Robo Advisors investment theory and market opportunity research in Europe based on a lean startup approach: The case of Swanest

Our world is constantly evolving, it’s an irrefutable fact ; which, on one side, can create threats on existing businesses, but, on the other side, can create opportunities for the people who are ready to challenge the statuts quo. Technology is changing our world since the very first printer to the industrial revolution, and the late 90’s with the world wide web. Today we are at the beginning of a new exciting area/revolution thanks to the Artificial Intelligence. The financial sector was always a spared sector from this technological evolution as its entry barrier and regulation slowed it down ; but some signs are appearing nowadays (as the recent important fintech IPOs such as Square and Lending Club) and they show that this time is over. In this thesis we will concentrate ourselves on a particular segment of this financial sector, which seems to get in its revolution now and will create opportunity for young entrepreneurs ; the wealth management industry. This paper describes the elaboration of a startup in the robo-advisor industry, this startup is an online automated personal investment assistant called Swanest. This thesis differs from others as it has been written by one of the startup founders, and follows the real progression of this ongoing venture. Never before was that kind of company described in depths in a thesis ; so close to the practical reality and academic concepts at the same time. Indeed, the main themes of this paper are the financial theory behind the algorithms used by the robe-advisors ; the business plan that was developed to make that idea a reality following a Lean Startup approach and finally the communication strategy to have with Venture Capitalists as funding is a crucial step for a startup. Those parts follow the theory of brillant minds who are currently seen as references in term of startup development. This thesis is the testimony of a new era for the wealth management industry.