In the evolving landscape of wealth management, NOON Invest stands out with its forward-thinking approach and integration of robo advice technology. Born out of a wealth management business, NOON Invest offers a unique niche in the industry by embracing automation and low-cost index fund investing.
This article is based on an interview that we had the opportunity to do with NOON Invest’s co-founder Even Krohn. It delves into the company’s strategic enhancements, its partnership with Sharpfin, and how it is shaping the future of wealth management in Norway.
NOON Invest sprang from Stavanger Asset Management, driven by a curiosity about passive investment trends and to further digitalise the finance industry with a focus on one-to-many communication. After a research trip to London a few years ago to explore similar services, NOON Invest was launched, and quickly gained traction.
You want to have both the Apple and the Amazon experience. Our experience is that we have a lot of retail clients and they get anxious; they feel the need to talk to someone, and NOON Invest provides that, explains Even Krohn-Pettersen.
The core offering focuses on low-cost index funds
NOON Invest employs a strategy markedly different from traditional active asset management, focusing instead on low-cost index funds. This approach not only sets them apart from competitors who favor high-fee active management but also aligns with digital trends in the Norwegian banking industry, which sees a shift towards minimal direct client interaction.
The trend towards index funds is becoming predominant, with over 50% of managed money in the U.S. now in these funds. Europe is catching up, with active managers increasingly struggling to outperform indexes. NOON Invest adapts to this by enhancing client communication through digital means like webinars, providing a more personalised experience in an increasingly service-averse industry, according to Even.
Regulatory environment and ESG considerations
In Norway, regulatory demands make wealth management a costly endeavor. NOON Invest has navigated this by avoiding traditional commission-based models for a fee structure agreed directly with clients, ensuring independence and transparency.
Sustainability and ESG factors are integral to their investment decisions, with increasing client dialogue around these issues reflected in their ESG-compliant portfolio models.
Digital innovation and client customisation
NOON Invest is at the forefront of digital innovation in wealth management. The firm leverages technology for robo-advising and automated client interactions, focusing on simplifying the client journey to enhance growth potential. This automation is central to their strategy, enabling personalised service with less direct contact, appealing to a tech-savvy clientele.
Index funds is more or less what NOON Invest do and we are basically alone and promoting this. With the lack of service in the retail space - we offer know-how and inform one-two-many. Combining the initial dilemma with a solution through webinars, live and interactive, concludes Even.
Strategic Partnership with Sharpfin
NOON Invest sees Sharpfin as a vital partner in its growth journey. Sharpfin's platform, particularly in terms of portfolio rebalancing and client onboarding, is instrumental for NOON Invest as it seeks to enhance the client journey continually, from KYC processes to integration and reporting.
With its client-centric approach, innovative use of technology, and steadfast commitment to low-cost index investments, NOON Invest is redefining wealth management in Norway. In partnership with Sharpfin, NOON Invest is set to continue its trajectory towards making wealth management more accessible, efficient, and client-friendly.