AQUMON has successfully developed and launched a Robo Advisor for CMB Wing Lung Bank in Early February 2021, after the first phase of the project became public in 2019.
Hong Kong, Feb 2021- Amid the challenges brought by the pandemic, AQUMON is accelerating digitalization in the wealth management industry through its partnership with CMB Wing Lung Bank. Wealth-Tech, developed by AQUMON, is a Robo Advisory platform for CMB Wing Lung Bank that brings its clients a sophisticated, low-cost, and transparent investment option.
Increasing Adoption of Robo Advisory Technology
More banks are adopting Robo Advisory technology to save labour costs and expand on offerings. AQUMON partners with large financial institutions such as CMB Wing Lung Bank which have the customer reach and resources to lead this industry transformation. The investment market shows massive growth potential that is quickly being realised as investors worldwide become increasingly attuned to digital investment platforms and their benefits.
Kelvin Lei, CEO & Co-Founder of AQUMON comments, “The pandemic has accelerated digitalization in the wealth management industry. Traditionally, clients would visit banks to manage their wealth in person. Now, scientific, automated and transparent investment methods are offered to clients; thus saving time and increasing efficiency. CMB Wing Lung Bank’s Wealth-Tech, the Robo Advisory platform developed by AQUMON, utilizes algorithms and scalable IT solutions to provide clients with a personalized investment solution. Throughout the partnership, CMB Wing Lung Bank has demonstrated its outstanding values and its commitment to digital transformation. AQUMON appreciates and holds the opportunity to partner with CMB Wing Lung Bank in high regard.”
Simple, Automated Financial Solutions - AQUMON Bridges The Gap Between Complex Financial Operations and User Experience
CMB Wing Lung Bank’s Wealth-Tech is one of the first retail bank-based Robo Advisory offerings that provides investors with an automated, personalized mutual fund portfolio solution.
Wealth-Tech is embedded in CMB Wing Lung Bank’s mobile app. Clients will undergo risk and investment preference assessments to ascertain their risk profile. A tailor-made portfolio is then recommended according to the clients’ risk appetite, region and sector preference. Following their purchase, monthly reports are provided to allow the client to review their portfolio’s performance. Portfolio rebalancing and redemption options are provided to ensure that the client’s investing preferences or needs are constantly reflected.
As the leader in quantitative strategies, AQUMON provides the core algorithm for CMB Wing Lung Bank's Robo Advisor. Utilizing AQUMON Multi-factor Fund selection module, Wealth-Tech systematically selects superior mutual funds as building blocks for client’s portfolios. The strategy analyzes factors such as AUM change, expense ratios, macroeconomic sensitivities, downside risk metrics, and track records. The portfolio optimization process is based on the Nobel Prize winning Mean-Variance Theorem and combines various extensions, such as the use of Black-Litterman to better estimate expected returns. Investment is made easy with a data-driven, rule-based platform that minimizes the influence of human judgement.
Asia’s Growing Appetite for Digital Wealth Management Solutions
The APAC asset and wealth management industry is expected to be the focal point for global AUM growth, where the AUM is expected to grow faster than any other region globally
with a 49% expected rise in AUM between 2017 and 2025*. Asia’s advantageous fintech regulatory environment will foster the growth of personalized wealth management solutions.
*Source: PwC Report
As compared to its US counterparts, Robo Advisers in China are relatively new. However, China’s pilot launch of its Mutual Fund Advisory Scheme has eased regulatory restrictions and provided a more seamless customer experience for investors since 2019. Furthermore, at least 18 financial institutions have obtained mutual fund advisory licenses to serve their domestic investors^.
^Source: S&P Global Market Intelligence
AQUMON continues to fuel its ambition in expanding and making personalized wealth management more accessible in Greater China. Aside from the accomplishment of raising USD30m Series Pre-B financing and the plan to open an office in Shanghai this year, AQUMON has also obtained a Private Investment Fund License in Mainland China.
Kelvin Lei, CEO & Co-Founder of AQUMON comments, “This year, AQUMON plans to work with more financial institutions in providing Robo-Advisor as a Service (RaaS) and accelerating the implementation process. AQUMON also plans to expand its services and establish offices in Japan, Singapore, and Shanghai.”