News Robo-Advisor can not replace banking advice yet

News Robo-Advisor can not replace banking advice yet News always well informed

Thursday, 24.11.16 , written by Cora Christine Döhn The financial world is becoming increasingly complex, but the investment opportunities always easier. At least the numerous FinTechs with their offers make this appearance to the investment. Tanja Beller from the Association of German Banks explains in an interview why savers should not simply hand over their money to someone else, but  

Tanja Beller im Interview über Finanzkompetenz und Robo-Advisor

Tanja Beller of the Federal Association of German Banks

With so many ways in which consumers can make more out of their money, many of them lose track. Many people are overwhelmed with the question, which investment makes sense at what time . So-called Robo-Advisor promise savers for some time to take this decision partially off. They invest the money of the investor on the basis of a previously determined algorithm, which fits the wishes of the saver. However, Tanja Beller of the Association of German Banks warns against relying blindly on this comfort in investing. Rather, the Germans should understand exactly how they invest their money and what happens with it .

What is your opinion about the financial literacy of the Germans?

Tanja Beller: Unfortunately not so good. According to our surveys, which we regularly commission, Germans have significant gaps in their knowledge . However, a sound economic and financial education is the prerequisite for being able to make right or wrong monetary and investment decisions. According to our “Financial Planning Index”, two-thirds of Germans – that is 64 percent – think that they are well-versed in monetary and financial matters. But at the same time, every second person has to admit to having “no idea” about what happens on the stock market .

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Which form of investment would you recommend to someone who currently has 10,000 euros available?

Tanja Beller: Unfortunately, there is no universally valid answer. Because the decision depends on the individual situation :

  • Which investment forms does the investor already have? (For example, stocks, bonds, real estate)
  • How long can the money be invested?
  • With what goal? For example, for a specific purpose, such as the purchase of a car or the repayment of a loan, or long-term for asset accumulation or retirement.

In addition, of course, one’s own risk appetite is crucial, which is why banks consult investment advisors about their risk profile.

How should retail investors today best choose the right investment?

Tanja Beller: You should use and compare many sources of information. In addition, you should take the time to be clear about your own investment goals and personal finances . What sums do investors dispose of once or on a regular basis? Over what period of time should the asset investment extend? Do savers want to invest in the short, medium or long term? How important is it that savers can access their invested capital at any time ? How big is the risk appetite?

Basically, you should only buy those financial products whose operation and risks you understand . As a rule of thumb: Spend savings and wealth wide. Never put everything on one card unilaterally , even if an offer seems so attractive, and cover a sufficient amount for unforeseen expenses quickly available – for example, on a money market account.

What savings tips do you have for employees who have around 200 euros per month and want to invest the money profitably?

Tanja Beller: You can not pass shares for a chance at profit or return. For investors who can regularly save a smaller amount, offer fund savings plans. For a broad diversification of risk funds with high profit companies from different sectors and regions are a good choice . At present, index funds that replicate stock market indices, so-called ETFs, are often recommended as being particularly cost-effective. They depict an index such as the German stock index DAX or the European benchmark index EuroStoxx. But also managed funds are eligible. As an investor you are spoiled for choice, as the selection is very large. For managed funds, account should be taken of the regular costs .

What advantages and disadvantages do you see in classic savings options such as call money and time deposit accounts?

Tanja Beller: At the moment there is a big disadvantage: savers get only minimal or no interest. It was a good idea for many years to park money that you did not want to invest in the long term on daily or fixed-term accounts . Especially the call money account offers as a plus the availability at all times. Both offers are considered very safe if the investor has previously checked the deposit guarantee.

For small investors meanwhile numerous alternative forms of investment are offered. How suitable in your eyes, for example, financial investments offered by FinTechs?

Tanja Beller: The very different offers can not be assessed flat rate. And also “the retail investor” does not exist. For example, the so-called Robo-Advice also has different characteristics, which are aimed at different types of investors : from online tools that support self- decision makers in the selection of suitable products, to digital asset management, in which the customer depot is automatically assembled and updated becomes. What characterizes the Robo-Advice is that it is always an algorithm that identifies the right products for the customer. A personal discussion with an investment advisor, who asks specific questions about the investor’s personal situation, can certainly not (yet) replace this .

Deposit insurance: Most are 100,000 euros insured by banks

The deposit insurance is a guarantee of the bank to its customers. She assures that even in the event of bankruptcy, the bank will recover its money up to a maximum of 100,000 euros.

