Knowledge Base Articles

Personal Accident Insurance: Would My Savings Suffice?

Determining whether one’s funds would be sufficient to sustain their lifestyle is vital for everybody. At Kidbrooke, we provide the technology that enables everyone, not only the most fortunate, to plan their financial future reliably, securely and accurately, while at the same time enabling financial advisors to deploy their most valuable asset, human advisor time, in the most efficient way possible from a business and revenue perspective. A step outside the HNWI space often leads to the place where tools offered by the market-leading financial institutions fail to provide adequate help to the customers planning their financial lives or the lives of their families. Today’s case study examines a real-life experience of a Swedish family who struggled to receive adequate help from the local wealth management service providers.

Skandia Case Study II: Building Channel-Agnostic Wealth Experiences

Founded in 1855, Skandia is one of the indisputable market leaders in financial advisory services within the Nordics. Throughout its long history, the institution has relied on the expertise and experience of its financial advisors, who earned trust and appreciation from thousands of customers over the decades. Today, as the company transitions to a multichannel, digitally empowered business model, a focused area is the delivery of a superior service through all available channels – from traditional face-to-face meetings to digital financial experiences. Therefore, the insurer strives to build communication channels in a digital space that would match the physical experiences in engagement levels and even improve the service quality in a way that has not been achievable before.

OutRank User Guide: The Walkthrough of the Digital Investments Use Case

Welcome to our brand-new series describing the elements of digital financial experiences you can build using OutRank API!

Steps to heaven - How to take your customers on a journey to the land of digital trust

Fredrik Daveus, CEO at Kidbrooke®, explores how to build trust in digital wealth management for the Swiss WealthTech Landscape Report 2021 by The Wealth Mosaic.

Skandia Case Study: Pioneering Seamless Digital Wealth

The financial guidance and advice services, which constitute the life insurer’s core business, were among the first to go through the transformation. Joakim Pettersson, the digital strategy and innovation lead at Skandia, believes that digitalisation is “the only way to scale financial advisory services”.

Evida Case Study: How to build an innovative financial advisor in under seven months?

Evida began its path as a family office managing a wide range of assets for wealthy families. Initially, the Swedish financial advisor outsourced the management of equity and fixed income positions to other parties. However, the combination of their interest for factor-based investments and dissatisfaction with wealth management services provided by the largest banks in Sweden, Switzerland and Luxembourg convinced Evida to build their own digital advisory service.

Part I - Introduction to Artificial Neural Networks

In this article series, we present a machine learning-based approach to solving a common problem in financial modelling where one is faced with the task of estimating the value of a function which requires a significant amount of computation to evaluate. More specifically, a function that corresponds to a so-called nested simulation aimed at, for example, estimating a capital requirement for a financial institution or the risk associated with a structured product for a retail investor.

Part III - Portfolio Construction - The Real World Analysis

In the third and the final part of our “Portfolio Construction” article series, the findings of the previous sections are applied to a broader and more realistic set of assets to evaluate the performance of the proposed methods against more conventional techniques.

Part II - Portfolio Construction - Sampling & Optimisation

The second part of the “Portfolio Construction”-series explores whether introducing parameter uncertainty to the model would improve the out-of-sample performance of the optimal portfolio. Additionally, the article proposes and tests two adjustments to regular utility optimisation.

Part I - Portfolio Construction - Parameter & Model Uncertainty

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.

Blog Articles

The Hybrid Wealth Business: Focus on Technology

Modern technology has enabled self-service wealth management where end-customers can investigate, learn and make decisions about their financial situation. This marks the beginning of the democratization of the industry, where seamless guidance through the intricacies of personal finances is available for those who would not previously have the privilege of using the services of a financial advisor. However, combining technological advancements and the human-led service of a financial advisor in many cases leads to a better experience. This effect is achieved through empowering an expert with the tools that help them improve the quality and content of their work to levels previously unachievable. At Kidbrooke, we provide technology enabling financial advisors to build trust and truly future-proof their business models without losing the human connection. In this article, we describe two important elements of the customer experience that a hybrid model could add to any modern physical advisor’s arsenal:

Outside In: Iterate to Innovate

New technology is often implemented by large companies to solve specific problems. Once the initial purpose has been achieved, the technology becomes part of the business as usual or “BAU” infrastructure. But instead of relegating a new functionality to the “new normal” category, it is useful to consider it as a catalyst for change – both in external, customer facing projects and in internal, IT development planning. Skandia, Sweden’s largest insurance company, implemented OutRank to offer customers a superior tool to better understand their pensions and investments. Working together with the Kidbrooke team, the Skandia executives saw the positive impact that a user-friendly customer interface had on sales as well as customer retention.

Digital Assets: Should Wealth Managers Go Decentralized?

In March, Mike Winkelmann – the digital artist known as Beeple – took the art world by storm selling an NFT of his work at Christie’s for $69 million. According to the auction house, this sale positioned him among the most valuable living artists. Since this first-of-its-kind transaction, the interest in NFTs (non-fungible-tokens) specifically and digital assets in general has risen dramatically. The wealth management community has received the news with a degree of skepticism – there is a consensus that all things involving blockchain technology are too risky to consider. However, the accelerated digitalization of the economy, the continuous development of distributed ledger technology and the growing ecosystem of players in digital custody, exchange, venture capital signal that the digital assets are here to stay. In today’s blog, we discuss digital assets and their underlying value, the potential impact of the expansion of metaverse on this asset class as well as look into one of the main challenges when it comes to this type of assets – managing uncertainty.

How to Avoid Legacy Traps When Building Digital Wealth Services

Wealth managers often build customer journey islands when introducing a new service or feature. Opting instead for use case-agnostic technology that supports all components of the organization’s strategic roadmap can grant a financial institution the necessary flexibility to achieve a strategic freedom to innovate.