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Appointment of SAGE Group SA’s Head of Sales for Middle East

Finovate Europe: Inventing the Bank of the Future

About 60 ground-breaking businesses in the Banking and Finance industry showcased their latest developments during the Finovate conference held in London over a period of two days.

Our editing team was able to gain some insight on the banks and the Swiss developers present at the conference and reviewed a number of new ideas during the conference, ranging from mobile services to Foreign Exchange.

It was a heterogeneous group of individuals that gathered on a cold morning in a Victorian building situated in Old Billingsgate, at the heart of the City district.

Bankers, investors, entrepreneurs and other consultants had come to attend the Finovate European Conference featuring the latest and most effective technological innovations in the Banking and Finance sector.

The organizers had prepared an intensive programme with approximately 60 presentations in two days, a sure sign of a field enjoying rapid growth.

Established organizations and start-up businesses that had been selected were allocated a time limit of seven minutes each to present their products and win over their audience, with the presentations being halted once their time limit has been exceeded.

The enthusiasm of innovative entrepreneurs in participating and thus obtaining opportunities for establishing essential contacts with potential clients, investors and partners, while enjoying a high level of visibility, was not dampened by the tight schedule imposed.

Four Swiss IT organizations present at Finovate were all established vendors who had come to unveil their latest technologies.

SAGE Group SA, a company based in Lausanne (not to be confused with the developer of ERP) had also made the journey to London in order to unveil its new portfolio management tool, BlackSwan Financial Platform, whose outstanding feature is its ability to incorporate indicators capable of providing clients with more information compared to means generally employed by professionals.

“With an advisor, a banking client could, for example, simulate and visualise  risks and performance forecasts of their portfolio in relation to the change in economic growth in a particular region”, Jean-Luc Freymond, the CEO of SAGE Group SA, explained during his presentation.

 
Observer Banks

Few Swiss bankers took centre stage during the conference, with the majority forming a part of the audience.Among them were certain representatives of Swiss organizations. Bogdan Iancu, a representative of web based operations at the Banque Cantonale Vaudoise explained that he was there to observe and update his superiors on the technological innovations presented, stating: “We are interested in PFM, although it is not our aim to pioneer new technologies”?

Representing UBS were Urs Wagner and Andreas von Criegern, respectively involved in e-banking and web strategy at the bank. They too had no interest in pioneering new technologies but were interested in new developments. “We are investing in e-banking and mobile services, however the attachment of clients to advice and more traditional channels of communication cannot be forgotten,” they explained.

When asked which was more difficult between being convinced by start-up enterprises and convincing their superiors, the two representatives merely smiled in response.

It is worth noting that technological innovations are not a priority for Swiss banks.

A study carried out by Ernst and Young in December 2012 involving 120 Swiss banks revealed that their priority themes for 2013 included conformity, equity planning (Basel III) and fiscal transparency. Investment in new technologies was relegated to the background.Furthermore, although the Swiss banks foresaw a sharp fall in customer loyalty, 70% of them   held the view that external competitors within the sector would not pose any threat to their market position by 2020.Tariffs for banking services were expected to become more transparent but not more profitable.Which is worth reflecting on.

*This news was written by Rodolphe Koller and published in French by ICT Journal. Published text translated in English has been shortened for its significance to SAGE Group SA.

The new generation of Private Banking

Together with the erosion of banking secrecy, regulatory changes have increased the pressure on asset managers’ profit margins.  As a consequence, these institutions have been forced to look for ways to improve their value proposition.In this context, various technological advances directly designed for private wealth management have emerged. These new tools suggest scenarios in which financial institutions can distinguish themselves using technology.  While one cannot underestimate the importance a relationship manager plays in creating customer satisfaction, their performance is only as good as the tools available to them.

