Konzept Sphäre_rund_Innenring
Konzept Rundsphäre_Wall
Konzept_Gürteltier
Konzept_Raummöbel_Rahmen_TextilKonzept_Raummöbel_Faltung
Konzept_gefalteter TischKonzept_Trolley
Konzept Sphäre_eckig_Holz
Konzept_Raummöbel_ScheibeKonzept_Trolley_Auffalten
Konzept_Sphäre_Facetten
Konzept Sphäre_rund_schwebendKonzept Sphäre_schwebend
Konzept Sphäre_rund_Eingang 1
Konzept_falbarer MonitorKonzept_Markise
Konzept_Konferenzraum
Konzept_Schlauch
Konzept_Raummöbel_Thron/ HalbeiKonzept Sphäre_rund_Modul
Konzept_01_xxx Konzept_Drehmarkise
Konzept Raummöbel_faltbar_groß
Konzept_Raummöbel_umwickelt
Konzept Raummöbel_Rahmen
Konzept Raummöbel_faltbar_klein
Konzept Raummöbel_integrativ Konzept Raummöbel_Rahmen_Module Konzept Raummöbel_Rahmen_VariantenKonzept Raummöbel_Gestell Konzept Raummöbel_Rahmen_großKonzept Raummöbel_Rahmen_klein Konzept Raummöbel_integrativ Konzept Raummöbel_Rahmen_integrativKonzept Raummöbel_Rahmen_integrativKonzept Raummöbel_Rahmen_integrativ
Konzept_01_Idee Inselprinzip
Konzept_01_Idee Lampe 02
KABINE(geschlossenerRaum)
RAHMEN(Bauklotzsystem fest)
EINZELTEILE(System frei)
BAND
MÖBEL(freistehend)
DECKEL
BLASE
RAUM IN RAUM
FÄCHER
KONFERENZ
DACH
SCHLAUCH
AUFZUG
LEINWAND
Konzept_01_Idee SaunaKonzept_01_Idee Deckel Konzept_01_Idee Schachtel
KONZ
EPTI
DEEN
ÜBE
RSIC
HT
Architecture & Interior: Concept “Bracket“
Architecture & Interior: Concept “Bracket“
Architecture & Interior: Concept “Bracket“
Architecture & Interior: Concept “Bracket“
Architecture & Interior: Concept “Bracket“
Prototype of Advisory Room
Question 2
WHAT KIND OF DIGITAL DEVICES?
Devices that support the process of financial advisory face to face.
Digital Devices
A multitouch table for profiling and product selection. ! It supports the interactive
process between advisor and client.
Digital Devices
A digital wall to permanently provide overview: ! Timeline ! Agenda ! Structure ! Organization
Question 3
WHAT’S A NATURAL INTERFACE?
An interface that advances ! comprehension ! inspiration
Circle as main navigation element.
Circle becomes a multifunctional biomorph interface element
The Agenda shows up on the video wall
The Agenda shows up on the video wall
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Profiling: Step „Life Situation“
Model 2
NETWORKED FINANCIAL ADVISORY
MY ALGORITHM HAS SOME FINANCIAL ADVISORS
! I am social. ! I‘m used to information and
interaction online.
Advice is collaboration.
A COMMUNITY OF FINANCIAL ADVICE
! I can learn about investing ! I manage my plan ! I get input from family, friends
and financial professionals.
Advice is collaboration
Financial advisors
Accountant
Attorney
Spouse
Children
Investment decisions
Tax advice
Estate planning
Goals and finances
College savings
Advice is collaboration
Pete Smith: Jim, I’ve just taken my first job with a 401(k) plan. I’ve shared my retirement plan with you. I know you understand this stuff. Can you have a look?
2012 2022 2032 2042 2052 2062
Pete’s career
Pete’s retirement
Pete’s 401(k)
Advice is collaboration
Pete Smith: Jim, I’ve just taken my first job with a 401(k) plan. I’ve shared my retirement plan with you. I know you understand this stuff. Can you have a look?
Jim Smith [Brother]: You’re doing the right thing by starting to save now. Make sure you find out about the other investment options in your plan, though. Right now, your contributions are going into a money fund. Also, you should think about saving for Robbie’s college education, too.
