Transforming a Sophisticated Algorithm into an Extensible and Secure Investment Portfolio Analytics Platform
Albin Kistler is an asset management company for private and institutional clients. With more than 8 billion assets under management, the company stands out as a prominent wealth manager in Switzerland. What differentiates Albin Kistler is their custom-made analysis method to assess stocks and bonds, making them one of the country’s top research houses.
Their distinctive method is a result of the collaborative efforts of their internal experts, who have dedicated years to crafting and refining this methodology.
Recognizing the need for a robust and scalable infrastructure to support their sophisticated analytical engine, Albin Kistler decided to build a modern investment analysis platform.
Read on to discover how Modeso helped Albin Kistler enhance data accessibility, streamline analysis processes, and ensure the seamless integration of the new portfolio analytics platform into their day-to-day operations.
“Client Testimonial"
Name, Position, Company
The proprietary algorithm for investment analysis
Albin Kistler’s approach to investment analysis positions them as a trusted partner in the financial landscape. They offer clients a blend of deep industry insight, precise mathematical analysis, and a well-established history of delivering value over time.
Their analytical engine for assessing a company’s financial health incorporates both qualitative and quantitative inputs, creating a comprehensive evaluation process. Excel files capturing detailed financial metrics offer a historical perspective that extends over 20 to 25 years. The synergy of these two dimensions forms the foundation of a powerful analytical engine.
The intricate mathematical process not only standardizes the assessment but tailors it to specific industries, ensuring a customized evaluation that aligns with the nuances of each sector.
Revitalizing Albin Kistler’s investment algorithm to overcome legacy system challenges
The challenge Albin Kistler faced with their existing system revolved around the outdated infrastructure of their research database.
The first version of this database was developed about 15 years ago by a small team using Microsoft Access. Over the years, it had proven beneficial for the business, prompting Albin Kistler to invest in its improvement. Yet, the second iteration of the application exhibited sluggish performance and proved difficult to extend. The prolonged time to market posed challenges for the company, hindering its ability to implement new features and quickly experiment with ideas.
Given that the algorithm for investment analysis was at the heart of their business model, Albin Kistler needed to find a capable partner to address the shortcomings and modernize the system so it could meet the evolving needs of the company’s core product.
They approached Modeso to rebuild the application. The primary goal was to replicate the algorithm with necessary improvements while transforming the database into a modern web platform.
Modeso didn’t only re-implement the algorithm but also completely overhauled the technology stack, creating a more adaptable, high-performing, and easily extensible solution that aligned with Albin Kistler’s vision.
Read on to learn more about the challenges we’ve encountered along the way.
Navigating project complexity
Methodology shifts
We started the project with Alignment Workshops with Albin Kistler to understand their existing system and identify additional requirements for the new application. This initial phase facilitated the creation of a high-level milestone plan and laid the groundwork for more detailed requirements-gathering workshops.
Before starting an Agile development process, we recognized the need for a thorough analysis of the core algorithm, particularly concerning the enhancements to be integrated. To address this challenge, we augmented our team with additional resources, including a dedicated business analyst, to conduct in-depth discussions with subject matter experts.
We realized that working with a small, experienced user group who have been actively involved with the product for years, made an agile approach less effective. These users knew exactly what they wanted, and so we needed to implement the main functionality of the system first before the users could test the platform.
We used a waterfall model to implement the core algorithm and shifted back to a more flexible agile approach for the user interface and additional features. In this agile phase, we consistently created and integrated new chunks of functionality, gathered user feedback, and iteratively refined our work.
Understanding the algorithm
From the previous version of the application, we inherited comprehensive documentation outlining the algorithm. We rewrote the documentation in our own words to create a common understanding among all the stakeholders.
Our efforts to understand the mathematical methods employed in algorithm development allowed us to support the subject matter experts on the client side in enhancing the algorithm.
Integrations with third-party and internal systems
Several key integrations played a crucial role in enhancing the functionality and data richness of the system. Integrating external and internal software brought technical challenges due to their complex interfaces. We needed custom integrations to match the unique features of external financial systems and proprietary software. Here is a brief overview of the main challenges with these integrations and what we did to solve them.
SIX apiD financial
GOAL
Fetch real-time financial data, including stock quotes, bond prices, and currency exchange rates from SIX apiD, a prominent global financial information service company.
CHALLENGE
Understanding the extensive functionality of the sophisticated API, including navigating its licensing model for data retrieval from specific stock markets and timeframes.
SOLUTION
Carefully selected and implemented specific features of the SIX apiD interface, ensuring compliance with licensing agreements and optimizing data retrieval for our purposes.
PM1 portfolio management system
GOAL
Integrate data from Expersoft’s PM1 platform, (wealth and asset management software), providing information about customer ownership, stock values, and detailed bond information.
CHALLENGE
Custom integration with the PM1 system through a direct database export.
