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April 11, 2016updated 05 Sep 2016 11:29am

Fintech Profile: Quotip, using machine learning to reduce complexity for wealth managers

Accenture’s Fintech Innovation Lab finals day will be held on April 12th when finalists and prospective investors will meet in London. In the run up to the event CBR profiles the finalists.

By James Nunns

Accenture’s Fintech Innovation Lab initiative is an accelerator programme designed to put the best fintech start ups in front of potential banking customers and investors – we interview those that made it to the final.

Company: Quotip

 

CBR: Describe your solution in technical terms

Quotip: "We help to introduce investors into the financial product industry and help them find ideas in any product environment by using a machine learning based algorithm.

"Traditional banks have a big trading desk for pricing products but for many it is not economical to do that in the same way. So we came up with an idea for machine learning to extract information from the exchange.

"In Switzerland there are lots of products listed on an exchange, if you look at them there is something like 35,000 on the Swiss exchange. We will extract information from the prices that are fed from investment banks to the exchange and with this information we can incorporate pricing and feed that back to customers."

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CBR: What problem does it solve and what opportunity does it create?

Quotip: "The problem now is that the buy side, private side and asset managers that want to buy structured products have to ask different liquidity providers. You have Morgan Stanley, Goldman Sachs and others issuing products.

"In today’s markets the problem is that the buy side are highly dependent on generating ideas. So a relationship manager from a buy side will call up a sales guy at an investment bank and ask if they have a good idea of something to invest in. They then contact the trader and come back with an idea that matches the risk needs, the sales person then feed that back to the buy side product manager.

"The buy side buying from the sale side does not match the needs of the client – there is a conflict of interest.

"We’re trying to give a tool to the buy side that lets them come up with interesting ideas. We are a completely independent provider for structured products."

 

CBR: Why is it unique?

Quotip: "Because today’s offerings in the market are these platforms that are not as sophisticated as ours and are provided by the liquidity providers themselves.

"In Switzerland there are two different platforms to use for investing in structured products and they are not independent.

"Being independent is important and so is incorporating client prescriptions and so is portfolio allocation. In the future we will do this and create a product that matches the risk portfolio."

 

CBR: What language is it built in?

Quotip: "We use Python and on the front-end we use HTML and CSS. At some point we want to be able to connect the platform to liquidity providers so that the private bank can connect with investment banks."

 

CBR: What platform is it built on?

Quotip: "It is built on Python."

 

CBR: Which best described your technology: it is a cloud solution. It is a SAAS solution. It is a third platform solution.

Quotip: "Quotip is a web based platform. The buy side can access a tool through a web service, so cloud based solution.
"The client data though, that always stays with the buy side, we don’t have any client data in the cloud. We access that data on the buy side on-premises and we have to get special permissions to access that data."

 

CBR: Describe the culture of your company.

Quotip: "We have three part time working at Quotip and one that is full time so we are a small team but we have talked to banks and identified the next steps so we can better execute on our plans.

"Quotip was founded in April 2015 and we now have a prototype running with asset managers and we’ve shown a lot to the buy side in Switzerland.

"We now have a very good idea on how we can move forward but don’t have any customers yet."

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