FRN INGÉNIERIE: innovation at the service of financial market supervision

Author of numerous essays and speaker at various higher education schools, Patrick Herter is the founder of one of the oldest French fintechs. The FRN company is the basis of a robo-advisor created in 2005, an innovative fund monitoring service launched in 2007 and awarded in 2008 by the specialized press. Recently, Patrick Herter’s new company, FRN Engineering, has distinguished itself by launching a new innovative service for monitoring and alerting the market. Her name? ASTRABAZZ.

After many years of working in this field of activity, can you explain to us how your interest in finance and technology was born?

First for call back finance, I can say that I was born there. My father was indeed a recognized professional, CEO in the 1970s and founder of financial institutions in the 1980s. So I grew up in this environmentfamiliesfrom the youngest age.

I have Soon understood that finance has an impact on all subjects, positive or negative.

As for technology, I can say that I have no religion for it. It was never an end in itself. This is only a means that allows to design, as far as possible, services corresponding to the needs; answering, for example, from my point of view of market finance.

You mention your view of the financial markets. What exactly is it?

Since the early 1990s – when market finance had already changed epochs with its regulatory decomposition, the trivialization of the use of mathematics and technological revolutions – I noticed that perhaps not all professionals had taken the measure of its change. radical, particularly in France.

Markets for investors and analysts, fueled by macro and micro economics, have become markets for speculators, trends, ebbs and flows.

This has also had several consequences: for the markets, more volatility, more convergence, more complexity, more virtuality and less reality to justify prices; for professionals, the need to bring more flexibility in management, advice, and more precocity in decisions, even if taken over a long period of time. It was necessary to provide service solutions to respond to changes.

More specifically, can you describe the various innovations offered by the ASTRABAZ service?

ASTRABAZZ responds to a paradox of the financial markets. Complex in their functioning, the markets are binary in their outcome, either up or down.

Instead of analyzing the markets in their complexity, ASTRABAZ monitors them from their binarity. This changes everything and makes it possible to listen to faint noises, identify their possible convergence, early detection of interruptions, the simplicity of alarms, the speed of qualified information, instantaneous monitoring of the isolated element as well as the group to which it belongs, from the smallest to the largest, to any market.

This radically changes the perception we have of markets, of their use, opening the prospect of being able to face the markets without psychological influence, in controlling their risks, and freeing ourselves from shock markets to implement more harmonious markets, more effective management. Performance becomes an impact of risk control and no longer the price of risk. For the saver, long-term investment is positive; it means continuous risk management indispensable !

You launch ASTRABAZ many years after starting your business. Why do it now?

You should know that it took several steps. Innovation is not a picnic. It took a long time to work, adapt to the capabilities of technology, show tenacity, overcome many difficulties before arriving at ASTRABAZ.

It must be understood that technological innovation is slower to materialize than the mind to find conceptual solutions. Furthermore, the financial environment, in agile use, is fundamentally conservative. If digitalization is omnipresent today, truly innovative, disruptive and disturbing by nature solutions are much rarer. In the mid-2000s, the novelties I wore intrigued, first seduced, then worried the established order.

Is this “agile but conservative” sector you describe now more open to innovation?

Times have changed, Fintechs have become “trendy”. In 2021, innovation becomes inevitable, the planetary stakes are immense and finance cannot avoid it. To launch ASTRABAZ, everything had to fall into place. Today it is!

With ASTRABAZ we are able to perform permanent monitoring through early warning signals that help professionals to better manage their business having a real advantage.

As for this new service, how do you intend to implement it? Is the goal also to address foreign markets?

To date, ASTRABAZ monitors funds, ETFs. We will be launching a live titles service next year. Any assets listed can be monitored by our systems. So we have no borders or limits. However, it is a question of moving forward with rigor and full control.

I am French and my paternal family is from the United States. There is a certain logic in starting in France, in Europe and taking sides internationally, as quickly as possible, but without haste.

* Latest book by Patrick Herter: “Eloge de la finance” (2021) published by the “Fauves” editions.

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