SOLUTION
Invested time in meticulous custom integration, decoding, and validating data from the third-party database to meet our application’s data quality standards.
Active Directory
GOAL
Use Albin Kistler’s Active Directory for authentication purposes and import user information, eliminating the need for manual user data entry.
CHALLENGE
Ensuring seamless integration with the Active Directory.
SOLUTION
Implemented a streamlined integration process, allowing for user authentication and automatic import of user information.
Private cloud integration
Albin Kistler employs a private cloud, using an infrastructure provided by an independent cloud service dedicated to the Swiss financial market. This provider customizes the environment to meet the specific requirements of banks and asset management companies, ensuring tailored and secure solutions.
Despite facing initial challenges in adapting to the CI/CD pipelines and infrastructure configuration of the private infrastructure hoster, which was a novel environment for our DevOps team, we effectively resolved these issues. Over time, the integration and infrastructure provisioning seamlessly aligned with our goals.
Implementing customer-facing reporting features
Collaborating with our in-house UI/UX designers, we aimed to implement a user-friendly interface that seamlessly integrated the complex functionality of the application. Here is a brief overview of our solutions:
GOAL
Provide a customizable overview of investment portfolios
Create a dashboard that highlights significant changes in data
Offer a detailed view of companies over the last 10 years, tailored to specific industries
Successfully transition reports from Excel to the web application
CHALLENGE
Accommodate diverse parameters and attributes for each object in tables with hundreds of columns
Identify and showcase alterations in stock prices or shifts in credit ratings for bonds
Integrate graphic visualizations and tables, providing insights into uploaded company data and calculations
Replicate the structure and complexity of Excel reports, ensuring responsiveness across various screen resolutions
SOLUTION
Implemented a sophisticated grid view allowing users to save filters and column preferences for customization
Developed a dashboard that allows for daily monitoring of crucial changes
Designed a comprehensive corporate report with interactive visual elements and compelling data representation
Adapted layout and interactive elements, addressing challenges in alignment for diverse screens and resolutions
User acceptance testing
Our development process wasn’t just about meeting technical goals; it was about making sure the solution fits what Albin Kistler needed.
Throughout development, we conducted user acceptance testing (UAT) to ensure that the developed features met our client’s expectations.
Here is how it worked. We first did some regression testing right after finishing a milestone to make sure everything worked well. Then, we got the client involved in UAT. We gave them release notes and testing instructions and asked them to try out the new features. This was our way to get valuable feedback and ensure everything was working like they expected. After the stakeholders shared their feedback, we fixed any issues they found and deployed the solution, ensuring its accessibility to users in their day-to-day tasks.
Data migration and launch
After a soft launch in mid-October 2023, Albin Kistler conducted final checks, and the next crucial step was planning the data migration from the old platform to the new one. This involved moving a substantial dataset. The challenge arose from changes in the input files. The new format differed greatly from that of the old application.
We worked out a way to upload the old files, and our system made sure everything was in order. This approach ensured not only the migration of data but also a significant improvement in data quality.
By the end of November, we went live, having successfully migrated everything to the new platform.
Building tomorrow with a new extensible platform
The Albin Kistler’s project’s success hinged on resolving two major issues:
- The previous inability to add features efficiently.
- The complexity of the algorithm that posed difficulties in implementing enhancements.
With our re-implementation, these challenges were overcome, marking a significant step forward for Albin Kistler.
An easily extensible platform
The newly developed platform stands out as a secure and highly flexible web application hosted in the private cloud and fortified with robust data validation measures. This solution empowers Albin Kistler by streamlining the process of building new features, eliminating the lengthy implementation and release phases that previously impeded their growth. The enhanced agility and security of the platform help position Albin Kistler as an innovative company in the financial landscape.
Demystified algorithm
Previously seen as a black box, the business logic behind Albin Kistler’s algorithm was not fully grasped by the previous software development team. Crafted many years ago, it remained a specialized knowledge area, leading to a gap in understanding the algorithm’s mathematical intricacies by software developers. We have now filled that gap, simplifying the algorithm’s complexities for everyone involved in the project within a well-extendable software architecture we’ve managed to implement.
What’s next?
Our Modeso team has transitioned into a maintenance phase, actively supporting Albin Kistler in operating the application in their daily business. Simultaneously, we are gearing up for the next milestone, with substantial development phases planned for the upcoming year.
A key focus shortly is the seamless integration of Albin Kistler’s platform with Microsoft 365 and connecting their document storage system.
We also explore numerous ideas for further enhancements, ranging from UI improvements to additional functionalities. One significant milestone on our agenda is the implementation of rule-based simulations. Albin Kistler intends to implement the ability to simulate scenarios by tweaking input parameters and observing the corresponding output under varied conditions.
The overarching goal is to evolve the platform into a powerful self-service business intelligence solution. This involves using tools such as Power BI or Tableau to allow analysts within the company to create personalized dashboards and extract valuable insights from the data.
- Finance
- Investment management
