All About Privé's AI-driven Portfolio Construction Engine

5 minute

Aiming to target the wealth management megatrend of personalization is a goal that every financial institution should be having to stay competitive. However, achieving this can be a difficult and complicated process. Recognizing this need, Privé developed AI GO– our AI-driven portfolio construction engine, which uses genetic algorithms to generate tailor-made portfolios for all types of investment strategies. AI GO targets the large market potential of retail clients while catering to ever-changing risk-appetites and personal preferences like ESG.

Learn more about our patented technology in this Q&A!

What personalization options are available?

AI GO allows end-users to experience a variety of customization options. These can be financial key figures such as a return or sharpe ratio goal, a volatility cap, as well as asset classes, FX preferences, ESG considerations and many more. In addition, we have fifteen standard thematic choices that cover many different industries, from areas such as Gold to Aging Societies and Healthcare.

Can preferences be customized?

Yes! Clients can choose to include additional and specific factors as needed, or take away those that they do not offer.

How does AI GO personalize portfolios?

AI GO uses genetic algorithms to personalize portfolios. In our system, client preferences are evaluated using what Privé calls ‘fitness factors’. Different fitness factors are therefore used to help define the objectives of the investor. The aggregation of all fitness factors results in the total fitness score, which is what evaluates the quality of a portfolio. The closer a portfolio is to the investor’s choices, the higher the fitness score. Using genetic algorithms, randomly generated portfolios compete with each other and are re-worked and re-generated in a big-data like approach until the fitness score is as close as possible to the best-fit.

What type of businesses can benefit from using Privé's AI GO solution?

Privé’s AI GO is fit for all financial institutions, but particularly empowers retail clients to access wealth management tools typically only available for HNW and Private Banking clients. As such, AI GO services Banks (Retail and Private), Insurance Companies, External Asset Managers, Insurance Brokers, Securities Firms and (Online) Brokers, just to name a few.

What data sources are available?

AI GO uses data from a large variety of trusted global data providers, but organization-specific and alternative data providers can easily be integrated.

How is AI GO integrated into existing systems?

Privé’s AI GO is a modular solution built with our plug and play platform–simply put, AI GO integrates seamlessly with existing infrastructure via APIs. Thus, a wholesale replacement of existing systems is not necessary, keeping overheads and downtime low.

What kind of reports does AI GO create?

AI GO is able to generate in-depth custom reports that highlight important information about a portfolio's behavior, including asset class breakdown, crises performance, risk and return analysis and goal attainment.

Does AI GO comply with regulatory requirements?

Of course. Ensure you are always staying in compliance with regulatory requirements and fully transparent to your client about what makes up their portfolio with AI GO's fully-compliant advisory protocol.

As a new generation of digital natives move into wealth management, digital alternatives such as AI GO are in high demand. AI GO can do so much more than just personalization: it encourages customer retention and engagement by involving them more heavily in the portfolio construction process. It also relieves advisors of the burden of portfolio optimization, allowing them to focus on what truly matters: the clients.

Find out how we can make AI GO work for you today: get in touch with

About Privé Technologies

Founded in 2011, Privé Technologies is a leading Software as a Service (SaaS) provider digitizing wealth management services of Banks, Asset Managers or Insurers. Our suite of products spans from client acquisition, digital onboarding and robo-advisory solutions, to portfolio construction, AI optimization, portfolio management (PMS), portfolio monitoring and reporting, to account aggregation, and more. Our lego block approach allows clients to choose and assemble unique journeys using Privé modules to suit their individual needs, such as fully digital Advisor-led wealth management journeys or end-to-end robo-advisory solutions. Privé Technologies services over 70 blue-chip clients across 16 markets globally and currently has offices in Hong Kong, Singapore, Taiwan, South Korea, Thailand, Germany and Austria.

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Rutul Gandhi

Chief Revenue Officer, APAC

DISCLAIMER: This press release is for information purposes only. Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Privé does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Privé and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages. Privé assumes no obligation to update any information contained herein.