Patrik Oliver Schär on Robo-Advisors, AI & the Future of Investing

SELMA is one of Switzerland's leading digital wealth managers, leveraging artificial intelligence (AI) to make investing simpler and more accessible. But how exactly does an AI-driven investment advisor work? And can a machine really make better investment decisions than a human?

The Evolution of Digital Investing

Robo-advisors have experienced a massive surge in recent years, with more and more investors turning to digital solutions to manage their investments. But what sets SELMA apart from other providers? Patrik Schär explains that SELMA differentiates itself through its personalized approach. The AI-powered advisor creates tailored portfolios based on a client’s financial situation, risk appetite, and investment goals.

A frequently discussed topic is the growing competition in the Swiss market. Are there already too many robo-advisors?

Patrik sees a natural selection process at play: only providers that truly add value and operate sustainably will survive in the long term. SELMA collaborates with Saxo Bank for its traditional investment business, while its pension products are offered in partnership with VZ Depotbank. A common question arises: why do SELMA clients pay custody fees when other providers advertise free accounts? Patrik clarifies that so-called free offers often come with hidden costs or less favorable conditions—something many investors overlook.

The Partnership Between SELMA Finance and Caveo

A key highlight of this episode is the newly announced partnership between SELMA Finance and Caveo. This collaboration enables SELMA clients to access financial or pension planning at special conditions. Additionally, they are the first to benefit from a new digital financial pension planning questionnaire developed by Caveo. This questionnaire enhances financial planning efficiency by structuring and automatically analyzing key questions about individual retirement and investment strategies. But why is the integration of digital wealth management with independent financial planning so essential?

The answer lies in the synergy between the two areas. While robo-advisors like SELMA focus on automated and efficient wealth management, Caveo helps develop a holistic financial strategy that includes aspects such as retirement planning, human capital protection, and tax optimization. This combination provides tangible value to clients.

Behavioral Finance: The Psychology of Investing

Another fascinating topic covered in the podcast is the role of psychology in investing. Why do so many investors fall victim to FOMO (Fear of Missing Out)? Why do people panic and sell during market downturns instead of staying the course? And how do algorithms like those used by SELMA take psychological factors into account?

Patrik explains that behavioral finance is an integral part of modern investment strategies. By recognizing common investor biases, algorithms can help mitigate emotional decision-making. A structured, automated investment tool like SELMA can make investors more disciplined and lead to better long-term returns.

In the latest episode of derfinanzplaner, we had the pleasure of speaking with Patrik Oliver Schär, co-founder of SELMA Finance, about the future of digital investing.

The digitization of the financial sector continues to advance, and the combination of robo-advisors and independent financial planning could be the next big step. The partnership between SELMA Finance and Caveo demonstrates how technology and financial expertise can complement each other to offer clients superior solutions.

For those interested in smart investing, AI in finance, and the evolution of digital wealth management, this is a must-listen episode.

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