Customers have become accustomed to having a multitude of online services available in their everyday lives; they expect to see the status of their investments in real time, preferably on their mobile tablet.  This trend is creating the conditions to rethink the interaction between relationship manager and investors.  For example, by allowing the customer to examine the important events related to their account (such as the performance of their portfolio) before each appointment, the manager significantly reduces the need to explain past information to the customer and can dedicate more time to the real issues that the customer has.  This creates a more useful report for the customer because it enables him to clearly visualize the opportunities and risks associated with his investments.  As a result, the customer has a better understanding of the ins and outs of his decisions, and he accepts the consequences of those decisions more readily. This transparent approach to account management can strengthen the trust in the manager-customer relationship.

When the Risk becomes tangible
With the increase in market volatility, and the need to generate absolute returns after taxes, customers expect to get evidence of a systematic process aimed at reducing their risk.  Given the abstract nature of the notion of risk and the complexity of the quantitative models that they involve, it is essential to use intuitive settings and scenarios to get investor’s buy-in on the investment decisions.

One method is to establish a set of factors that are meaningful to the investor, such as GDP growth, inflation or the price of oil.  These factors should include all the variables that the investor wishes to be exposed to and those against which he wishes to hedge himself.  Based on these elements, the portfolio optimization tool BlackSwan Financial Platform creates the conditions for an interactive discussion of the options available to the customer using a set of intuitive indicators which one can use to observe the impact on the portfolio in real time.  The main advantage of this type of analysis is that it enables the construction of a portfolio that matches the client’s strategic concerns and particular hedging requirements.  In addition, it provides a better understanding of how a portfolio is composed.  Thus, the act of investing is no longer to buy products or to comply with a predetermined asset allocation, but rather to have exposure to risks for which the investor wishes to be rewarded.

It is obvious that in order for the Swiss financial industry to maintain its global standing, it must compensate one way or another for the loss of the competitive advantage that it formerly enjoyed from its banking secrecy.  As we have shown, opportunities exist: by arming themselves with effective tools, Swiss asset managers can build a solid reputation through their superior management of risk.

SAGE Group SA launched BlackSwan Financial Platform at FinovateEurope 2013

SAGE Group SA at FinovateEurope 2013

SAGE Group SA, a privately owned Swiss financial technology company providing wealth management and risk management solutions, has been selected to present at FinovateEurope 2013 to be held in London from February 12-13. FinovateEurope is a demo-based conference for innovative startups and established companies in the fields of banking and financial technology. Held annually in London, the event offers an insight-packed glimpse of the future of money via a fast-paced, intimate and unique format.

“Finovate is excited to see SAGE Group SA present for the very first time at FinovateEurope and demonstrate interactively their intuitive investment management tool,” said Eric Mattson, The Finovate Group CEO. “Portfolio management is a highly risk-sensitive process and any tool that helps advisors and investors is a welcome innovation.”

“We are very pleased to have been selected to present at FinovateEurope,” says Jean-Luc Freymond, CEO of SAGE Group SA.“Relationships between investors and their advisors are changing and that is about to change further. This tool provides a unique opportunity to involve the client in the decision-making process, letting the client visualize and understand the risk that certain portfolio allocations are holding.”

More about SAGE’ BlackSwan presentation at Finovate on the event’s blog.

ABOUT SAGE
SAGE Group SA, founded in 1986, is headquartered in Switzerland with branches in Dubai and Singapore. It is a privately held software company that develops financial applications called Prospero and BlackSwan.

Prospero is a suite of solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, and Independent Asset Management/Family Office. BlackSwan Financial Platform uses a unique algorithm to help firms optimize their asset mix during uncertain investment environments.

These applications help global financial organizations focus on their core competencies–and thereby improve their productivity. For more information, please contact SAGE at +41 21 653 64 01 (Switzerland).

ABOUT FINOVATE EUROPE
FinovateEurope is a demo-based conference for innovative startups and established companies in the fields of banking and financial technology. Held annually in London, the event offers an insight-packed glimpse of the future of money via a fast-paced, intimate and unique format.

FinovateEurope is organized by The Finovate Group. For more information on the event or to view videos of previous demos, please visit their website.

