DPS Application Group
Goal-Based Wealth Management (GBI)
GBI is a form of lifecycle wealth management for individuals that combines the probability of achieving goals with the volatility of the portfolio. GBI departs from the typical static portfolio to construct a dynamic portfolio that moves along the efficient frontier. As outlined in Das et al. (2018a), GBI models the probability of achieving the investor’s bespoke financial goals through a glide path that reflects the optimal average asset allocation trajectory over time. This approach is widely regarded as the optimal solution for personalized wealth management in the FinTech era, providing a sophisticated framework for aligning investment strategies with individual goals.
Risk management solutions through the capital markets
Alternative Risk Transfer (ART) refers to innovative mechanisms used by organizations to manage risks that traditional insurance or reinsurance markets cannot effectively cover. ART solutions are particularly useful for risks that are either too large, complex, or uncertain to be addressed by conventional methods. These methods blend elements of insurance, financial markets, and capital market instruments to transfer risk in a cost-effective and flexible manner.
One prominent ART instrument is catastrophe bonds (CAT Bonds), which are designed to mitigate financial exposure to high-severity, low-frequency events such as natural disasters (e.g., hurricanes, earthquakes). CAT Bonds allow insurers, reinsurers, or corporations to transfer catastrophic risk to capital market investors.
UCD (User-centered Design) in Financial Sector
User-Centered Design (UCD) in the financial sector prioritizes the needs, preferences, and limitations of users to create intuitive and effective digital solutions. It involves engaging users through research and testing, ensuring their feedback shapes the design. UCD relies on iterative cycles of prototyping, testing, and refining to continuously improve usability. By focusing on user-centered principles, such as designing with the user in mind, maintaining consistency in the interface, and ensuring simplicity, financial services can deliver seamless and accessible experiences that build trust and meet diverse customer needs.
Ergonomics
Ergonomics is a field that studies the interaction between various human factors and system elements to design systems and products optimized for humans through Human-Centered Design. Ergonomics analyzes physical factors such as musculoskeletal load and biometric signals, as well as psychological factors like cognitive load and emotional satisfaction, thereby playing a crucial role in identifying system elements that reduce user convenience and deriving problems that need to be addressed. Recently, ergonomics has been applied to innovative fields by integrating artificial intelligence technologies, including the development of user state detection models, personalized solutions, and the derivation of optimal UI/UX systems in virtual environments. By combining user and system analysis, data analytics, and machine learning technologies, ergonomics comprehensively analyzes and improves human-system interactions to enhance user safety, convenience, usability, and satisfaction, and to optimize system efficiency.
