FAQ for financial service providers

Find answers to the most frequently asked questions about True Wealth's B2B offering.

Offering

  • What does True Wealth offer to banks and other financial service providers?

    True Wealth's online wealth management solution offers your clients a modern investment service that is easy to use, provides full transparency and is uncompromisingly cost-efficient. In doing so, we combine the two major trends of digitalization and passive investing.

    Our technology (also known as a Robo-Advisor) optimizes all asset management business processes, thereby revolutionizing clients' investing experience.

    The automated investment service is integrated into any online portal or e-banking platform as a Software-as-a-Service solution and is provided to your customers primarily as a self-service investment product. You benefit from continuous updates of our software to new customer expectations, technical possibilities and regulatory requirements.

    By cooperating with True Wealth, partners streamline their business while providing a solution that a fast-growing customer segment of affluent and digital-savvy clients is demanding.

Cooperation model

  • What does the cooperation model between a financial service provider and True Wealth look like?

    In a cooperation, the bank or financial institution normally takes on the role of wealth manager and custodian while True Wealth acts as software and service provider of the True Wealth online wealth management solution.

    True Wealth's automated investment platform implements the investment policies as specified by the cooperation partner.

    The financial institution acts as single contracting party and single point of contact to the customer. There is a cooperation and outsourcing agreement between the financial service provider and True Wealth.

Functionalities

  • What are the functionalities offered by the online wealth management solution?

    True Wealth provides all the necessary functionalities for an automated investing service, including some unique product features:

    • Presentation of the investment strategy using an interactive drill-down functionality
    • Portfolio customization using an intuitive slider to adjust the target asset allocation to customer preferences (no fractional shares required)
    • Ongoing portfolio monitoring for optimal portfolio risk and level of diversification, ensuring control over how far customized portfolios may deviate from the efficient frontier
    • Detailed and interactive daily reporting including performance contribution analysis by asset class

    In addition to this selection of customer-specific functionalities, True Wealth's online wealth management service optimizes and automates all business processes along the value chain, from account opening and order processing to reporting.

  • Can True Wealth's solution be tailored to the needs of individual financial service providers?

    Our solution can be adapted to your needs in the following core areas:

    • User interface styling: Application of the financial institution's corporate identity and design
    • Portfolio construction: Integration of your firm's strategic asset allocation (SAA), investment universe and optionally tactical asset allocation (TAA)
    • Investment instruments: ETF, index funds or other investment instruments that represent individual asset classes, optional consideration of individual securities
    • Asset class tree: Adaptation of the hierarchical asset class segmentation to the financial service provider's asset class selection and grouping
    • Reference currencies: Choice of different reference currencies for sample portfolios (e.g. CHF, EUR, USD)
    • Investment approach: Choice of passive and active investment approaches (i.e. consideration of your firm's TAA or active investment instruments where appropriate); nominal value based approach by default, with the option of a risk-based approach
    • Portfolio characteristics: Selection of portfolio look through reports on portfolio composition and risk measures (SRI, rating classes, issuers, etc.)
    • Management of portfolio rebalancing: Decision on timing and frequency; initiation of rebalancing managed by the partnering financial service provider or outsourced to True Wealth
    • Integration: Choice of integration as digital solution (e-banking) and/or as multi-channel solution (client advisor supported in the advisory process and e-banking)

    Do you have additional requirements? Please contact us.

Investment approach

  • How does True Wealth determine the risk tolerance?

    True Wealth uses an online questionnaire to determine the risk tolerance of clients, respecting the latest regulatory requirements of FIDLEG and MiFID II. If your financial institute already deploys an updated risk profiling process, this process can also be used. Additionally, the customer's existing risk profile may be used to avoid additional profiling.

  • What is True Wealth's investment approach?

    True Wealth pursues a passive investment approach. Read more here

    If you would like to offer your clients an actively managed portfolio in addition to the passive investment approach, our software may consider your tactical asset allocation (TAA). For further information on this topic, please contact us.

  • Can financial service providers adjust the investment universe to fit their requirements?

    The investment universe can be fully adapted to the needs of the partner and its customer base. It is important to note that multi asset class funds that combine different asset classes in one fund (such as equities and bonds) do not fit well with True Wealth's unique portfolio customization feature.

  • Does True Wealth support financial service providers in the definition of the investment universe and sample strategies?

    Yes, we are happy to support you in the selection of suitable investment instruments and the definition and maintenance of the sample strategies.

Integration

  • How does True Wealth integrate its solution?

    The online wealth management service is integrated as a Software-as-a-Service solution with all data storage in the country desired by the cooperating partner.

    The solution is integrated into the financial service provider's front-end as a software component (applet using iFrame technology) and supports desktop, tablet and mobile optimization (responsive design).

    The information exchange of position and trading data between True Wealth's back-end and the core banking system is achieved by a fully-automated data interface (API).

    Customer authentication is achieved by the partner's Identity and Access Management Software (IAM). True Wealth does not know or store any customer identifying data (CID) such as client names.

  • How long does an integration project typically take?

    Typically, an integration project takes 3-6 months, depending on the scope of integration and the specific requirements by the cooperating partner.

Custodian

  • Who is the custodian bank when cooperating with True Wealth?

    Typically, the wealth manager, i.e. your financial institution, is the custodian bank.

Distribution

  • What marketing support does the platform offer?

    We set high standards in transparency and usability. Prospective customers are introduced to the product and its functionalities via a multi-stage process, which includes a virtual test account. This process is well suited for targeted communication with potential customers.

  • Can the online wealth management solution be used in combination with a client advisor?

    Our platform provides your customers access to a professional self-service investment solution. The intuitive interface enables customers to easily and independently navigate through the various functionalities, benefiting from an investment service that is accessible independent of time and place.

    However, we understand that certain customer groups seek interaction with a client advisor or customer support before investing. Naturally, our solution supports such interactions and provides technology such as impersonation for effective customer servicing.

    It is also possible to integrate True Wealth's solution into a digital advisory process. For further information, please contact us.

  • What languages are supported?

    The software is available in multiple languages. We are happy to store your desired languages.

Customer support

  • Does True Wealth provide support for cooperation partners and their staff?

    Yes, we provide technical and functional support for cooperation partners via phone or e-mail.

  • Does True Wealth provide product training?

    Yes, we provide training on the wealth management solution and its functionalities in webinars or on-site. We are happy to define a training concept adjusted to your needs.

Pricing and costs

  • What is the price charged to end customers?

    The pricing of the discretionary mandates managed by the True Wealth solution is set by the cooperating financial services provider.

  • What is the cost of True Wealth's solution for financial service providers?

    The compensation for True Wealth's online wealth management solution includes two components:

    • One-time project/setup fee: Remuneration to cover product integration, implementation of corporate design, API adjustments and training of staff. The costs depend on the actual integration efforts.
    • Recurring SaaS fee for licensing and maintenance: This fee includes, among other things, the use of the True Wealth solution, the costs for infrastructure and hosting, maintenance, IT and business support (2nd level support). The SaaS fee is calculated on the average assets (AuM) managed by the software. Please contact us for a quote.