As the world is slowly being captured by digitalization, from physically buying stuff to now just buying everything online, opting for financial services online, is not far behind. Introducing Comarch, a provider of IT and software systems, that is based in Poland, has launched a wealth management app prototype. They have decided to take advantage of something that has never been tried before, in the private banking sector.
The duo of financial planning and investment advisory are combined as a single tool, in the mobile app prototype. ‘It lets well-off bank clients control and multiply their assets, often scattered throughout the world, with no more than a few taps – and a little help from a personal advisor’, says Grzegorz Prosowicz, Head of Product Management for Capital Markets at Comarch. He also mentions that, the app is designed in such a way that, the investment strategies are made in such a way, that it moves alongside with the client’s needs and goals.
This app doesn’t limit itself to only that, Comarch also proposes to form and manage financial portfolios with a 3D environment effect. ‘It is not just very relevant to video games, but also e.g. to determining the investment risk appetite’, underlines François-Xavier Hen, Comarch’s Business Solutions Consultant. ‘The 3D world lets you interact with your advisor in a whole new way – and actually brings “private” back to “private banking”’.
So how did Comarch think of such an “Out of the box” idea’? Well, according to Mr. Hen ‘Combing through all your financial data can give you a major headache’. So they asked themselves: ‘how do we go from “boring” to “enjoyable”?’ And that’s how the idea turned into a virtual reality. He argues, that it’s all about forecasting the said data, which is usually dry and not appealing, Therefore, making it way easier to grab. ‘We can actually visualize the potential outcomes from a range of investment decisions as well, which ultimately lets you make better ones’, says Hen.
Maciej Wolański, who is the head of R&D at Comarch’s Financial Services sector feels that, it’s the entertainment industry that mostly gets credited for standing in front of disruptive innovation – whereas the banking and finance sectors are very far behind. ‘This time we wanted to enable the “laggard” to move closer to the leading pack’, explains Mr. Wolański.
The whole customer journey starts with a smart watch, he describes. ‘Say it notifies you about oil prices dropping fast. You grab your phone, put it into a VR headset, connect your advisor and tell them to show you how the drop affects your portfolio and what decisions you can make now’, exemplifies Mr. Wolański. ‘It goes from a tiny screen on your wrist to a huge one in your goggles – what you then see in 3D is kind of a command center where you have the full overview of the situation’. Each of these channels, Wolański says, has its own purpose and use case.
From last year’s BI Intelligence report, VR headset shipments are going to increase at 99 percent compound annual growth rate between 2015 and 2020, therefore, making it worth a $2.8 billion hardware market. Financial institutions, that includes Wells Fargo or Silicon Valley Bank have already began to experiment with the VR. Others, like Goldman Sachs or Santander are not far behind.
The representatives of Comarch, say that, they aim to change the traditional approach of client and service provider in private banking by joining algorithms, human relations, wearables – and some entertainment. ‘Apart from us, nobody else in the world proposes wealth management with the use of 3D goggles. Or if they do, they really do cover their tracks’, smiles François-Xavier Hen.
There was some buzz on the Comarch’s prototype, at the previous Finovate, which is a conference, that focuses solely on some of the most innovative and remarkably best financial and banking technologies. ‘This definitely, is something outside of the box’, says Greg Palmer, Sr. Event Director of The Finovate Group. ‘It might take a few years before it makes an appearance in the finance world, but data visualization has substantial potential when it comes to investment advice’.