Kidbrooke’s Transformative Technologies: How the Swedish FinTech’s Solutions are Helping Shape Financial Planning

Kidbrooke®, is a Swedish software technology trailblazer helping to transform the finance and insurance industry with its flagship investment and wealth analytics platform ‘KidbrookeONE’, designed to improve customer and adviser experiences as well as increase the efficiency of investment and wealth operations. Spearheaded by the firm’s creator and CEO, Fredrik Daveus, Kidbrooke® is intent on elevating financial planning and the curation of advice through seamless integration of data and the holistic application of customer information. Essentially, the Kidbrooke® solutions represent a new era of financial planning decision support, optimising customer engagement and paving the way for more informed and confident investor activity and decision-making. Fredrik spoke to Hubbis recently to explain that, from addressing the challenges of digital self-service and ESG compliance to enhancing the advisor-client relationship, Kidbrooke's innovations are helping investment and savings solutions providers to set new standards for financial planning and advice in wealth management and financial advisory services.

Key Offerings

Kidbrooke recently announced the transition from OutRank, the financial simulation engine, to KidbrookeONE, their unified investment and wealth analytics platform. This strategic shift addresses critical industry trends, including the demand for efficient data management processes, the need for more personalised digital experiences in wealth management and improved ALM (Asset and Liability Management) tools in investment and asset management. KidbrookeONE focuses on providing financial decision support through predictive modelling and simulations. It excels in integrating across various use cases and distribution channels, enabling seamless analysis of investments, pensions, mortgages, and insurance, all through an API-only architecture. This specialisation allows institutions to simulate future financial impacts of current decisions, offering a targeted approach to financial planning and advice.

The comprehensive data and analytics platform serves as a holistic solution for financial data and analytics needs including extensive data management functionalities, portfolio analysis, and customer profiling. It is designed to automate financial advice, guidance and planning across a wider range of financial products, integrating ESG and sustainability trends into financial planning and investment analysis. KidbrookeONE therefore acts as a centralised hub for aggregating, enriching, and transforming financial data, supporting a broader set of financial institutions in creating optimal portfolios and navigating compliance with ease.

Broad Client Base

Fredrik mines down further into KidbrookeONE, noting that it serves a wide range of financial institutions, from banks and insurance platforms to wealth managers and independent financial advisors, providing critical decision support for both advisors and their clients. "KidbrookeONE is a natural home for all of your financial data and analytics needs," he states, emphasising its versatility in handling instrument and fund data, financial planning, and portfolio construction, among other features.

KidbrookeONE enables a high degree of automation and self-service for financial institutions, aiming to enhance customer experiences while maintaining cost-efficiency. "For our larger clients like banks and insurance companies, we facilitate fully automated financial advice, guidance and planning, ranging from pension advice to investment strategies," the spokesperson adds, highlighting the platform's capacity to empower advisors with the tools they need for efficient service delivery. This automation extends to wealth managers and advisors of high-net-worth individuals, enhancing their ability to provide personalized advice and manage client portfolios effectively.

Key Differentiation

KidbrookeONE is designed to bring unparalleled efficiency and consistency to investment and wealth managers’ operations. This is achieved through a unified approach between data and analytics that integrates financial planning and asset management aspects into a coherent system. This ensures a uniform quality and accuracy of advice or decision support, whether delivered by humans or a digital platform. Its core features include robust performance, forward-looking and retrospective wealth analytics, an architecture which does not require the storage of end-customer data, and an API-first design for seamless integration. It is auditable and modular, focusing on business and customer needs.

Fredrik reports that Kidbrooke® is making waves across the spectrum of financial services providers, including insurance companies, pension providers, banks, wealth managers, and IFAs.

Solutions that Enhance Efficiency & Outcomes

“In an industry grappling with the high costs of providing comprehensive financial advice and navigating stringent regulatory landscapes, we offer solutions that really help make the process of engaging with customers, especially in long-term financial planning like retirement savings, much easier and more enjoyable for all,” Fredrik says.

“The technology aims to captivate interest through insightful decision support, with the capability to simulate future financial impacts based on current decisions, thereby offering tangible, actionable recommendations across a range of financial scenarios.”

KidbrookeONE prioritizes what customers value most: consistent information and assumptions across all channels and customer experiences, fast and scalable performance for fully interactive experiences, reduced time-to-market for new initiatives, reduced model risk, and streamlined implementation.

Working with the Blue Chips

A testament to Kidbrooke®'s impact is its collaboration with Skandia Life, Sweden's leading life insurance provider. Fredrik explains that through their solutions, Skandia Life has seen a notable improvement in advisor efficiency and customer engagement, with customers expressing a willingness to share more data, drawn by the value the tools offer. "Customers can seamlessly move between the channels, get guidance, get advice," Fredrik notes, underscoring the heightened engagement and conversion rates resulting from this comprehensive digital support.

Market Demand

He points to the increasing demand for digital solutions in occupational pensions and retirement planning the world over as costs rise and there is a greater thrust towards self-sufficiency in retirement.

“In an industry grappling with the high costs of providing comprehensive financial advice and navigating stringent regulatory landscapes, we offer solutions that really help make the process of engaging with customers, especially in long-term financial planning like retirement savings, much easier and more enjoyable for all,” Fredrik says.
 

“Our work with Skandia Life serves as a case study in how digital solutions can revolutionise financial advice, making a compelling case for the adoption and optimization of technology in enhancing the wealth management experience. We are oiling the wheels of a significant shift towards more informed, confident, and engaged investors.”

