FinTech innovation : from robo advisors to goal based investing and gamification Chapter 2: Robo Advisors: Neither Robots Nor Advisors2.1 Introduction; 2.2 What is a Robo Advisor; 2.3 Automated Digital Businesses for Underserved Markets; 2.4 Passive Investment Management with ETFs; 2.5 Algorithms of Automated Portfolio Rebalancing; 2.6 Personalized Decision Making Individual Goals and Behaviour; 2.7 Single Minded Businesses; 2.8 Principles of Tax Loss Harvesting; 2.9 Conclusions; Chapter 3: The Transformation of the Supply Side; 3.1 Introduction; 3.2 The Investment Management Supply Demand Chain; 3.3 How Intermediaries make Money 3.4 Issuers of Direct Claims (Debt Owners)3.5 The Institutionalization of the Private Banking Relationship; 3.6 The Digital Financial Advisor; 3.7 Asset Management is being Disintermediated; 3.8 ETF Providers and the Pyrrhic Victory; 3.9 Vertically Integrated Solutions Challenge Traditional Platforms; 3.10 Conclusions; Chapter 4: Social and Technology Mega Trends Shape a New Family of Taxable Investors; 4.1 Introduction; 4.2 Generational Shift (X Y Z and HENRYs); 4.3 About Transparency Simplicity and Trust; 4.4 The Cognitive ERA; 4.5 Conclusions 6.2 Foundations of Goal Based Investing6.3 About Personal Needs Goals and Risks; 6.4 Goal Based Investing Process; 6.5 What Changes in Portfolio Modelling; 6.6 Personal Values; 6.7 Goal Elicitation; 6.8 Goal Priority; 6.9 Time Horizons; 6.10 Risk Tolerance; 6.11 Reporting Goal Centric Performance; 6.12 Conclusions; Chapter 7: The Investment Journey: From Model Asset Allocations to Goal Based Operational Portfolios; 7.1 Introduction; 7.2 Main Traits of Modern Portfolio Theory; 7.3 Main Traits of Black Litterman; 7.4 Mean Variance and Mental Accounts A survival guide for the FinTech era of banking FinTech Innovation examines the rise of financial technology and its growing impact on the global banking industry. Wealth managers are standing at the epicenter of a tectonic shift as the balance of power between offering and demand undergoes a dramatic upheaval. Regulators are pushing toward a constrained offering norm while private clients and independent advisors demand a more proactive role; practitioners need examine this banking evolution in detail to understand the mechanisms at work. This book presents analysis of the current shift and offers clear insight into what happens when established economic interests collide with social transformation. Business models are changing in profound ways and the impact reaches further than many expect; the democratization of banking is revolutionizing the wealth management industry toward more efficient and client centric advisory processes and keeping pace with these changes has become a survival skill for financial advisors around the world. Social media big data analytics and digital technology are disrupting the banking industry which many have taken for granted as set in stone. This book shatters that assumption by illustrating the massive changes already underway and provides thought leader insight into the changes yet to come. Examine the depth and breadth of financial technology Learn how regulations are driving changing business models Discover why investors may become the price makers Understand the forces at work behind the rise of FinTech Information asymmetry has dominated the banking industry for centuries keeping the banknvestor liability neatly aligned but this is changing and understanding and preparing for the repercussions must be a top priority for wealth managers everywhere. Financial Innovation shows you where the bar is being re set and gives you the insight you need to keep up Chapter 5: The Industrys Dilemma and the Future of Digital Advice5.1 Introduction; 5.2 Wealth Management Firms: Go Digital or Die; 5.3 Asset Management Firms: Less Passive More Active; 5.4 Robo Platforms: Less Transactions More Portfolios; 5.5 Digital Advisors: Empowered Customization; 5.6 Robo Advisors: Be Human be Virtual take care of Retirement; 5.7 Conclusions: Clients take Centre Stage at Last; Part Three: Goal Based Investing is the Spirit of the Industry; Chapter 6: The Principles of Goal Based Investing: Personalize the Investment Experience; 6.1 Introduction Series Page; Title Page; Copyright; Dedication; Preface; Organization of the Book; Acknowledgments; About the Author; Part One: Personalize Personal Finance; Chapter 1: The Theory of Innovation: From Robo Advisors to Goal Based Investing and Gamification; 1.1 Introduction; 1.2 A Vibrant FinTech Ecosystem; 1.3 Some Definitions Ladies and Gentlemen; 1.4 Personalization is King; 1.5 The Theory of Innovation; 1.6 My Robo Advisor is an iPod; 1.7 What Incumbents should Consider when Thinking about FinTech Innovation; 1.8 Conclusions; Part Two: Automated Long Term Investing Means Robo Technology