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robot investment service

Danske Bank has attracted 11,500 customers to its robot investment service

For six month the Danish Danske Bank has attracted 11,500 customers to its robot investment service. The Denmark’s largest financial institution hopes the project will help expanding its asset management operations.

The robot is called June. It targets unprofessional clients and small businesses that do not usually have the resources to figure out what to do with their extra cash. And given on the fact that Denmark holds the world record at negative interest rates – below zero since 2012, longer than any other place on Earth, the bank says it makes sense to redirect deposits that now do not earn anything.

The customers encountering June for the first time are asked how much they want to invest (the limit is 1 million kroner, or about $160,000 per person). They then need to choose a risk category. If they’re not sure, Danske provides a short test. That’s followed by questions on a preferred investing time horizon, as well as income, spending, assets and liabilities. Then June provides a recommendation on which of five funds to invest in, based on an algorithm. The whole process takes about 10 minutes.

Customers are offered access to stock exchanges with different stock and bond distributions and different geographic points, depending on their risk appetite. The robot investment service is highly attractive for the customer obviously, providing relatively good returns.

“The idea with June is basically to help democratize investment”, said the Danske’s product chief for June in Copenhagen, Jakob Beck Thomsen.

According to the Danish company, interest in the robot is great. At the same time, the management claims that June is not a labor killer, but on the contrary, extends the existing business.

About Angelina Nieves

Angelina Nieves is 25-year-old girl from Tula, Mississippi, USA. She was appointed as finance analyst and writer at Finance Apprise Journal, responsible for South and Central American economy, as well as African region.

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