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As Robo-Advisors Grow in Popularity, Can they Offer Sound Advice on Investments that Tug at the Heart? New investors are continually entering the market thanks to rational robot advisors, who now manage billions of Danish kroner for thousands of customers. Yet, the combination of data-driven algorithms, investment yield, and sustainable development goals are presenting an increased need for a balancing act. By: Sebastian Kjær
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ithin 30 minutes, you can sign up for an investment account, gauge your attitude towards risk, and create a broad portfolio, thanks to the help of a trusty robo-advisor. While there is nothing novel about investment advice per se, receiving it through an app and from a robot can be rather off-putting. Despite this, there are increasing numbers of algorithmic investors setting up accounts and engaging in the market with confidence. This is due, at least in part, to the efforts of the fintech company Nord Investments, Denmark’s second-largest robo-advising firm. With its portfolio of 2000 customers, the company is currently managing half a billion worth of Danish kroner. According to Anders Hartmann, Nord Investments' founder and chief executive officer: “We’re on a mission to give everyone access to an easy and intelligent investment solution at a low cost. Our advisory algorithm provides investment proposals that are 100% data-driven and rational in terms of risk and return. There are no subjective attitudes towards shares, industries, or countries.”
Democratising financial markets Most solo Danish investors hold two or three stocks, which are primarily Danish. With Nord Investments' solutions, they could get a broader portfolio and minimise their overall risk. Pointing to the app’s virtues, Hartmann suggests: “There’s an element of democratisation in it. Yes, we require a minimum deposit, but the way we invest is the way many of those who are wealthy have done for years, because they have been able to afford the correct, neutral advice. We’ve made it available for 30,000 Danish kroner.” In other words, Nord targets those investors who have come to realise that they cannot beat the market, or who are tired of the high costs associated with traditional wealth management.
Anders Hartmann Founder and CEO at Nord Investments
Anders Hartmann Founder and CEO at Nord Investments