SAGE Group SA’s Prospero Recognized in Aite Group Study

Lausanne, 20/11/12 – SAGE Group SA’s financial software, Prospero, has been recognized in an industry study of vendors that are successfully competing in the rapidly changing global private banking sector.

“SAGE Group SA’s Prospero differentiates itself on its ability to provide one solution with front-to-back straight-through processing that is agile, modular, simply deployed, and results in a quick return on investment,” says the report.

The September 2012 study – “Evaluating Global Private Banking Platforms: Change May Create Opportunity” – compares vendors based on self-reported vendor information and independent analysis by the Aite Group.

Driving the study was the Aite Group’s recognition that significant changes are underway in the wealth-management industry. Specifically, the regulatory environment is more aggressive, wealth is shifting, and wealth-management firms are becoming more competitive.

To manage these changes, wealth-management firms have two choices, says the Aite Group: Implement broad platforms that provide functionality across banking and investments, or implement investment-focused platforms.

One firm helping wealth-management firms do just that is SAGE Group SA, whose flagship financial software, Prospero, integrates front-, middle- and back-office systems via many different modules.According to the Aite Group report, Prospero is notable for its architecture, capabilities, and deployment.

 
For example, Prospero utilizes application programming interfaces APIs to integrate with legacy, third-party vendor, and external clearing and custodial systems. A user-defined report generator allows customization, and most modifications can be handled directly by users without further development. Prospero’s front end is also fully Web-enabled. “The system is completely flexible,” says SAGE Group SA CEO Jean-Luc Freymond.

SAGE Group SA has also taken a blended front-to-back approach over time. Middle-to-back office capabilities are all live, including portfolio construction, order management, portfolio management and reporting, risk management, portfolio accounting, and core banking. According to the report, “SAGE Group SA has released a completely new risk management module based on risk optimization” and “SAGE Group SA is notable for the integration of its core banking system with its front- and middle-office software.

“In regard to deployment, SAGE Group SA offers Prospero on a hosted (SaaS) basis – cutting-edge technology that Freymond says makes deployment easier. Approximately 30 percent of its clients utilize this option. SAGE Group SA is also placing considerable efforts in this increasing important area of mobile access, as no financial platform can compete today without providing it, says Freymond.

These features clearly appeal to a variety of clients. SAGE Group SA’s ever-increasing client base includes the international hubs of large, global private banks, particularly in the mass-affluent and high-net-worth segments. Clients of all sizes, can benefit from SAGE Group SA’s experience with international hubs.

In sum, the report concludes that “SAGE Group SA is able to provide a full platform…with simple deployment at low cost.”

“I am very happy to be called out in the Aite Group report, and am confident that we will see more such recognition as our client base continues to grow,” says Freymond. “Competition is fierce, but we have clearly differentiating factors that make us leaders. Our market success has proven this, and explained both our differentiating factors and agility to deploy: We have doubled our client base during the most severe financial crisis.”

To receive a complimentary copy of this report or for additional information, please contact: SAGE at www.finartis.com or info@finartis.com

Presentation: Winning clients’ trust by a systematic risk management process

Jean-Luc Freymond, Chief Executive Officer, presented at Hubbis’ Technology & Systems Solutions in Asian Wealth Management Forum on 13^th November 2012 on how wealth management firms can win their clients’ trust with a systematic risk management process.

View video

SAGE launches BlackSwan Financial Platform

Lausanne, Switzerland – SAGE Group SA, a financial software solutions company specialising in Wealth Management, has just launched BlackSwan Financial Platform, a revolutionary new addition to its suite of Wealth Management solutions. In today’s uncertain investment environment, companies are pressed to maximize expected return while minimizing expected losses, yet no software takes into account extreme market conditions. By taking possible extreme market events into consideration, BlackSwan does exactly that, helping asset managers and family offices make sophisticated investment decisions that maximize return while minimizing risk.

