Empirica among innovative companies at the Trading CEE conference

On 26th of October 2017, the “Trading CEE: Equities and Derivatives” conference took place in Warsaw. This is one of the most important financial industry related events in Central and Eastern Europe. The co-organizers of the event were the Warsaw Stock Exchange, the Global Investor Group and the National Depository for Securities. Michał Różański, CEO of Empirica took part in a panel devoted to the future of the fintech industry.

The Trading CEE was held in Warsaw’s Hilton hotel, where several hundred capital markets experts had the opportunity to talk about such important issues as the Mifid II regulation, or the scale of the fintech revolution in Poland and internationally.

They also discussed the decision made recently by FTSE Russell (the supplier of indices belonging to the London Stock Exchange group) to change the status of Poland from that of an Emerging Market into that of a Developed Market and considered the significance of this shift for the national economy.

Among many of the excellent speakers, we had the change to listen to Marek Dietl, President of the Warsaw Stock Exchange and Toby Webb, Head of EMEA Information Services FTSE Russell. The inaugural panel on the opportunities and threats facing investment markets in our region gathered such experts as Ales Ipavec, head of the stock exchange in Ljubljana, Richard Vegh from the Budapest Stock Exchange, Ivan Takev, head of the Bulgarian Stock Exchange and Head of International Sales of the Moscow Stock Exchange Tom O ‘ Brien.

Fintech Innovation Forum

The panel regarding the fintech industry was very popular among visitors, especially the topic of the development of tools based on artificial intelligence and their impact on investment markets in Poland. It was organized in such a way as to allow for 4 of the most promising Central & Eastern European companies in the modern financial technologies industry to present what they offer. One of the main participants of this part of the Trading CEE conference was Michał Różański, CEO and founder of Empirica, the fintech software house.

During his speech, he focused mainly on the presentation of innovations in the field of robo-advisors, which are already revolutionizing the global investment market.

– The robo-advisor platform is not only the future, but the present of wealth and asset management. Our Empirica Robo Advisor service stands out in the international market above all through its very high level of support for advisors in their work with the service’s users. All this is thanks to solutions in the field of AI analytics, which allows them to receive a full picture of the actions taken in the user profile and to quickly respond if these actions threaten the assets, which in the end also reduces the risk of losing the customer. Another important element of our consulting service is the fact that we have built it based on the strong foundations of our platform for Algo Trading. Thanks to it, our robo-solution has fully automated access to the data stream coming from the most important financial institutions at every stage of the Empirica Robo Advisor process. – explains Michał Różański.

New generation of users

Platforms from the robo-advisor category not only democratize investment opportunities, but also reduce the price of consultancy services. In an era of technological revolution, a millennial generation is slowly entering the capital market- people accustomed to continuous presence in the online world. Advisory platforms will enable it for them. Friendly user interfaces, notifications that they know from social media and an automated transaction system based on a personalized portfolio are already present in the fintech area. However, in order for these tools to function in such a complicated environment as the financial market, powerful computational engines based on artificial intelligence (AI) must be behind them. Empirica helps financial companies enter this world by providing an advisory platform that automates the asset management processes and is based on innovative solutions in the field of data processing. – adds the CEO of Empirica.

 

Empirica is a Wrocław-based company that offers services such as an Algorithmic Trade Platform implemented with successes on the Warsaw Stock Exchange, solutions from the category of fully automated advisors (robo-advisory platforms) and software built on the basis of blockchain technology.

FCA encourages robo advice models to deliver lower cost advice

Project Innovate and it’s move to improve Financial Technology (fintech) across the industry has had a very positive reception across the UK. What project innovate initially set to achieve, was to tackle regulatory barriers to allow firms to innovate in the interest of consumers.  

As part of Project Innovate, Financial Conduct Authority (FCA) launched the Advice Unit. The Advice Unit is a special support unit focusing on models that provide a ‘personal recommendation’ or ‘discretionary investment management’ for their clients and particularly on automated advice models, including fully or partly automated online advice.

To apply and receive regulatory feedback from the Advice Unit, firms need to demonstrate how their model meets Advice Unit eligibility criteria. In that regard FCA sets out a schema of negative and positive indicators.

Among the positive indicators, the Advice Unit strongly encourages firms to model their service around those consumers who do not have significant wealth or income. Their models should have the potential to deliver lower cost advice to unserved or underserved consumers. Moreover They will need to be able to demonstrate that they offer a genuine consumer benefit.

Additionally firms also need prove that their model is an automated advice proposition. FCA’s website for this matter states firms who wants to qualify for regulatory feedback, should have a system that the “core element(s) of the customer journey is automated. This may include some of the following: collecting fact find information, collecting underwriting information, conducting customer risk profiling, undertaking a suitability or appropriateness assessment,  identifying suitable debt options, etc.”

Firms that meet the Advice Unit eligibility criteria are given regulatory feedback on their model. This could include:

  • an initial meeting with the Advice Unit, and other specialist areas of the FCA if needed, to discuss the proposition
  • for firms requesting ongoing engagement, a dedicated point of contact in the Advice Unit to provide regulatory input at agreed milestones
  • specific feedback on the regulatory implications of the model – this could include follow-up meetings with relevant FCA staff to discuss specific issues, informal steers, and individual guidance as appropriate
  • input on how to apply for authorization if the firm is currently unauthorized