2012 2022 2032 2042 2052 2062
Pete’s career
Pete’s retirement
Pete’s 401(k)
Robbie’s college
Advice is collaboration
Pete Smith: Jim, I’ve just taken my first job with a 401(k) plan. I’ve shared my retirement plan with you. I know you understand this stuff. Can you have a look?
Jim Smith [Brother]: You’re doing the right thing by starting to save now. Make sure you find out about the other investment options in your plan, though. Right now, your contributions are going into a money fund. You should think about 529s for Robbie’s college education, too.
Pete Smith: Where can I find out about that?
Jim Smith [Brother]: My broker, @George.Jones, set up the accounts for my kids. Friend him and he can tell you how it works.
2012 2022 2032 2042 2052 2062
Pete’s career
Pete’s retirement
Pete’s 401(k)
Robbie’s college
Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you might be able to help me with investments for my son Robbie’s college.
2012 2022 2032 2042 2052 2062
Pete’s career
Pete’s retirement
Pete’s 401(k)
Robbie’s college
Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you might be able to help me with investments for my son Robbie’s college.
George Jones [Advisor]: Happy to help. You should consider your state’s 529 plan so your contributions will be tax-deductible. Start saving $200 each month, and you can increase it with your raise next year.
2012 2022 2032 2042 2052 2062
Pete’s career
Pete’s retirement
Pete’s 401(k)
Robbie’s college
Robbie’s 529
Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you might be able to help me with investments for my son Robbie’s college.
George Jones [Advisor]: Happy to help. You should consider your state’s 529 plan so your contributions will be tax-deductible. Start saving $200 each month, and you can increase it with your raise next year.
George Jones [Advisor]: Since your son will be entering college in 16 years, I recommend a growth-oriented approach, with a fixed income fund for balance.
2012 2022 2032 2042 2052 2062
Pete’s career
Pete’s retirement
Pete’s 401(k)
Robbie’s college
Robbie’s 529
Advice is collaboration
Pete Smith: Hi, George. My brother Jim said you might be able to help me with investments for my son Robbie’s college.
George Jones [Advisor]: Happy to help. You should consider your state’s 529 plan so your contributions will be tax-deductible. Start saving $200 each month, and you can increase it with your raise next year.
George Jones [Advisor]: Since your son will be entering college in 16 years, I recommend a growth-oriented approach, with a fixed income fund for balance. Pete Smith: That looks great. How do I get started? George Jones [Advisor]: You can open an account online at
2012 2022 2032 2042 2052 2062
Pete’s career
Pete’s retirement
Pete’s 401(k)
Robbie’s college
Robbie’s 529
http://www.myState529Plan.org.
Engagement is value for the advisor.
SOCIAL FINANCE OPTIMIZES ADVICE
! I know right away when my client’s plans change.
! I see their whole financial picture.
! I have many more opportunities to bring value to the relationship.
Model 3
THE
ALGOVISOR
MY FINANCIAL ADVISOR IS AN ALGORITHM
! I am mobile and social. ! I accept my data being
collected and used if it serves me.
! I have no time or motivation to become an expert in investing.
Choices, choices, choices…
Find the best IRA and plan my retirement? See what people are tweeting #SXSW?
SO HOW CAN AN ALGORITHM HELP ME?
By being ubiquitous yet unobtrusive.
Advice is based on data.
AN AUTOMATIC FINANCIAL ADVISOR
! I don’t want to learn about investing.
! I don’t have time to manage my plan.
! I trust the Algovisor that knows more about me than any financial advisor ever would.
“Because investing is very individual and personal”
SO MANY ALGORITHMS ALREADY DO
The advisor needs to know my life, my goals, my finances.
They know more than I would tell my financial advisor.
The all seeing Algovisor
The Algovisor uses MY interface
Sylke, you cancelled your trip to Australia. I am going to move the funds we set aside for that into your xyz account. Okay?
I will allocate the funds according to our current portfolio model. Do you want to review the trades I am proposing before I buy?
Yes
Sure
Great. I sent them to the Algovisor App, along with some details about the individual funds.
OK
Thank you for coming
! Download slides www.mediaman.net/algovisor
! Contact [email protected]
#SXALGOVISOR