Big Data Technology for Investor Protection

High responsiveness to client expectations

L'AGEFI: Wednesday, August 31st 2011


The financial products platform based in Lutry has developed a service that breaks down what underlies structured products.

The Cfinancials platform at Lutry is continuing to diversify its business model. According to Michael Heijmeijer, co-founder of this Internet portal, which already holds almost 10 million financial products, its latest service is focussed on structured products and was developed at the request of two major players in Geneva.

We are trying to offer an increasingly diversified service to our end clients, he says. Cfinancials is offering to analyse the underlying elements of 1,000 structured products, whether yields at maturity, CDS, swaps and other price indicators. Cfinancials shows their development in real time to facilitate more dynamic management. Most of our clients have nonetheless opted for the End of Day (EOD) solution, rather than real time, for logistical reasons, he adds.

Using its proprietary algorithm and a small team of seven, Michael Heijmeijer sorts more than 5.5 billion items of data every day. We offer updates on the development of selected prices and products, with alerts to a mobile phone or by email, as soon as they go into the red, he explains. For products such as bonds, the underlyings are often indicators that let you anticipate a drop or rise in short-term prices.

Until now the principal sources of income of this website have come from promoting financial products, pipeline advertising and sponsoring, as well as from statistics offered to issuers, to see how users react to their product. We offer statistical analyses of a series of funds, taking into account a series of major factors such as volatility and End of Day performance. We then provide advice on the various options the issuer has to improve its visibility, explains Michael Heijmeijer.

A new staff team has been created to ensure the smooth flow of this new service. In this way, the platform strengthens its communications strategy. In particular, because it provides pages of information about the best overall performance of products in several magazines and financial dailies.

With over twenty years experience in finance, the founder of this start-up created in 2006 states that he is only following the demand of his users. Among what is new, negotiations are underway with several American media outlets specialising in finance, who want to incorporate the Cfinancials services.

The start-up posted annual growth of 40% in the past year. The Chairman and CEO will not, however, state his turnover, but confirms that today it is positive.