LifeCycle Portfolio Builder: the financial well-being above all

When it comes to savings and investments, financial institutions still enjoy enormous consumer confidence compared to young Fintech companies. In order not to lose this trust, which represents a real asset, it is important to work on the quality of the service. Compared to other industrial sectors, in fact, the financial one usually seems to be perceived as not customer oriented.

Banks and insurance companies have a wide margin of growth in terms of personalization of the service. Until now financial products have been pushed by banking and consultant networks mainly based on commercial considerations, without being tailored to customer needs.

Customer who, in the long run, ends up feeling neglected.

Banks and insurance companies can take the regulatory cues of Mifid2 and IDD to work on customization and thus increase service quality.
The LifeCycle Portfolio Builder serves precisely this purpose: it is a software that makes the customer’s experience unique, because it cuts the offer on its real life needs, creating a relationship between the company and the customer.

 

LifeCycle Portfolio Builder: how does it work?

The LifeCycle Portfolio Builder is an advanced portfolio building engine that composes personalized and dynamic portfolios combining investment and insurance products.

The engine identifies the “life-cycle point” of each customer. It identifies where in the life of the customer, the customer actually is and therefore reflects the needs, objectives and risks (related to health, family, work, economic sphere).

The backbone of the LifeCycle Portfolio Builder is the Monte Carlo simulations of the possible scenarios and the subsequent verification, in the different scenarios, of the behavior of different combinations of financial and insurance products.

The final step is to define the optimal personalized mix of investment products, insurance and financing that minimize risk. The client’s individual portfolio thus results from an optimization of customers’ financial well-being, considering both assets and potential liabilities. The best mix of products is therefore suggested as a Next Best Action to the relationship manager. Over time, the strategy rebalances based on trigger events (regularly, for example every k months, or at check-up with the relationship manager, following market movements, or SideKYC warnings)

 

Benefits of the LifeCycle Portfolio Builder

  • Create personalized advice on the entire asset sphere, implemented with standard products.
  • Submit a real portfolio check-up to customers.
  • Engage customers with simulation tools.
  • Enhance smart robo-advisor solutions.

 

Virtual B Fintech solutions

Virtual B has been working for years in the financial sector, with a close focus on data and data analysis. Our experience has led to numerous solutions that generate value and solve issues for financial and insurance intermediaries.

LifeCycle Portfolio Builder is the solution developed by Virtual B for banks and insurance companies. LifeCycle Portfolio Builder is able to identify the best financial products that optimize the financial well-being of customers

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