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Discover Germany  |  Special Theme  |  Fintech

Digital banking

– Made in Germany

Ginmon team portrait.

Dating back to Roman times, Frankfurt has always been a centre for trade. With banking pioneers such as Johann Philipp Bethmann, Benjamin Metzler and Mayer Amschel Rothschild, Frankfurt became one of the leading banking destinations in Europe in the 18th century. Today, Frankfurt is not only the location of the stock exchange, many regulatory authorities and the European Central Bank (ECB), but also home to many financial institutions from all over the world. With their skyscrapers, they form the cityscape of ‘Bankfurt’. TEXT & PHOTOS: GINMON

Traditional financial services are being challenged by new-age Fintechs. They are the result of the ongoing digitalisation in the industry. Within, no other has caused more disruption than roboadvisors. They offer new solutions for private investors to reach their financial goals and are an alternative for private wealth management. Ginmon, a Frankfurt-based robo-advisor, was founded in 2014 by Lars Reiner, a former Deutsche Bank manager. Besides his interest in finance he always had a passion for technology. In his free time, he started to develop an algorithm that reflected the most-renowned theories in modern portfolio management. US portfolio sci-

entist Prof. Eugene Fama theory, called the three-factor model, was awarded with a Nobel prize. Instead of picking up single stocks or bonds for the portfolio, the mathematical algorithm is designed to diversify the portfolio over the worldwide capital market with ETFs. By adding smaller companies and those with a solid rating, a higher yield can be achieved. With an anticyclical investment approach, the portfolios are regularly adjusted to daily market movements. Ginmon therefore offers a service that could previously only be provided to very wealthy and institutional investors. Robo-advisors make capital market investments reliable and less stressful for

the investor. To make sure that the portfolios match the individual demands, customers can identify the optimal allocation with the help of an online questionnaire. Due to the high degree of automation, the investors gain a reliable portfolio management at very low costs. “We are using the most advanced scientific knowledge to improve the investment process,” explains Lars Reiner.“That is why we see Ginmon in the tradition of the early financial pioneers of Frankfurt, who already worked on innovations some 200 years ago.” www.ginmon.de

Lars Reiner.

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