In your opinion, does the investment world become ever simpler or less transparent through the innovations of FinTechs?

Tanja Beller: FinTechs aim to develop applications that are as simple and comfortable as possible. And banks are also working with FinTechs or have set up their own companies to develop new products. Digitalization is changing investor behavior and customers’ demands for the convenience and clarity of online services are also increasing. Small investors can certainly benefit from this trend.

At the same time, however, there is an ever-increasing supply on the financial services market, making it no easier for the consumer to keep track of and compare. Ultimately, it is up to everyone to take action and make the right decision: Do I want to get advice from my bank, can I inform myself and make the investment decision via online banking, or do I use new services like Robo-Advice? There is no such thing as a blanket, all-inclusive answer to these questions.

  • Thank you for the interview, Ms. Beller.
  • Here are tips and more information about the investment. >
  • Cora Christine Döhn

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The Bank of Piraeus will forgive its clients the debts under € 20,000 to alleviate the crisis

The Bank of Piraeus will forgive its clients the debts under € 20,000 to alleviate the crisis

  • It is the first Greek financial institution to take a step to alleviate the situation of the clients under the government’s humanitarian aid program.
  • All of these people will also be frozen their mortgage loans and will be exempted from paying interest during the period of validity of the law.
  • The entity said that this measure aims to show its commitment to meet the current needs of the economy.
  • All those who do not receive aid from other European or regional initiatives have the right to benefit from this program.

A man places Greek flags in a pavilion. Yannis Kolesidis / EFE

The Bank of Piraeus was the first Greek financial institution on Thursday to take a step to alleviate the situation of the most needy customers, by canceling the debts of less than 20,000 euros of all people who have taken refuge in the government’s humanitarian aid program .

In a statement, the bank said it eliminates 100% of the total debt of up to 20,000 euros for all consumer loans and credit cards.
This provision is open to all those who have accepted the aforementioned humanitarian aid program approved by the Government of Alexis Tsipras for the most needy.

The bank reported that all of these people will also be frozen their mortgage loans and will be exempted from paying interest during the term of this law, initially scheduled for one year.


The entity said that this measure aims to show its commitment to meet the current needs of the economy and society, and help a new start.

Customers who can not benefit from the law will be offered solutions

For debtors who can not benefit from the provisions of that law, but have outstanding payments with the bank, the lender will propose solutions to restructure their debt .

The cancellation will affect thousands of customers

The Bank of Piraeus immediately posted on its website the conditions that accompany this offer and noted that requests may be made in any of the 803 branches as of May 21 .

Bank sources cited by local media pointed out that the volume that can be condoned amounts to several tens of millions of euros and affects several thousand customers .

At the same time, this measure opens the way for other banks to offer similar programs.

The Greek government anti-poverty program is intended for a total of 153,000 families who can apply for rent, electricity and food aid . According to Social Security data, only on the first day of the request for humanitarian aid, on Monday, 8,500 requests were received.

Only for those who receive other aid

All those who do not receive aid from other European or regional initiatives are entitled to this program. Specifically, it is expected that 30,000 people will be able to benefit from housing assistance, who will receive between 70 and 220 euros per month . Applicants can also request 300 kilowatts of free electricity per month and a bank card that can be used only for the purchase of food and that the Government will recharge at the beginning of each month.

For housing assistance, 30,000 people will be able to benefit, who will receive between 70 and 220 euros per month.

The initiative can be chosen by those who last year declared to the Treasury an annual income of less than 2,400 euros for a single-person household and 6,000 euros per year for a family with four children . In the case of rental assistance, the value of real estate property should not exceed 90,000 euros if it is a house of one person, or 200,000 euros in the case of a family.

A small important step, not definitive

The deputy minister of Social Solidarity, Theanó Fotíu, recently admitted that the law approved by the Greek government ” does not solve the humanitarian crisis” , but added that it is a ” small important step ” and that families with children will have priority.

According to statistics agency Elstat, in mid-2014 23.1% of the Greek population lived below the poverty line and there was 28.8% of child poverty. In the six years of crisis, income in Greece has fallen by an average of 30% , unemployment has skyrocketed from 9% to 26%, three million people have run out of health insurance and gross domestic product has fallen by 25%. % .

