In this episode of the Innovators Exchange, Hiten Patel and Magnus Burkl welcome Steffen Scheuble, founder and CEO of Solactive, a company specializing in developing and calculating financial indices. Steffen talks about the challenges and successes he faced while growing the company, and his insights on the current and future trends shaping the index industry. The conversation touches on the impact of geopolitical factors, the increasing demand for customization in investment products, and the evolving role of technology, particularly artificial intelligence (AI), in index manufacturing.
Key talking points:
- Background and motivation: Solactive specializes in calculating indices like the FTSE 100 and S&P 500, but with a focus on IT-driven efficiency and customization. Steffen's journey actually began as the first client of Solactive before it officially launched, driven by a need for efficient index solutions while working at Deutsche Bank.
- Geopolitical impact: Steffen talks about the current geopolitical landscape and its implications for the index industry, particularly the rising interest in European-centric investment strategies. He discusses a noticeable shift in focus from US-based indices to European opportunities, driven by changing global dynamics.
- Customization trends: The demand for customized indices is increasing as investors seek tailored solutions that align with their specific philosophies and regulatory requirements. Steffen shares how Solactive is committed to reducing the costs of index production to facilitate the launch of more personalized investment products.
- Future of the index industry: Steffen emphasizes the importance of staying attuned to emerging trends and being flexible in response to market demands.
- Themes driving the rise in private market indices: Key factors include the growth of private market indices, environmental, social, and governance (ESG) considerations, and the need for adaptability in a rapidly evolving market. While AI enhances efficiency in index production, Steffen emphasizes the current limitations in making long-term predictive investment decisions.
This episode was recorded in April 2025.
This episode is part of the Innovators' Exchange series. Tune in to learn more about the evolution of AI, risk management, and entrepreneurial journeys.