FinovateFall 2016, NYC: Day 2

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8 September 2016
Kelley Byrnes

Below is a selection of companies, which demonstrated solutions that can be used in the wealth management space. The Best in Show awards went to: 1) AutoGravity, 2) Backbase (mentioned in my blog post yesterday, FinovateFall 2016, NYC: Day 1), 3) Clinc (profiled below), 4) MX, 5) Swych and 6) Trusona

Envestnet│Yodlee:

Envestnet│Yodlee presented their dynamic intelligence solution. Envestnet│Yodlee walked through an example with a fictional user, Amanda, a 29 year old with $85,000 in student debt. Amanda just received a $15,000 signing bonus. A chatbot alerts Amanda of the new deposit and provides Amanda with three ways to use the cash: 1) pay down her credit card debt, 2) use the money for emergency savings, or 3) pay down her student loans.

Envestnet│Yodlee has data on 22 million customers in 15 countries. As such, Envestnet│Yodlee has looked at data across all of Amanda’s financial institutions and has data that shows Amanda has stopped contributing to her prior’s employer’s 401(k). Therefore, Envestnet│Yodlee infers that the $15,000 is not a recurring deposit.

The chatbot offers Amanda detailed information on each of the three suggestions listed above. The chatbot uses Amanda’s financial information and best financial practices to offer additional information on each of the three recommendations. For example, when Amanda asks for additional insight on putting the money away in an emergency account, the chatbot provides information on how much money Amanda needs to cover one, three, or six months of spending based on her habits.

IBM Customer Insight:

IBM Customer Insight, the second IBM product to be demonstrated at FInovate, is a dedicated cloud system. It provides cognitive insights derived from third-party sources, customer transactional and behavioral data.

The Finovate demonstration showed what a regional manager at a bank would see when using IBM Customer Insight. The fictional regional manager, Harry can use IBM Customer Insight to predict customer attrition, mortgage churn, overdraft, and large deposits. Also, Harry can use IBM’s system to study the sum of a customer’s life events. Harry can look at one life event, such as a relocation to get information on other possible life events, like purchasing a home or retirement.

M1 Finance:

M1 Finance, a portfolio management tool, announced their public launch at FinovateFall 2016. Their product allows users to create, organize and automate their investment portfolios. An individual can choose to create a default M1 portfolio or create their own portfolio. M1Finance has three default portfolios: 1) Savings, 2) General, and 3) Retirement. The portfolios are all displayed graphically as a pie chart.

In the presentation, the M1 Finance Savings portfolio was selected. A user can then choose to edit the savings portfolio investments. For example, a user can search the investments in the savings portfolio for FANG stocks (Facebook, Amazon, Netflix, and Google) and opt to group those stocks together. The user can track this FANG group separately and even choose to increase the weighting of the FANG stocks. Every slice of the pie is a visual representation. For example, if the perimeter of the FANG stocks are not be in line with the rest of the pie’s perimeter it indicates the FANG weighting is over/under target allocation.

M1 Finance is available on the web, android and iOS. In the presentation, M1 Finance said they do not charge rebalancing commissions.

Qumram:

Qumram demonstrated how “digital business and compliance can co-exist.” Qumram records every digital interaction, plays them in movie form, and stores the videos for as long as is required by regulation. Currently the product is used by UBS globally.

In today’s demonstration, the Finovate audience witnessed an interaction between an advisor and a client on WhatsApp. The fictional client was Patrick, who wants to invest $30,000. After the advisor’s conversation with Patrick concludes, the conversation is recorded and automatically categorized with the client’s name, advisor’s name and products mentioned, e.g., LinkedIn (LNKD).

Clinc:

Clinc is another dynamic intelligence solution. The application responds to conversational language. For example, in today’s demonstration, the demonstrator said, “I am thinking of getting something to eat after Finovate in NYC. Can I afford $150 on dinner?” The application responded with the user’s monthly average spending on eating out. The application also added that if the user were to spend $150 on dinner tonight that the user would still be 10% below their average monthly spend. Additionally, with the use of the Clinc app the user can move some money between accounts.

FIS:

FIS discussed their new card-less cash technology. The FIS presenter showed that an individual can retrieve cash from an ATM without inserting a card. A user can save their preferences on their mobile device. For example, if a user usually takes out $40 at a time, then that preference can be saved. When at an ATM, the user can select card-less cash as an option. The user then scans the QR code on their mobile device.

FIS also showed that when a user approaches an ATM that is behind a locked door, the user can open the door with their mobile device. Lastly, FIS demonstrated that with their technology allows a user to send money via Amazon’s Alexa. The demonstration closed with a video of the individual in India collecting the money from an ATM located in India.

With the addition of FIS’ latest partnership there will be 100,000 ATMs with card-less cash optionality. Additionally, card-less cash works at participating grocery stores, convenience stores and pharmacies.

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Content Type
Blogs
Location
Asia-Pacific, EMEA, LATAM, North America