Elvia insurance company has launched a robo adviser in Switzerland, adding to the growing number of automated banking providers. Elvia eInvest’s CEO told finews.asia what targets he aims to achieve with the service.
Elvia eInvest is the first Swiss insurer to launch its own robo adviser. The unit of Allianz Suisse today announced that the service, which will be available online only, comes with a fee of 0.55 percent of the average deposit.
The fee also includes trading commissions, payment services and changes to the portfolio allocation. The cost of exchange traded products of 0.25 percent will be added to the basis 0.55 percent fee.
Cautious Forecast
Klaus Thaler (pictured below), in charge of Elvia eInvest since July, remains cautious in his forecast: «We aim to manage 1 billion Swiss francs in client assets within a ten year period,» he told finews.com in an interview.
His caution is understandable, given the difficulties that robo advisers in Switzerland had to acquire assets, despite the low fees charged. Part of the reason may be a certain skepticism about the reliability of the technology and a lot of potential investors have other priorities.
Cause for Optimism
Thaler still sees an «enormous» demand for simple and cheap investment solutions, not least for pension provisions.
The advantage of Elvia eInvest may be the large customer base of its owner Allianz Suisse. The company has more than 1 million clients in the country and a network of about 120 branches across Switzerland, making it easier to acquire customers for the new service.
ETF's First
Elvia developed the robot with Additiv, the Zurich-based fintech. The identification of a customer is video-based and contracts are signed electronically. The minimum deposit is 5,000 Swiss francs.
Exchange traded funds (ETFs) provide the backbone of the service, which are divided up into nine categories covering bonds and equities across the world.
«We are investing client assets in the ETFs with the highest score in relation to cost and liquidity,» Thaler said. Each portfolio contains at least six ETFs for reasons of diversification.
