Project: Tailored Adaptive Personal Planning and Asset Liability Management
Expersoft Systems is a vendor of Portfolio Management software for wealth and asset management which targets multiple market segments, being adopted by retail banks, private banks and asset management companies, as well as family offices. With a consortium including Infina Yazilim, vendors of Fund Management software, and Whitestein Technologies, vendors of Process Management software, this proposal aims at realizing an innovative Process Driven Financial Planning software system._x000D__x000D_The resulting software will combine the latest financial modeling approaches with an unparalleled flexibility in tailoring the planning process and the financial plan itself to the needs and goals of clients. A rich, dynamic Web-based user interface will deliver this power to wealth managers and advisors in a comfortable and easy to use way, thereby enabling design, simulation, and management of portfolios and investment strategies better suited to the specific client needs and goals, for increased and more durable customer satisfaction._x000D__x000D_The onset and development of the global financial crisis started in 2008 left permanent marks on the world's economy and on the financial industry in particular. From a risk management perspective, it is now becoming increasingly clearer that a sound risk assessment has to include the case of predictive model failure, and not just model inaccuracy. A series of consequences originates from this:_x000D_ 1. There is an irreducible, qualitative difference between a guaranteed outcome and one with a very low (estimated) risk, in that the first is immune from model failure whereas the second is fragile to it._x000D_ 2. Model failure is usually the result of incorrect assumptions or of neglecting factors that have been "simplified away". Both these issues become more troublesome the more abstract and general-purpose a model is: in particular, purposefully ignoring relevant information available in a concrete case in order to apply an abstract model to it is not acceptable and should never occur._x000D_ 3. Strong mathematical hypotheses introduced COly (if not exclusively) to enable analytical treatment of a financial planning problem (e.g., Gaussian or exponential thin-tailed distributions, statistical independence among relevant variables, Markovian stochastic processes) carry a heavy burden in terms of their underlying assumptions, increase the likelihood of model failure, and should therefore be regarded with suspicion._x000D__x000D_Another aspect of the current mistrust in general-purpose predictive models and financial forecast at large is that savers and investors are expanding the range of their target asset types: not just financial instruments of various forms but also real estate, expensive vehicles, precious artifacts and works of art, or horse stables. Managing a portfolio that includes these special, illiquid and non-commoditized, asset classes poses additional challenges with respect to classic wealth management practices:_x000D_ 1. Asset valuation does not happen regularly and automatically, but must be triggered and organized explicitly, often requiring sophisticated expertise (e.g., auction price estimation for a work of art)._x000D_ 2. Asset trading is not managed by a common market or clearing house, but must use ad hoc intermediaries and channels._x000D_ 3. Each asset class (or even asset instance) has specific, non-financial management processes, that can however generate cash flows to be taken into account in financial planning (e.g., periodic COtenance of a personal aircraft, or stud fees from a racing horse stable)._x000D__x000D_Three points have been made above (improving customer satisfaction, avoiding simplistic cookie-cutter financial models, blurring between financial and operational asset management). They jointly contribute to the rationale for the overall project objective, which revolves around personalization in different dimensions:_x000D_ * Personalization of customer relationship and planning process._x000D_ * Personalization of financial modeling and planning._x000D_ * Personalization of asset management including operational tasks for special asset classes.
|
Acronym
|
TAP-PALM
(Reference Number: 8179)
|
|
Duration
|
01/09/2013 - 31/08/2015
|
|
Project Topic
|
The TAP-PALM project aims to deliver support software to customer financial planners granting unprecedented fitness to clients' needs and goals in the financial plan lifetime. A novel approach leverages hybrid mathematical models (analytical and agent-based simulation) and goal-oriented BPM.
|
|
Network
|
Eurostars
|
|
Call
|
Eurostars Cut-Off 10
|
Project partner
