01June 2019 News Update
This June, we analysed three topics that gain prominence in the context of rapidly digitalising financial industry. As widely known, the machine learning solutions become more widespread in addressing the operational and compliance issues within banks and insurers. However, we highlight that the interpretability of such models is as relevant as their performance. Moreover, in the context of maturing robo-advisory offerings, we see that the common strategy is to focus on the space of clients which are underserved by traditional financial advisors. Finally, we look into the process of building trust by the emerging challenger banks, which may threaten the positions of the centuries-old incumbents in the industry of tomorrow.Read More
02Eight powerful tips for managing complex implementation projects
Managing implementation projects becomes more difficult as their technical complexity progresses. The challenges faced by project managers may include the lack of technical expertise required in quality assessment and staffing activities, failure to address the communicative issues or letting go of the underperforming project staff. This article suggests eight powerful tips for leading convoluted IT implementation projects, which would protect the workflow from the common pitfalls and help you reach your goals.Read More
Financial advice is being digitalised and is increasingly provided on an automated basis. Download our summary of the latest developments within this exciting field.Download
There is a number of challenges associated with portfolio construction based on historical data. This three-part article series explores some of the most common issues attributed to the model-based portfolio optimization: the sensitivity to changes in data, large variations in portfolio weights and the bad out-of-sample performance.
As machine learning methods grow in use and popularity, we explore yet another dimension of wealth management that our experts consider fit for applying such frameworks. In this article, we deploy hierarchical clustering to find more consistent ways of predicting the relative future performance of funds.
The modern wealth management industry still relies on the 50-year-old approaches to portfolio management, widely popularized by Markowitz's Modern Portfolio Theory (1952). Despite heavy criticism within the academic circles, the alternative methods remain undeservingly overlooked in practice. In the context of the modern leap for hyper-customization, we look into one of the alternatives to Modern Portfolio Theory in greater detail - the Utility-based approach.
In the second part of the article series, we outline a framework utilising both the Self-Normalizing Neural Networks (SNNs) and the logistic regression for bond liquidity classification. This framework is subsequently applied to the Swedish bond market in an investigative case study.
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We improve decision making under uncertainty
Our work empowers millions of people to make, or benefit from, informed financial decisions under uncertainty. Asset liability management, capital requirements and automated financial advice - everything we do helps support our vision that everyone should have access to world class risk management tools.