Investing at low interest rates: Which forms of savings are suitable

Stuttgart – The interest rates are low, the fear big: savers are currently not easy to find the right investment. Nevertheless, it is possible to achieve a return that is above the inflation rate. Investors only have to distribute their money properly.


Picture: Money Image: © matttilda / / Text: dpa / tmn

Euro debt crisis, low interest rates and high inflation – times are tough for investors. Those who want to invest their money safely, but at the same time want to avoid a devaluation of money, must distribute their assets. “You should invest in several asset classes,” advises Petra Locher of the consumer center Baden-Württemberg in Stuttgart. That was an effective protection against high losses. But which plant is suitable? An overview:

call money

“Savings accounts are a good way to park your cash,” says Locher. Because here customers could have the credit at any time. Especially direct banks often offer good interest rates that are above the inflation rate. Customers should make sure that the account opening is not conditional and the assets are protected by the deposit insurance.

Fixed deposit / savings bonds

Who can spare his money longer, should invest part of it in time deposits or savings bonds. “There are much higher interest rates than overnight money,” says Locher. The advantage: If interest rates continue to fall, customers would receive the agreed interest over the term. But the money should not be invested for too long. “One to three years are enough.” Because for longer terms they receive hardly better interest rates.

Stocks / Funds

Equities or equity funds offer higher returns, but also carry a higher risk. “There must already be a certain willingness to take risks,” says Locher. With fluctuating prices, investors would have to be able to live. Nevertheless, those who are long-term oriented should invest part of their money in a broadly diversified equity fund. Because in the long run, higher returns could be achieved on the international stock markets than with other reputable investments.

precious metals

In times of crisis, many investors repeatedly rely on precious metals such as gold. “The return on gold, however, is only generated by the price,” Locher points out. In other words, if the price rises, the investor makes a profit. If the price falls, he loses. However, there is nothing wrong with investing part of a larger fortune in gold.


Low interest rates are good for homebuyers. “In a self-used property, it is rarely on the return,” Locher explains. Therefore, a corresponding investment should be made more dependent on life planning than the prospect of profits. Those who do not want to buy their own house can put part of their money into open-ended real estate funds. “However, there is also a fluctuation risk.”


For bonds investors should pay attention to the valuation. “One should only buy bonds from debtors with the highest rating,” recommends Locher. This is the case for German government bonds, but the yield is low. For retail investors, therefore, bond funds are an alternative, because they invest in many different papers and therefore spread the risk.


Auto Title Loans – What To Take Into Consideration And To Be Able To Watch Out For

Car title loans are ideal solution for those who are lacking financial back up in use of need. It could be only option for those who have a messed up credit history. However, these loans have fair share of negative traits too, large part rate, rollover of loan are a couple of them. It is a good idea to approach title knowing both positive and negative aspects of the.

A payday loan is not only secured advance. There is not even attempt to take in case the money is not repaid. What’s going to happen tends to be that the loan will be sold off to a collections agency as well as the debt seem reported towards credit office. Another seven year negative mark keeping your own score deficient.


There usually aren’t any credit checks involved, each and every you have less than stellar credit, it shouldn’t be a trouble for you where auto title loans are concerned. Needless to say, truly isn’t any hassle involved, and this can be a quality thing if you really have to have the funds for an emergency.

Your car may be repossessed- This kind of is about badly as it gets. If you’re late or default about your loan payments, the lender has the right to repossess your own vehicle (remember when you gave them the title at your loan signing?). In most instances they calls for the car to an auction, sell it, and recoup their costs. This will happen quickly as they going to need to hold onto the motor. There is no turning back when this requires. On top of losing your automobile, the lending company may file a lawsuit if you will discover a difference involving amount you borrowed the they profited from car at the auction.


Borrowers may find this loan convenient, currently available absolutely no their credit ranking. This loan is usually preferred for meeting near future credit needs which can’t availed from banks yet another financial organisations. And as soon as the borrower accumulates the fund, he can repay the loan to regain the title of auto. Besides if the borrower repays the loan quickly while has to pay less interest which will also also take care of the final amount low.

While is actually an risk involved with taking a car title loan, it frequently better complete so than forgo the game. Chances are you simply are in serious necessity of money if you are considering such mortgage finance in initial place, as well as probably a good important bill to compensate.

To conclude, payday loans are an exceptional alternative preference want cash urgently an individual know in order to can repay the full amount after getting your wages.