Deutsche Bank is getting serious about digital banking services: the German unit of Swiss insurer Baloise has agreed to use the robo adviser developed by the Deutsche Asset Management. Other partners are set to follow.
Deutsche Bank Asset Management (Deutsche AM) and Baloise have signed an agreement for the use of the new robo technology developed by the German bank. The German division of the Swiss insurer will be the first to deploy the robo adviser of Deutsche AM.
The insurer will offer the service under the brand name of Baloise Monviso. The company already has launched a website for the service, the two companies said in a statement today.
Tailor-Make Packages
Baloise will offer its clients the wealth-management services of Deutsche AM via the Internet and customers will be able to sign up for a tailor-made investment package via Monviso. The entire service will be digital, from the development of the investment strategy to the opening of a deposit.
The minimum sum necessary to become eligible for the service is 400 euros. The sum shows that the service is aimed at a clientele with a smaller purse. These customers increasingly will become the focus of the finance industry as digital banking enables cheaper services.
UBS for instance in the autumn of last year launched its own robo service in Germany and the U.K. for the same type of customer.
Other Clients Will Follow
With the service sold to Baloise Germany, Deutsche Bank is taking a great stride in the rush to make digital products available. The strategy of the bank relies on making technology available to third party providers as white-label solutions. And with Baloise as a customer, Deutsche AM has managed to get a big client on board.
Deutsche AM expects to sign up three to five further firms for its service, «Frankfurter Allgemeine Zeitung» reported.
More Tech Solutions in the Pipeline
The bank also intends to develop its investment and distribution strategy with the help of new technology, using big data, artificial intelligence, chatbots, virtual reality and natural language processing as tools, it said in the statement.
The deal with the Swiss company’s German unit shows just how important the developments at Deutsche might become for the Swiss financial market. Deutsche AM also has an agreement with Descartes Finance in Zurich as a client for its ETF portfolio.
