360F (Singapore) Pte Ltd
Contact person: Clarie Kwa
Email address: [email protected]
Contact number: 81633989
Asia and ANZ
The Digital Insurer Startup InsurTech Award
360F advances wealth advisory in Asia by solving two critical issues.
The first issue is about the customer acquisition. It is a major value leak, resulting in high distribution expenses which in turn lead to unsustainable direct distribution models and distrust of intermediaries. However, wealth advisory is beneficial – people who use advisory have retirement plan savings almost 50% higher than those without. This market problem is thus crucial to solve.
The second issue is a social problem. Smartphone invades the family and threatens the family bond. The usage is universal but family members neglect each other as they are absorbed by the device even when physically together.
The 360F solution “Multi-Generation Investment Genie” solves these two problems. A mobile family app, it collates or pools members’ financial goals, contributions and plans. It also resolves financial trade-off dilemmas “under one roof”. This app brings down distribution expenses by successfully integrating lead generation as an inherent feature. The family is a natural society unit to leverage the network effect, supporting lead generation and conversion. The app features and design further support family bonding via group interaction functions and pedagogy-based financial education. A strategically designed rewards and content system reinforces the network and bonding effect.
360F is strategically partnered for research with University of St. Gallen and Zurich for Behavioural Finance as well as Singapore Management University for Marketing Analytics.
The wealth advisory support featured in the solution “Multi-Generation Investment Genie” is backed by behavioural finance research. Five modular functions are available and can be deployed independently outside the app for an individual distribution channel.
1. Goal Explorer: Long term planning tends to be daunting as the future is difficult to imagine. Goal Explorer helps the client to envision the future tangibly and encourages positive emotions. It offers up-to-date data points to relieve the cognitive effort that otherwise creates the inertia to plan. Designed to be configurable for the advisors and markets, Goal Explorer is flexible and transparent.
2. Risk Sensibility: Via a series of decision making games, Risk Sensibility measures the client’s risk tolerance. It is based on an amalgamated methodology incorporating the utility function (prospect theory), experience sampling and socioeconomics to measure the risk awareness, preferences and ability. The module also auto-calibrates to fit clients’ financial context and evaluates via a sophisticated score-based system that allows easy deployment. Risk Sensibility is thus always a reliable and suitable measure for risk and servicing needs.
3. Trade-off Optimizer: An algorithmic engine to help resolve the financial dilemmas between competing goals by optimizing money allocation, this optimizer is human-centered. It comprises a utility function that incorporates a logical (sense) baseline built on factual objectives & constraints and emotional (sensibility) dimension - thus the client is confident in the final decision.
4. Clairvoyance: The human being’s optimism bias often leads to underestimated future risk. Clairvoyance offers clients the opportunity “sample experience” market volatility and biometric risks, guiding forward thinking. Seeing for self beats being told by others. Highly configurable, the module is especially suited for a self-directed exploration to uncover both wealth protection and growth needs.
5. Unified Portfolio Creator: It automates the build of a holistic and truly personalized wealth portfolio, and supports suitability in recommendations. Asset allocation and life insurance decisions are integrated, with human capital as the central factor, to maximize the individual’s overall utility.
Personalization inputs include existing and expected cashflows, financial constraints, risk-return expectations and even attitude towards inheritance and subjective health assessment. The Unified Portfolio Creator is highly configurable by the available product universe and the corresponding cashflows.
The “Multi-Generation Investment Genie” builds up and maintains the network momentum in two ways that also reinforce each other’s effectiveness.
Firstly, it keeps up the usage motivation via an encompassing rewards system targeting individual and group activities on the app. A recommendation system engine further manages the content feed to educate and engage.
Secondly, it converts, retains and refers users by enabling open co-sponsor networks for each goal. Sponsors to the user’s goals are encouraged by the visibility of how their contributions have fared over time. Kid-friendly access promotes the child’s enthusiasm to play-interact-learn, in turn encouraging parents and sponsors to be active on the app. The app is naturally extendable to other natural group units such as friends and employees.
360F “Multi-Generation Investment Genie” bonds a family through wealth advisory. It has a credible chance of waking the financial services distribution from its slumber.