Robo-Advisor core components
March 21, 2022
Marketing Team

A contemporary Robo-Advisor engine considers a variety of parameters before advising the customer on where to invest their hard-earned money. Thanks to robo-advisory software development, their income, marital status, financial objectives, and dangers are analyzed before an automated investment is put on their behalf.

Many banks and wealth management firms view robo-advisory applications as an opportunity to expand their reach and reach new consumer categories.

How does Robo-Advisor actually work?

Like their human counterparts, Robo-Advisory technologies rely on data analysis and market expertise. On the other hand, an algorithm carefully calculates every step, whereas people tend to play it by ear.

In a nutshell, a robo-adviser is a web-based technology that provides automated wealth management with low capital needs. Clients fill out a form, which provides enough data to the AI-enabled engine to discover the best investment possibilities for their personal financial history and aspirations.

After completing the initial setup and verification, the program creates an investment portfolio using advanced algorithms. The program invests in stocks, bonds, real estate, currencies, precious metals, and other commodities.

Check our FREE Robo Advisor Case Study - Click here!

Core components for a Robo-Advisor

The list consists of the features and procedures required for the system to function. It should be noted that, while most of the key features mentioned here were created for the customer, some of the functionality is designed for managing investors.

The dashboard for investors. A single point of contact for portfolio performance analysis, investment management, and all communication and reporting.

Engine based on algorithms. A collection of algorithms developed by financial experts and coded by software engineers to adjust the client's portfolio based on their goals and risks.

Onboarding new investors using a balance forecast. Registration and Know Your Customer verification tools, investor risk profile, and a visual depiction of a predicted balance are available for further interaction.

Portfolio rebalancing and asset allocation. Asset management that is automated in accordance with the risk and allocation targets that have been established.

AI-assisted behavioral analysis. Tools for studying and forecasting customer behavior using transaction data and AI-powered algorithms.

Portfolio construction and optimization. According to the Modern Portfolio Theory, essential management tools such as model portfolio development and portfolio management are required.

Analysis of the portfolio's health. A bundle of tools for assessing various data and modifying the client's portfolio. The information acquired during the procedure can eventually be utilized to fine-tune portfolio offers.

Questionnaire creator. A function that comes in handy when creating risk profiles. Supervising wealth managers might develop questions of various complexities for the onboarding step.

Our team of experts and technologies

The team is diverse, with members from mindit collaborating closely with our client's team. We covered primarily the development part.

The technologies used are Java 8 with microservices architecture, Sprint and Jersey for BE, JavaScript with React for FE, Redux with Redux Thunk as a middleware for state management and React Native for the mobile apps.

Results and Impact we achieved

Our relationship with the client has lasted for more than three years as of right now, with a roadmap planned for next year as well. Together we had countless releases, expanded the reach and number of customers, improved processes, and increased confidence in the product and its capabilities. This platform grew a lot in these years, along with our ambitions, skills, and goals. The benefits were mutual, as we had continuity on this project, and we now know the product very well. We understand the end-user's needs in this niche (thus, making life easier for the end-user by adapting and implementing the requests faster). We mind your business, and we grow together.

We are happy to assist you with quality software

Our proven expertise and outstanding technologies make us an ideal partner that you can trust. We are developing solutions with great care for details and creating a user experience that suits your company and client needs. Plus, we are more than an adopter of innovative technologies; we are a partner with a mission to simplify processes and improve the quality of the software created by combining teams of dedicated experts and powerful tools that shape the modern outsourcing market. We are here to make your ideas reality and your services or products a statement of quality and digital innovation!

Talk to the team