How Fincite Uses Morningstar Data to Digitise Private Banking Experiences

Fincite, the Germany-based developer of wealth technology software, has a straightforward ethos—wealth simplified. How do they do this? By enabling private banks and wealth management firms to digitise and optimise the customer experience.  

In just a few years, Fincite has rapidly expanded its global presence. Already a major player in their native Germany—Fincite won the 2024 Fintech Germany Award—the organisation serves clients worldwide, from the United States and Switzerland to Denmark and the Netherlands, to name a few.  

One of the driving forces behind Fincite’s software? Morningstar’s high-quality market data. 

As Fincite’s Director of International Private Banking, Christian Hanke has seen the number of clients needing better data and technology skyrocket in recent years. 

“Technology, data, and investor preferences have all evolved,” Hanke comments. “So private banks need to evolve too. Look at the advisory process in wealth management. The traditional model is discretionary portfolio management. Firms take a client’s money, risk appetite and preferences, and manage the entire process. 

But we’ve seen a sharp increase in clients who want to be actively involved, deciding which funds, bonds, or equities to include in their portfolio. Yes, they expect the bank to still advise them, but it’s a lot more involved. The banks themselves need more data to help clients construct a portfolio: up-to-date market data, risk metrics, sustainability scores and so on. 

But banks also need the technological infrastructure in place to create a streamlined, user-friendly experience. That’s where Fincite comes in. Our software—powered by Morningstar data—enable firms to digitise the customer experience and lifecycle. That could be through onboarding or reporting for both the relationship manager and end client.”

While clients have access to more data than ever, one key metric has remained the same—performance.  
 
“Performance reporting is at the top of the agenda for our clients,” Hanke notes. “They need to know how their portfolio is doing, what they’re exposed to, which equities make up which funds and so on. Our software takes Morningstar’s data feeds, consume them, and using the ISIN we surface all the information through our easy-to-use software.

While the industry has advanced, some private banks and wealth management firms still struggle with outdated technology. It’s a major issue. Clients demand intuitive, user-friendly digital experiences. They want to login to their accounts and easily see how their portfolios are performing. It’s a non-negotiable for them. They’re actively seeking out firms with top-tier digital experiences.  

It’s good business sense for private banks and wealth management firms to not just update their technology and experiences but try and make them competitive. It’s a real USP with tangible benefits. Digitised firms have a streamlined and efficient advisor process with stronger client relationships. Internally, they benefit from increased productivity as they move away from spreadsheets and PowerPoints towards more tailored and advanced technology.”

Investor preferences have evolved dramatically, especially when it comes to sustainability.  

“We’ve seen a new type of client emerge in recent years,” Hanke notes. “They’re concerned about ESG, sustainability, and impact investing. While they’re mostly younger, we see clients of all ages focus on sustainability in their portfolios.  

Private firms not only need to evolve their technology, which is key to appealing to a younger demographic, they also need to evolve their thinking around ESG. This is vital to satisfy regulatory requirements, like MiFID II.  

Our software is designed to showcase sustainability considerations easily at the fund level; all this data comes from Morningstar.”  

When it comes to ESG solutions, Fincite knows what it’s talking about. In 2024, the company was included in the ESGFinTech100, an annual list of the world’s most innovative ESG companies. Selected by a panel of industry experts and analysts, 2024 marks the third year in a row that Fincite has been recognised for its work.

Fincite continues to expand its global presence. The firm has a lot it wants to achieve, but some key goals standout. 

“We’re well-known in Germany,” Hanke comments. “Our clients span several countries, and many of them are international organisations themselves. However, we’re particularly excited about the Swiss market. 

Switzerland is an established hub for private banking and wealth management firms. Some have been operating for decades, so there are major players. But despite the region’s reputation, many firms still haven’t got their digital experiences where they need to be, especially at a time when they need to reduce costs, attract new clients, and streamline their processes. 

We feel we can bring our expertise to this market. There’s a real opportunity for growth, so we’re excited about the future. The more markets and clients we serve, the more data we’ll need, so Morningstar will play a crucial role in our expansion.” 

To learn more about Fincite, visit www.fincite.de or book a personal demo with Christian Hanke. 

Christian Hanke has not received any cash or non-cash compensation from Morningstar, directly or indirectly, in exchange for this client success story.