Avaloq has joined forces with IBO, a firm that seeks, its managers say, to provide unbiased data on how well or not portfolios perform and whether they adhere to clients' risk profiles.

Banking and wealth management software and technology firm Avaloq has partnered with with IBO, another Switzerland-headquartered firm, to rank how well portfolios perform.

IBO, aka Investment By Objectives, has built the IBO Performance Watcher offering, through which banks and their clients can compare portfolios one-to-one, and understand how their portfolio performs in comparison to portfolios of other wealth managers. (This publication interviewed IBO about its business model, which the firm claims does not suffer from pressure to produce flattering reports and is free from conflicts of interest.)

“With consumers being finely attuned to issues around the financial industry, banks are looking for ways to demonstrate commitment to their clients - with the right products, by portraying professionalism, and especially through increased transparency,” Francisco Fernandez, Avaloq’s Group chief executive, said.

There is a trend, Avaloq said, of allowing users to compare portfolio performance against similar clients with identical risk profiles to facilitate improved risk monitoring and greater insight into portfolio performance.

IBO's software allows clients and advisors to assess portfolio returns and takes a client’s risk appetite into account.

"Due to various negative events, trust - the ultimate glue of successful business relationships - in the financial industry began to crumble. Crucially, providing the ability to assess the performance and risk of portfolios not only benefits the bank customer, but also the bank itself,” Marc Lussy, head of business development and Digital Marketing at IBO, said.