Case-based Recommender Systems for Personalized Finance Advisory

Wealth Management is a business model operated by banks and brokers, that offers a broad range of investment services to individual clients to help them reach their investment objectives. Wealth management services include investment advisory, subscription of mandates, sales of financial products, collection of investment orders by clients. Due to the complexity of the tasks, which largely require a deep knowledge of the financial domain, a trend in the area is the exploitation of recommendation technologies to support financial advisors and to improve the effectiveness of the process. The talk presents a framework to support financial advisors in the task of providing clients with personalized investment strategies. The methodology is based on the exploitation of case-based reasoning and the introduction of a diversification technique. A prototype of the framework has been used to generate personalized portfolios, and its performance, evaluated against 1,172 real users, shows that the yield obtained by recommended portfolios overcomes that of portfolios proposed by human advisors in most experimental settings.