Evolving Needs & Expectations

Fredrik sets the discussion within the context of the evolving landscape of private wealth management. He says there has been a strategic shift towards integrating physical and digital delivery channels, aiming to provide a seamless and consistent client experience across both platforms. "People are really trying to use self-service as a way to accelerate the physical or human advisor conversion," Fredrik notes, stressing the importance of consistency and the pivotal role Kidbrooke® plays in addressing these integration challenges.

Another critical trend highlighted by Fredrik revolves around the increasing emphasis on ESG and sustainability trends, especially with the European Union advancing rapidly with new regulations. This shift has introduced complex data management challenges, particularly in accurately displaying fund information due to the multifaceted nature of ESG data sources.

"Things which used to be very simple, like displaying fund information, suddenly become much more complicated," Fredrik explains. “The intricacies involved in combining ESG data, ensuring compliance and conducting proper suitability analysis amidst evolving regulatory landscapes represent a major challenge.”

To address these challenges, he says that KidbrookeONE incorporates added functionality tailored to the data analytics demands of the ESG-focused investment world. This enhancement positions Kidbrooke® as a central hub for critical financial and ESG data, facilitating the aggregation, transformation, and enrichment of this data, as well as making its delivery as simple and effective as possible via API.

Key Priorities

As Kidbrooke® continues to evolve and expand its offerings, the company has set forth key priorities to guide its journey in the financial technology landscape.

Since going live in the market in 2020, Kidbrooke®'s product, initially a niche solution for simulation and prediction in capital modelling, has developed into the more comprehensive KidbrookeONE platform, attracting a significantly wider range of financial institutions. "It's really about accelerating go-to-market and delivering that kind of functionality into the marketplace to the customers out there, which is a key priority for us," Fredrik reports.

In terms of geographical expansion, Kidbrooke® has identified two main priorities. Firstly, the company aims to consolidate and expand its footprint in the Nordics. The region remains a strategic focus, "We can target a broader set of institutions of different sizes as well, so we can kind of build out our footprint here," the spokesperson notes, highlighting the potential for growth in the local market.

Secondly, Kidbrooke® views the Middle East, particularly the UAE where their clients are based, as a highly promising market, driven by macro trends such as expatriates choosing to retire in the region and governmental efforts to establish occupational pension solutions. "The Middle East is a super interesting region...it's quite exciting to be part of building an entirely new infrastructure around these kinds of financial services," he says, signalling Kidbrooke's intention to be at the forefront of developing financial services infrastructure in the region.

Besides focusing on the Nordics and the Middle East, Kidbrooke® also continues to target key jurisdictions in the rest of Europe, with the UK being a focal point. This strategic geographical expansion, combined with the broadening of its platform's capabilities, positions Kidbrooke® to play a pivotal role in reshaping the financial services landscape, offering innovative solutions that meet the evolving needs of institutions and their clients across diverse regions.

In Tune with Evolving Trends

Fredrik rounds off the conversation by focusing on the nuances of Kidbrooke®’s proposition. He says the firm’s philosophy towards providing solutions is anchored in flexibility and efficiency, aiming to empower their clients to deliver exceptional bespoke customer experiences. "We really don't want to be prescriptive. We're here to help industrialise, automate, to support efficiency, just as we have done with Skandia Life, Max Matthiessen, and Hayah Insurance in the UAE, crafting services that resonate with their distinct brand and operational approach.”

This adaptability is a cornerstone of Kidbrooke®'s offering, ensuring that its platform remains configurable across various dimensions to meet the specific needs of each client. “We've taken great care to make our platform solution configurable,” Fredrik states. “In that way, we can always help clients provide the services in their unique way.”

A Catalyst for Positive Change

His final word is that Kidbrooke® distinguishes itself acting as a catalyst for change in the financial and wealth services industry. “We are fostering a more dynamic financial advisory process but also championing the convergence of technology and personalisation to create elevated, enhanced customer experiences and outcomes.”

Getting Personal with Fredrik

Fredrik, founder of Swedish FinTech Kidbrooke, shares a glimpse into his life, weaving together his professional journey, personal interests, and culinary preferences, offering a multifaceted view of the individual steering Kidbrooke's innovative course.

Born in the serene municipality of Österåker, just north of Stockholm, Fredrik's educational path led him from local schooling to prestigious degrees in both engineering and finance from Stockholm's leading universities. This blend of technical and financial expertise laid the groundwork for an interesting career, marked by early leadership in risk management and a key stint in London's investment banking sector, culminating in the founding of Kidbrooke in 2011.

Beyond the boardroom, Fredrik enjoys a rewarding family life with his wife and two children, a son, 15, and a daughter nearing 13.

His leisure time is a tapestry of social gatherings, culinary explorations, and physical activities. Contrary to winter landscapes of Swedish more iconic pastimes of ice skating, skiing and sledging, Fredrik's preference leans towards the warmth of the sauna over ice baths, a luxury afforded by his custom-built home. His active lifestyle is complemented by tennis, golf, and routine gym sessions, embodying a balance between professional rigour and personal well-being.

In golfing season, Fredrik is often found at the Österåker Golf Course, a top-tier facility within a short drive from their home.

As to culinary adventures, Fredrik and his circle often indulge in home-cooked meals, veering towards French-inspired dishes or Asian cuisine, turning what he refers to as a scarcity of local high-calibre restaurants into an opportunity for intimate gatherings and gastronomic experiments.