Eliminating Human Error in Investing

Q: How does Rivium plan to facilitate investing through its “robo-adviser” tool?

A: Rivium uses automation tools to facilitate long-term investing in diverse portfolios. Our goal is to provide users with a better and easier experience to start investing. One benefit of using the robo-adviser is its accessibility. Instead of setting an appointment with an adviser at a particular location, our tool allows clients to obtain financial advice and manage investments at any time. Also, the cost is lower because a robo-adviser has a smaller fixed cost than its physical counterpart Finally, robo-advisers reduce behavioral biases when it comes to investments. Humans tend to make biased choices; they can be subjective and favor products for which they can receive higher commissions. If someone uses our tool and transfers the decision-making processes, they will get objective advice according to what the client is looking for in their portfolio. We are taking away human error in a sense.

One negative aspect of using the robo-adviser could be that the user has less engagement. Given that everything is done automatically, there is no exchange of ideas or knowledge but we take this as an opportunity to improve the tool. Even if someone is putting their money into a robot, they should know what is happening to their money. However, the low cost and easy accessibility that the robo-adviser offers and the potential to improve are amazing. We are putting technology first and giving people these tools so they can be used in the best way possible toward their investments. 

Q: How is the company building credibility around its robo-adviser to win customers and overcome the fear that their money may be at risk?

A: Clients need to understand the pros and cons of using a robo-adviser. However, if your money is going to be handled by a robot, there must be proper oversight in terms of regulation and supervision because that element is key for the investment to be successful. The regulators have to see and supervise everything that is happening and the robo-advisers must be transparent and objective and provide the appropriate advice in regard to the client’s needs. Rivium is regulated by the National Banking and Securities Commission (CNBV) in Mexico. They have analyzed our investment process, risk profiling, portfolio allocation and technology to determine if we can offer our service to the market. We also continuously send reports to the CNBV and are audited by commission to ensure we have the required capital level to operate. Also, our funds are protected up to US$500,000 in equity and US$250,000 in cash by the Securities Investor Protection Corporation (SIPC). 

Another important factor when dealing with technology is cybersecurity and data privacy. The robo-adviser should have bank-level security to deal with these matters in order to generate trust. We are as regulated as any other financial entity and our technology is audited and verified.

Q: How might a recession in 2023 impact the company and investors?

A: There will always be ups and downs in the market. In the short term, money is sitting in the bank and will not go down, while investments might. In the long term, if you put your money in the bank instead of investing, it is almost guaranteed that it will be the worst strategy. 

People should always have a security or rainy-day fund but we need to educate ourselves to think in the long term when it comes to investing. No good investment comes in the short term and we should avoid falling into the pitfalls that could arise as a result of an economic recession. 

Q: What are the company’s initiatives to make investing available to everyone? 

A: First of all, we went through all the processes to become regulated and to be able to offer our solution to the public in a way in which they can be sure their money is being handled as it should be. We are also continuously checking what our market wants and needs so that we can help fix it at scale, not only for one person or one region but for the market as a whole. This can be tricky because, in Latin America, there are very different habits when it comes to investing and saving, so one thing we are doing is adapting the solution to the Mexican mindset and the market. In general, we adapt ourselves to what people want and solve the problem. 

Q: How would you describe the link between Rivium and gaining financial freedom from the user’s perspective?

A: Wealth and financial freedom come with long-term investments and providing the right tools to the market and teaching users that any amount should be enough for anyone to start investing somehow. The apps coming into the market, which are standard trading apps, are harmful because they simply promote the purchase of a security. These apps that do not advise users are harmful because they are creating day-traders and these types of investors lose a great deal of money. We are totally against these investments. We are trying to provide the right tools for the long term, rather than having people bet on the short-term stock market. We want to make a positive difference in people’s lives. 

Q: What are the company’s main goals in 2023? 

A: We are about to launch a beta version of the app. The hard launch will be in January and we plan to be in Mexico throughout 2023. We will then expand to Colombia and Chile. For 2023, we are also planning to expand the solutions that are offered within the app to help our users invest more efficiently and automatically. We plan to be the go-to app for investment in Latin America.

Rivium is an online investment company. It offers a robo-adviser app that seeks to democratize investment in Mexico through automation tools.