Hypothekarbank Lenzburg has agreed to a cooperation with a Swiss fintech, specialized on risk analysis. The new technology will improve the evaluation of the risk level of customer portfolios.
Hypothekarbank Lenzburg and Edge Laboratories (EdgeLab) agreed to a cooperation with a view to renew the risk management of the bank for its asset management clients.
EdgeLab, based in Pfaeffikon, is specialized in the calculation of investment risks. «The EdgeLab technology will help us fulfill the requirements by the financial services law,» said Marianne Wildi, CEO of the bank, in a statement.
Enhanced Categorization
Banks can use the EdgeLab technology to assign more than 1.5 million investment instruments into five separate risk categories.
Hypothekarbank will also be able to evaluate the risk of investment portfolios as a whole and not just for individual securities. An option for instance has a different risk level if it is being used to hedge for an existing position than if it is used for speculative reasons, according to Wildi.
Digitization at Full Speed
The bank thus is boosting the digitization of its procedures with the help of fintech. The company in January launched «HypiPay», a tool for digital payments, social media marketing, search engine optimization and customer administration. «HypiPay» was built with the help of Payrexx, a Swiss fintech based in Thun.
Hypothekarbank Lenzburg in December was named the most digital among Swiss banks.
