NRI Launches NAVIFACE to Support Proposals of Financial Product Portfolios
February 21, 2008
Nomura Research Institute, Ltd.
Nomura Research Institute, Ltd. (NRI: Tokyo, Japan; Akihisa Fujinuma, President, CEO & COO) will start offering NAVIFACE in April 2008 to support the retail business of financial institutions. Specifically, this solution supports sales activities of proposing portfolios for individual investors.
In an effort to encourage individuals to efficiently manage their assets by shifting focus from savings to investment, financial institutions have quickly been expanding their retail business to manage the financial assets of individuals. In response to these moves, their customers (individual investors) have been paying increased attention to asset management in the form of portfolios where multiple financial products are combined, thereby enabling dispersion of risk. In formulating marketing strategies, this trend has made it important for financial institutions to propose portfolios that fully consider the investment experience and intentions of each customer and to provide appropriate follow-up services after the start of asset management.
To provide solutions for these needs, NRI has developed NAVIFACE based on our extensive consulting expertise in pension management and asset management for institutional investors as well as our achievements in introducing a number of systems for wrap account services. NAVIFACE will enable financial institutions to provide integrated services – from identifying customer needs, proposing an optimal portfolio for each customer to providing follow-up services after the start of asset management. The reliability ensured through such integrated services will improve customer satisfaction.
In the future, we plan to provide functions to ensure compliance with the Financial Products and Exchange Law (e.g., proposal history management, approval management, user restrictions and log management), functions to support sales-related statistical calculations and marketing activities and tools for interactive communication with customers via the Internet. In addition to the expansion of functions, we also plan to establish linkage with other NRI solutions such as BESTWAY (account management system for over-the-counter sale of investment trusts), STAR-IV (comprehensive back-office system for retail securities companies), ListFlow and PLEIADES/WRAP (supporting wrap business) as well as with outside systems such as data linkage with CRM systems.
[For general inquiries, please contact:]
Kiichiro Yokoyama / Yukako Seto
Corporate Communications Department
Nomura Research Institute, Ltd.
Overview of NAVIFACE
• NAVIFACE’s portfolio proposal processes and outline of functions offered
• Outline of functions offered at each process of portfolio proposal
< Becoming aware, identification >
NAVIFACE enables the simulation of future cash flow simply by using statistical values and answers to simple questions asked of customers (individual investors) at the bank office or during sales visits. During this process, the customer can become “aware of” the need for asset management, and the financial institution can share “goals and problems” with the customer.
< Risk level measurement >
NAVIFACE examines the suitability of financial products and measures the risk level (diagnosis of risk tolerance) based on the answers to questions asked of the customer about investment experience, investment propensity and product preference. The use of system tools enables presentation of a proposal that meets the suitability and risk tolerance of the customer.
< Presentation of asset allocation >
NAVIFACE can present optimal asset allocation based on the risk level and propensities specific to each customer. The system provides past data, future projections, etc. of asset allocation and compares the proposed portfolio with overall assets owned by the customer, thereby helping the sales representative provide persuasive explanations concerning the proposal.
< Product selection, preparation of proposal >
NAVIFACE enables optimal asset allocation by selecting a combination of the most suitable financial products (investment trusts, etc.), and permits the financial institution to create its own proposal based on the results of simulation. The system enables the drawing up of a proposed portfolio that meets customer needs in the shortest time possible.
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