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Privé Technologies

Wealth Management Solutions

Singapore
Market: Financial services, Other
Stage of the project: Operating business

Date of last change: 26.04.2023
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Idea

Prive’s B2B, API-enabled "lego blocks" provide end-to-end solutions for banks and other enterprises to provide scalable wealth management services and enable them to digitally transform.

Current Status

Privé has over 45 global EAMs/IAMs (in Asia and in Europe) on board at the moment , as well as four major global private banks using our module-based services. We also work with major retail banks, helping them offer wealth management level services to retail banking clients. Privé assists clients across Hong Kong, Singapore, Taiwan, China, Korea, Thailand, Malaysia, Indonesia, Germany and Austria.

Market

Founded in 2011 and headquartered in Hong Kong, Privé has an extensive office network in Singapore, Malaysia, Thailand, Taiwan, Korea and China, Germany and Austria. Privé services over 70 financial institutional clients globally, which include private banks, insurance companies, family offices, securities companies, external asset managers and independent financial advisors. Privé targets financial service providers who can leverage the company’s solutions to provide cutting-edge technology products which are highly bespoke and personalized, to their end clients.
Privé is in the midst of a rapidly growing fintech wealth management space. For instance, the total investable assets in APAC in 2017 was US$57.5T and is expected to reach US$91.7T with about 81.4% growth; similarly, the total investable assets in Europe in 2017 was US$77.2T and is predicted to become US$114.8T with about 48.7% growth. At the same time, assets professionally managed in Asia should rise from $12.1T to $29.6T, while the commensurate growth in AUM in Europe is from $21.9T to $35.7T. This burgeoning market is what Privé hopes to massively expand into, in order to consolidate market share. (Source for quantitative data: Asset & Wealth Management 2025 from PWC)

Problem or Opportunity

The cost inefficiencies and inability of traditional financial service providers have led to wealth management typically being inaccessible by the masses. This gap between the demand for and supply of wealth management solutions is what Privé aims to diminish through its embedded wealth solutions.

Solution (product or service)

Our technology enabled solutions help the financial institutions of today to streamline and transform, enabling them to operate more efficiently and effectively than ever before. The breadth of our suite of products is unparalleled in the financial technology industry. Over the past year, we have witnessed a paradigm shift in the wealth management space, as more and more providers begin to utilize technology to digitize various processes.

Competitors

To date, we have no direct competitors in the FinTech space in the SE Asian regions. While there may be numerous institutions offering certain aspects of the wealth management process, we have yet to come across another company that offers the entire breadth of wealth management solutions. Further, since we offer our APIs on a modular basis and white-label our solution, we put ourselves in a position to offer a truly unique offering in the market.

When we do go up against competitors, most of them are either incumbents (like a core banking provider) or a silo solution specialist (such as a data provider or portfolio management service provider) or a competitor who is already in the wealth management market that is offering its services as a vendor to other financial institutions. We believe that our architecture and technology provide a more scalable and validated solution in the area of digitized wealth management. Moreover, as an independent entity, we are not competitors to our B2B clients.

Advantages or differentiators

What makes Privé's solution so valuable is that Privé’s proposal is an integrated and modular solution, which enables us to augment existing systems without having to undergo a wholesale replacement or exchange of a system for a client. Since each of our modules are able to integrate easily through scalable microservices with the existing system and only with respect to functionality that is required or wanted by the client, it enables our system to maintain the inherent customer journey that is unique for our clients and the end investors.

This is what effectively puts us into a league of our own. Traditionally, financial institutions use several third-party service providers to deliver the financial services and build their wealth management processes. While these third-parties may provide top of the line functionalities with reference to the module that they offer, it results in a fragmented delivery. There will be a certain amount of manual integration required for the third-parties to be able to communicate with one another.

Our value lies in the fact that we are able to provide numerous modules that integrate and work together seamlessly. We are able to deliver an ecosystem catered for the end to end wealth management process. This allows our clients to provide a seamless and holistic wealth management experience to their clients. The fact that the platform is multi-asset, multi-lingual and multi-jurisdiction, the Privé platform is conforming to a wide range of use cases and functionalities for clients of all magnitudes. Our modularity enables financial institutions to simply pick and choose the functionalities that they require to quickly and effectively roll out. Once adopted, clients can choose to integrate more modules from those that we offer or request more functionality via additional modules; we are able to do so immediately, and effortlessly, integrate the additional and new module(s) so that data transfer is seamless and utilization of such data is efficient and can cross multiple digital touchpoints.

