Any good Robo starts consist of these 7 steps but feel free to get creative. At Bambu we believe there is more than one way to do wealth management but here are just some simple guidelines.
This is where you collect information from your users. It could be as simple as providing them a form to fill or connecting to a current database consisting of the relevant information. Just make sure it is simple, fuss free and it should be the shortest aspect of your client's journey.
Before we can provide users with Goal-based Financial Advise, we would need to ensure that they financially stable to begin an Investment Journey. Here are some of our calculators to help users.
This API understand the kinds of loan obligation the user is having and gives recommendation on whether he would be able to afford to start and investment journey
Check it out here
Risk profiling should be fast and simple but accurate. Your users should not feel like they are taking an exam but still get the proper recommendation that they require. Our API allows you to select from a variety of questions to help you determine various scores, from risk comfort to volatility tolerance.
Risk Profile Calculator
Our Risk Profile Calculator recommends a risk profile score based on the user's Risk Capacity and Risk Tolerance. Check it out here
Here users can select their goals from a variety of Goal types, Amount for each goal and Year of achieving the goal.
Of course it will a challenge for users to fill in all these details from scratch, thus we have 2 features that will help users understand their financial situation better.
Goal Builders are calculators to help users figure out how much they should budget for some of the more popular goals.
- Kid's University Calculator - This API helps users figure out the cost of sending their kids to university in different parts of the world. Check it out here
- House Location Calculator - This API helps users figure out the cost of a house by location and house type. Check it out here
- Retirement Lifestyle Calculator - This API helps users figure out how much they would need to maintain their current lifestyle when the retire. Check it out here
People Like Me
Clients can opt to allow users to prepopulate these fields using our proprietary People Like Me Engine, which help selects the goals and amounts most appropriate for your users base on their profile. To learn more about how People like me works click here
Selection of portfolios will be based on a combination of their goal and their risk profile. You will be able to connect to the funds of your choice as well as have the flexibility to choose between having individual portfolios per goal or a single portfolio for all goals.
Our basic health check determines the minimum sum required by the user to fulfil his goals. If the user is unsatisfied with the amount required, we provide you various optimisers that you can provide to your users to help them select the best course of action to take.
Check out the Health Check API here
After reccomeding a Portfolio per goal, user's should be able to view their portfolio. 3 Keys items to show users would be, 1) Asset and Geographical Allocation, 2) Projections, 3) Historical Performance
On the topic of Projections, many Financial Planners out here would show 3 Projection Scenerios; Optimistic, Normal, Conservative.
To Plot this 3 projections, We assume that expected returns are normally distributed and that future prices are lognormally distributed, which is closer to reality. The first step is to transform the discrete returns and volatility into continuous form. Then, we can derive the annualized return and its interval of confidence. Finally, we convert back into discrete values.
Try this API here.
It is the Robo Advisory Platform's duty to conduct portfolio reviews with their users at least yearly. User’s financial needs are reassessed and current portfolio is compared with model allocation. If there is a mismatch corrective actions has to be proposed.
Bambu’s platform covers this requirement by:
Proposing the client to reassess his/her risk appetite and financial plan yearly by
calculating the probability of achieving the goal on a daily basis. If there is a signal to rebalance a portfolio, the User will be alerted and the recommended top ups or change in funds will be shown
Check it out here.
It's Crazy Easy!
So it really is that easy. What are you still waiting for! Why not try out some of our APIs in the next section and get started.