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MKB Bank debuts robot advisors

MKB Private Banking has announced the addition of robot advisors to its digital services, becoming the first player in Hungaryʼs banking sector to utilize such solutions, according to a press release sent to the Budapest Business Journal.

The new solution will guarantee improvements in three fields, according to the press release: sophisticated tool allocation, model conformity, and fast product information. The new system is expected to be able to provide up-to-date information about tools in investment portfolios, allowing advisors to create completely customized portfolio offers for their clients, in accordance with the current investment guidelines.

The development provides MKB Private Banking with an increase in cost efficiency, leading to more efficient client acquisition and retention, while also allowing a more proactive service and higher performance investments for clients, claims the press release.

Such solutions are quite common on developed financial markets, with examples such as Robo-Advisor in Germany, Scalable Capitalʼs software developed for Santander Openbank in Spain, or SigFigʼs digital solution for Wells Fargo in the U.S.

Blueopes Zrt., with MKB Fintechlab acting as its main investor, is a developer of asset management platforms for financial, holding, and investment companies. Blueopes won "Best Hungarian Fintech Startup" at the Central European Startup Awards in 2017, as well as BBVA global groupʼs "Best Fintech for Sustainable Finance" award in 2018.

"MKB Private Banking is one of the domestic private banking marketʼs most definitive players, with one of the largest stocks and clienteles," said MKB CEO Ádám Balog. "Personal advisory, a long-term, regular, direct human relationship, is a defining element of our services. We believe that the private banking service and investment advisory - with the advancement of digitalization - will remain an activity strongly connected to people."

"Cooperating with Blueopes Zrt., we created a Decision Support and Tool Allocation system, which is aimed at effectively supporting the work of our private banking advisors during the compilation of client portfolios," Balog added. "We call the model a ‘hybrid advisory model,’ as it successfully combines the benefits of personal service and modern digital technologies."