Finance

Privé is able to generate revenue by being able to charge fees at various touchpoints of the value chain, namely, (a) a usage/license fee for the lead-generating software platform, which is recurring, (b) an AUM-based fee for vFunds/Model Portfolio generated by its robo-engine and (c) subscription/upfront fee for broker/dealing financial products. Through offering financial products, Privé is able to capture higher margin fees (e.g., execution fees, distribution fees, advisory fees) from regulated accounts and AUM-based fees for vFunds and Model Portfolios. Privé also generates subscription or upfront fees by providing technology products to corporates and institutions (e.g. commercial banks, IFAs/RIAs, EAMs, Private Banks). The high barrier to entry of our clients enables a high percentage of our fees to be recurring.

Business model

Privé focuses its efforts on the B2B business through introductions, corporate events and programmes. Privé’s value proposal is a comprehensive, scalable and modular platform for digitizing wealth management, serving as “wealth management in a box”.

Money will be spent on

The contemporary fintech industry is burgeoning, with startups building newer technologies to remain competitive within the market. In light of this dynamic and given Privé’s current growth stage, it is imperative for the company to constantly develop pioneering wealth management solutions, penetrate further into existing market segments and expand into newer ones.

The future of the wealth tech industry lies in shifting from providing software-as-a-solution to offering data-as-a-solution to users, ie, enabling advisors to leverage the plethora of customer data to enable deeper insights into the customer for delivering them highly personalized products. The investment shall primarily be utilized in enhancing the technology underlying the modules in our Bank-in-a-Box solution to ensure that the future solutions are able to gather more massive amounts of customer intelligence (eg: intrinsic motivation, personality & behaviour) from several data sources and utilize such collated insights to provide bespoke solutions to the end-users.

In addition to upgrading our technology, Privé would also use the funding to expand into new geographies in APAC and Europe, which would result in infrastructure and labour costs. Through the collaboration with investors, we hope to not only utilise the monetary funds but also hope to leverage the relationship developed with the investor to build a brand identity in the new markets. These investors, through their network effects, can assist us in creating company awareness and reaching out to clients who can be potential business generating opportunities. At the same time, the ability to work alongside seasoned professionals, who have themselves engaged in the development and deployment of innovative solutions, with vast domain knowledge in the fields, will allow Privé to obtain constructive feedback on how to provide solutions to the market, allowing further permeation of sustainable investing in the financial industry.

As mentioned above, Privé hopes to leverage the investments received to build more robust and user needs driven solutions but at the same time build relationships which can be conducive to increasing its current market share and positioning.

Offer for investor

NA

Team or Management

Risks

Over the past decade, the wealth management space has witnessed a shift in the paradigm towards technology driven solutions. In an effort to offer products that are affordable, convenient and intuitive to use, companies are incorporating technology to improve the quality of their solutions. With baby boomers retiring and millennials becoming seekers of wealth management, it is more important than ever for Privé to build technology enabled solutions that ease and simplify the process of handling wealth for the new generation. Apart from the segment of direct users, it is also imperative to provide solutions to enterprise clients that can be seamlessly integrated into their platforms, without having to reinvent their existing infrastructure, which Privé hopes to accomplish through its modular structure as described above. Service providers require technology which can easily be integrated into their systems and helps them to automate manual processes, so that they can instead spend their time and effort engaging in more meaningful interactions with the clients.

In addition to the above, it is becoming increasingly important to know customer suitability and design bespoke solutions. The users of wealth management solutions favour solutions that take into consideration the customers’ motivations, prior experiences, demographics, interests etc, and companies which do not acclimate to this environment may risk their sustainability. In order to take a step in the right direction, Privé has launched its AI engine optimizer called AI GO which helps advisors generate personalized portfolios for the end clients by mapping the clients’ motivations and interests on a proprietary framework and then using “natural selection” to produce the optimal solution. In order to ensure that Privé maintains its pioneering position in the market, the company must continuously upgrade its technology to keep its pace with the market developments and provide highly personalized solutions. This will allow the company to give the end clients greater control over their portfolios and hence augment their desire to use Privé’s solutions.

Incubation/Acceleration programs accomplishment

Privé has rbeen accepted into various accelerator programs, including those led by Accenture and Citi.

Won the competition and other awards

APB Award for the Best IAM/MFO solution: The award was won for a platform that best facilitates information flows for IAMs and MFOs to view and consolidate end-client information with custodian banks.

HSBC Alibaba JUMPSTARTER 2020 Top Innovative Startup Award

HSBC Alibaba JUMPSTARTER 2020 Audience Favorite Startup Award

IDC - 5 Fastest Growing Fintechs in Hong Kong - 3rd

ET Net - Outstanding Intelligent Asset Management Solution

Invention/Patent

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
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