Hungarian fintech reaches milestone
It was almost a year ago when Károly Gerendai, one of the founders of Hungary’s world-famous Sziget Festival, and his former fellow owners of Sziget Ltd. ventured into a whole new area, the realm of fintech, and bought a stake in Dorsum. Read more about the deal and more in a Portfolio interview with Károly Gerendai and Róbert Kő, CEO of Dorsum.
Dorsum, a company that has been on a global expansion tour for four years now, mostly develops digital asset management solutions for banks on international markets. Its CEE-focused global expansion has now reached a milestone. BNP Paribas Bank Polska, one of the leading private banks in Poland with a market share of roughly 14%, 140,000 premium banking and 5,000 private banking clients, has decided to implement a new digital portfolio management solution, Dorsum's Wealth Management Platform.
The Wealth Management Platform has already been in use in several financial institutions across the CEE region, including the Hungarian and Slovakian subsidiaries of Raiffeisen, K&H Bank (the Hungarian arm of KBC Group), Slovenia's Nova KBM Bank, the Romanian operation of Hungary's OTP Banki, and Banca Transilvania. Within BNP Paribas it will be the tool that supports more than 250 new relationship managers.
Dorsum set the strategic goal of becoming market leader in Central and Eastern Europe as a wealth management technology (wealthtech) company. It is also prioritising banking groups present in several countries at once, and it is fine-tuning its entry strategy to additional markets in Europe.
Platform developed for private bankers
Dorsum has various products in its offering. BNP Paribas is to implement the Wealth Management Platform, which is a front-to-mid software which integrates multiple functionalities in one system with high level of user experience. The new system will support premium advisors and wealth management relationship managers with 360-degree wealth reporting, Mifid II compliant advisory workflows, investment portfolio advisory. The source data will be aggregated form numerous source systems and the enriched data published to other banking systems via APIs.
At FinovateEurope earlier this year, Dorsum presented its My Wealth app, which combines traditional and digital advisory processes to provide clients with a broader, more comprehensive view of their investments. The app features a self-learning chatbot, automatic portfolio notifications, and news, and supports the ability to reach out to the client’s financial advisor via a variety of channels.
The system developed for private bankers basically offers a faster and more efficient service, and Dorsum has so far experienced the following:
- 30% shorter time spent with administration;
- it takes 25% less time for private bankers to prepare for talks with the clients;
- 50% smaller system-operation and licencing costs, as the different client segments (private, premium and wealthy retail customers) can be managed inside a single system;
- the 360-degree wealth reporting increases the efficiency of consultations with clients by 7%;
- retreiving and preparing comprehensive portfolio statistics takes 50-60% less time.
Imre Rokob, Director of Business Developmetn at Dorsum, said digital servicing and the 360-degree wealth reporting are becoming basic requirements, but clients cannot be tended to exclusively via digital channels; the future belongs to hybrid services:
While almost every banking segment is moving towards exclusively digital services, the human role, the role of the consultant will remain crucial for a long time in the world of investments.
He explained that while customers are relaxed transfering money or taking out personal credit online, when it comes to multi-year or multi-decade savings, they want to devote time to the matter and talk their decision through with an expert. "The new solutions would need to make this "hybrid" version, the combination of personal and digital services more efficient."
Rokob also talked about the development of the newest modul in Dorsum's Wealth Management product family which started this year. "The goal of the Communication HUB is to build a digital connection between the constultant and the client. This product is built on chat bases, but it can also manage product offers, notifications linked to portfolio events, educational elements, the sending, receipt and digital signature of documents, while making all communication traceable and verifiable," he added.