Paolo Sironi is recognised author of books about portfolio management and FinTech innovation. In his current role as IBM thought leader for Wealth Management and FinTech Analytics, Paolo links FINance and TECHnology globally, demonstrating sound expertise over a number of areas including Wealth Management, Asset Management, Risk Management and Financial Technology. Prior to IBM, he founded a FinTech (2008) to provide Goal Based Investing solutions to wealth managers. The FinTech became a part of IBM (2012) following the acquisition of funding partner Algorithmics, world leader of risk management solutions. Paolo has a decade-long risk management expertise; he was previously head of market and counterparty risk modeling at Banca Intesa Sanpaolo.
He is the author of “FinTech Innovation: from Robo-Advisors to Goal Based Investing and Gamification” (Wiley 2016), “Modern Portfolio Management: From Markowitz to Probabilistic Scenario Optimisation” (RiskBooks, 2015), and co-author of “The FinTech Book” (Wiley, 2016).
Paolo’s posts can be read on LinkedIn, Twitter @thepsironi or his personal website thepsironi.com
- 22 Wednesday 15:15 – 15:35 Session III Investment & Wealth Management –
FinTech Innovation: from Robo-Advisors to Goal Based Investing and Gamification.
The Wealth Management industry is facing a period of profound transformation due to technology, investors’ behaviours and regulation. Wealth Management institutions can build a successful agenda for digital innovation only if they understand the shift from a distribution channel of financial products into a distribution channel of financial advice. This is not easy, and Robo-Advisors are the best representation of this change of approach. Yet, Robo-Advisors themselves cannot move out of the disruption they created if they do not embrace more aggressively the principles and methods of Goal Based Investing. The industry must innovate in FINance and not only in TECHnology, which means to transform the quantitative methods beyond Modern Portfolio Theory to craft a better inter-temporal understanding of the potential future performance of actual products, actual liabilities hence actual portfolios against financial targets (asset values or post-retirement income streams). The professional shift from a market oriented perspective towards a client/portfolio centric definition of the asset allocation can be facilitated by Probabilistic Scenario Optimisation. But risk and return, alias fears and ambitions, cannot enter the new equation if investors and their advisors do not change at the same time their behavioural approach to investing. Therefore, educational Gamification has the potential to become a growing field of innovation, to help educate digital financial advisors and their digital clients, to change their investment behaviour by learning what money is for, how to invest and what to believe in when setting financial goals.
IBM Risk Analytics enable the world’s most successful companies to make risk-aware decisions through smarter enterprise risk management programs and methodologies – driving business performance and better outcomes. The combined risk management capabilities of Algorithmics and OpenPages can help your company achieve profitable growth and address increasing demands for regulatory compliance in today’s volatile and complex market conditionsconditions.