BlackSwan improves on the classical mean-variance solution that many asset managers find limiting in light of the instability of the European economic and market environment. The mathematical financial algorithm that was developed specifically for BlackSwan is revolutionary because it takes into account extreme realizations, painting a more accurate picture of the market. In doing so, it allows managers to accurately measure risk in volatile markets and hence improve investment performance by actively managing shortfall and windfall allowing for better informed decisions.BlackSwan also assists asset managers in demonstrating knowledge to clients by explaining investment choices using measurable criteria and demonstrating systematized risk-management plans. This function is available through a user-friendly, web-enabled dashboard ideal for client-facing finance professionals and family offices.

Main Benefits:

• Improves on the classical Mean-Variance solution by taking into consideration possible extreme market events
• Provides greater diversification capabilities
• Performs an optimization allowing multiple types of constraints
• Is a new and efficient risk and marketing management tool
• Improves the level of customer’s confidence in their financial institutions through an extended risk analysis

About SAGE
SAGE Group SA, founded in 1986, is headquartered in Switzerland with branches in Dubai and Singapore. It is a privately held software company that develops Prospero, a suite of wealth management solutions that is user-friendly, robust and cost-effective; and BlackSwan Financial Platform, a Portfolio Optimization solution.

Prospero is a suite of solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, and Independent Asset Management/Family Office.

BlackSwan Financial Platform accurately models financial instruments by taking into consideration extreme behaviors to recommend the best trade-off between risk and return. These applications help global financial organizations focus on their core competencies–and thereby improve their productivity.

 
For more information, please contact SAGE at +41 21 653 64 01 (Switzerland).

SAGE Group SA signs Emirates Investment Bank for Prospero Wealth Management

SAGE Group SA, a financial software solutions company specialising in Wealth Management, has just signed with Emirates Investment Bank in Dubai to provide the investment bank with its full Prospero Wealth Management solution to cover their front-to-back office requirements as well as General Ledger.

Prospero is a highly flexible suite of financial solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, and Independent Asset Management/Family Office. It caters to each bank and financial institution’s unique needs allowing for its components to be implemented separately or as an integrated whole; it can also interface with existing legacy systems as part of a best-of-breed approach.

Mr. Samer Ghosheh, IT director of Emirates Investment Bank said; “We found that Prospero Wealth Management was one of the few software in the market that provided all of the functionality necessary to run our wealth management business across all asset classes, from front office to back office, including General Ledger;. Most systems we shortlisted demonstrated strength in certain areas only whereas Prospero allowed for the streamlining of our processes, which will translate into cost reduction and minimization of our operational risk.”

“We at SAGE Group SA understand that the name of the game after the financial crisis in the GCC has changed. Competition won’t wait for us. You have to think out of the box every day and step out to offer banks in the GCC a full-fledged wealth management software packed with the latest features, at record implementation times, and with extremely competitive conditions. We are delighted to have been chosen by Emirates Investment Bank and look forward to assist them in growing their activity while solidify both ours and Emirates Investment Bank’s presence in the GCC,” says Fernand Rasetti, Chief Operating Officer at SAGE Group SA.

About Emirates Investment Bank
Emirates Investment Bank PJSC is a UAE-based banking boutique. Emirates Investment Bank is organized along two primary business lines: Private Banking and Investment Banking. Emirates Investment Bank maintains an uncomplicated and highly liquid balance sheet providing them with the flexibility to respond favourably to the varied requirements of its clients with total confidence in the soundness of its position. Emirates Investment Bank is committed to building strong and lasting relationships by serving the needs of its clients with great care, professionalism and integrity. For more information, visit www.eibank.com.

About SAGE
SAGE Group SA, founded in 1986, is headquartered in Switzerland with branches in Dubai and Singapore. It is a privately held software company that develops financial applications called Prospero and BlackSwan. Prospero is a suite of solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, and Independent Asset Management/Family Office. BlackSwan is a financial platform that uses a unique algorithm to help firms optimize their asset mix during uncertain investment environments. These applications help global financial organizations focus on their core competencies–and thereby improve their productivity.

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