Swiss private bank Banque Cramer develops fintech tool

Swiss-based private bank Banque Cramer, announced that it has developed a fintech tool ‘primeSelector’ that helps in reshaping the company’s flagship Swiss equity strategy, according to reports by Citywireselector.

The fintech tool is an equity selection tool based on factor investing and it is available to anyone globally for free of cost. The tool has five prime factors used to select equities that include the Piotroski score, risk, intrinsic value, momentum, and estimates.

“There are no complicated black-box calculations behind these factors. For us it was a sound combination easily explainable to every single client,” Placido Albanese, CIO at Banque Cramer, said.

He also said that the factors were chosen as investors can easily understand it and work well when aggregated. The Piotroski score is used by the tool as a quality filter. This particular score was chosen as it helps to avoid value traps.

“You will find stocks that have a full value point but weak momentum and Piotroski. What do you do with this value? We won’t buy it as it is likely to be a value trap,” Albanese added.

Banque Cramer provides the tool for free and is currently in beta and is set to be completed by the start of next year. The company plans to add APIs at different levels of integration for the B2B development, which will come at a cost.