The inextricable path to human obsolescence continues as Deutsche Bank adds a robo-advisor to its maxblue online investment platform, enabling clients to ditch people for algorithms.
The free AnlageFinder robo-advisor tool, developed with fintech firm fincite, asks clients a series of questions on their investment objectives, terms and risk appetite to create an opportunity/risk profile.
The algorithms then put together customised asset allocations which the clients are free to use or tweak as they see fit. The service offers a selection of securities in the respective asset class based on criteria selected by the client, such as rating, product costs and performance.
AnlageFinder will initially only be available online but an app version is scheduled for release in early 2016, while new features, such as peer-to-peer comparisons and risk management, are also slated to appear next year.
Markus Pertlwieser, COO, private and business clients, Deutsche Bank, says: "With our AnlageFinder robo-advisor, clients can professionally put together their portfolios and optimise their investment outcomes with just a few clicks.
"AnlageFinder provides clients with extensive support in making investment decisions with the help of tutorials and comprehensive financial market information. This investment tool helps Deutsche Bank position itself for the digital natives among its clients who are keen on seizing the opportunities offered by capital markets."
Deutsche is only the latest bank to pile into the market, sensing an opportunity to cut costs and take on a new generation of wealth management firms such as Wealthfront, Betterment, Personal Capital, and FutureAdvisor who are already luring away clients with the promise of no-frills, low cost, advisory services.
The industry has also attracted the attention of regulators - earlier this month the Joint Committee of the three European Supervisory Authorities - EBA, EIOPA and Esma - opened up a debate about the risks and benefits of robo-advisors, inviting comment on its discussion paper.