In recent years, with the continuous development of my country's financial market and the accelerated use of financial technology, robo-advisory has become an important direction of financial innovation. However, at the end of June, banks such as ICBC and China Merchants Bank "stopped" their robo-advisory services. The once popular "AI Finance" intelligent financial management model of banks has pressed the "pause button". As a major “effective” financial technology innovation, does robo-advisory still have a future?
01
Do you know what “intelligent investing” is?
(a)What is "intelligent investment"?
According to FINRA’s official definition, intelligent investment services refer to the use of big data analysis, quantitative financial models and intelligent algorithms. It uses a series of theoretical models such as intelligent algorithms and investment portfolio optimization to provide users with intelligent and automated asset allocation suggestions based on investors' risk tolerance, financial status and financial management goals.
It can be simply understood as using "robots" to help investors manage finances with one click and allocate and optimize asset portfolios.
(2) The difference between intelligent investment and traditional investment
1. The coverage of intelligent investment advisory is wider.
The traditional investment advisory services of commercial banks are limited by the scarcity of resources and are usually only targeted at high-net-worth customers. The robo-advisory service has expanded the coverage of customers, making investment advisory services no longer a "patent" for high-net-worth customers, which is conducive to financial institutions' customer acquisition.
2. Robo-advisory investment threshold is lower.
Traditional investment advisory services have high entry barriers and management costs, while robo-advisory solves the "difficulties" and "pain points" of wealth management for ordinary customers, with lower initial investment amounts and service rates. Take China Merchants Bank, Industrial and Commercial Bank of China, and Bank of China Intelligent Investment Consulting as examples. All three banks are free of service fees. Among them, Bank of China's "BOC Huitou" has the lowest initial investment amount, only 1,000 yuan.
3. Robo-advisory services are more efficient.
Traditional investment advisors mostly adopt a one-to-one service model, which consumes a lot of labor time and energy, while robo-advisors adopt an automatic customer service model to track changes in market trends, customer account assets and other factors in real time, which greatly The operation process is simplified, transaction time is shortened, and service efficiency is improved.
4. The intelligent investment advisory fund allocation plan is better.
Traditional investment consultants mainly rely on their own professional knowledge and experience to provide clients with investment advice, which is somewhat subjective. Based on big data and artificial intelligence technology, robo-advisors can process massive amounts of information, respond quickly to actual situations, and provide customers with more rational and comprehensive investment services.
02
The bank’s intelligent investment service department “suspends”
(1) Commercial banks “suspend” their intelligent investment advisory business.
In addition, Bank of China, China CITIC Bank, Ping An Bank, China Construction Bank, Shanghai Pudong Development Bank, and Minsheng Bank have also stopped providing robo-advisory services.
(2) Explore the reasons for the “suspension” of smart investment
Why do commercial banks “suspend” such efficient and convenient smart financial management? In fact, although smart investing has many advantages, it also has some problems.
At present, my country's intelligent investment advisory services are not mature enough and are still in the exploratory stage. On the one hand, the technical level and research capabilities are insufficient, the algorithm model used is not yet mature, there are certain deficiencies in investor suitability management and risk control, and automatically recommended products cannot accurately match all the needs of investors. On the other hand, most of the robo-advisory services on the market are sales-oriented and lack human companionship. When the market fluctuates sharply, it is difficult for robo-advisors to appease customers' emotions and can only rely on retreat-style adjustments to investment portfolios to maintain customers, without making customers fully aware of the role of "advisors."
Therefore, in order to protect the interests of investors, since the launch of the robo-advisory business, regulatory authorities have continuously issued documents to continuously standardize the industry from business scope to performance display, to online marketing methods and the quality of practitioners. develop. Especially since November 2021, various laws and regulations on robo-advisory have been intensively promulgated.
Among them, the "Notice on Regulating Fund Investment Advice Activities" (hereinafter referred to as the "Notice") was issued by the Beijing, Shanghai and Guangdong Securities Regulatory Bureau in early November, aiming to strengthen the compliance management of the intelligent investment advisory business. 003010 It is clarified that institutions that are not qualified for fund investment consulting business are not allowed to provide strategic investment advice for fund portfolios, advice on specific fund proportions in fund portfolios, display fund portfolio performance, or provide advice on position adjustments. At the same time, it is required to complete relevant rectifications before June 30, 2023. As a result, many banks have "suspended" robo-advisory related services.
03
In the future, can bank robo-advisory services be "restarted"?
(1) Investors’ demand for smart financial management is increasingly strong.
With the implementation of new asset management regulations and the continuous increase in the investable assets of Chinese residents, investors have increasingly strong demand for professional wealth management and exclusive asset allocation solutions. The human limitations of traditional investment advisors have further unleashed and stimulated investors’ demand for smart financial management.
In addition, the new middle class group that has grown up with the Internet is gradually becoming the "main force" in China's financial market. They advocate individuality, quality, rational consumption concepts and financial management methods. As a revolutionary use of artificial intelligence, robo-advisory can meet the wealth management needs of new middle-class users and fill the market gap for this group.
(2) Robo-advisory helps realize the generalization of asset allocation.
Compared with traditional investment services, intelligent investment services have wider coverage for investors, lower transaction costs, higher service efficiency, and better capital allocation plans. Financial management services that were previously only targeted at high-net-worth customers have been extended to ordinary customers. In the long term, banks can rely on robo-advisory services to generalize asset allocation and optimize customer experience. The “intelligence” of wealth management will remain an unstoppable development trend in the future.
(3) The regulatory system guides the further standardized development of the robo-advisory business.
The "suspension" of our bank's robo-advisory business does not mean the termination. The regulatory system will help guide the further standardized development of the robo-advisory business. I believe that in the future, the bank’s robo-advisory business will start again, make precise efforts, transform from product-centered to investor-centered, educate investors well, and provide investors with more professional and secure investment advisory services. , assisting the digital transformation of the wealth management industry and promoting the healthy and sustainable development of the industry. Related Q&A: Which type of fund does BOC Huitou belong to? "BOC Huitou" is an intelligent investment advisory product officially launched by the Bank of China, which relies on artificial intelligence and big data technology to provide personalized asset allocation services. Related Q&A: Bank financial management starts with R2 level Loss! Will you buy financial products again?
Yes, in order to increase the value of your salary, you must allocate stable financial products.
Recently, the capital market can. It is said to be a mess, and the shrinkage is so severe. When I open my account every day, except for a little infrared in currency funds, stocks, funds, and financial products are all green. This lifeless green makes people panic and sometimes even feel haggard. This kind of Green has also caused great anxiety and fear to many first-time investors.
I was also very anxious. One day, my fund account lost nearly 30,000 yuan. In fact, I suffered such a big loss in 2015. I experienced this in 2018, but I lost money that time. This time I was stuck and had no choice but to play dead. Therefore, I changed my investment ideas and stopped increasing my fund position in 2018. After the year before last, all my funds were bought into financial products sold by banks, because I was also in a panic. I mainly bought R2-rated products and did not look at R3 products at all. I am a radical type. In the past, I chose at least R3-rated products with R2 risk. It is still relatively low. Although the risk is very low, it has not been immune to this crash.
For those who have not used it in the past month, you can also buy currency funds. For some friends who have poor mental capacity, you can buy them every day. Everyone can see the red numbers and feel more at ease, while the returns are much higher than those of banks. Monetary funds mainly invest in short-term money market instruments, usually within one year.
Investment products include: treasury bonds, central bank bills, commercial papers, bank certificates of deposit, short-term government bonds, corporate bonds (with higher credit ratings), interbank deposits and other short-term securities.
Of course, I personally think that for a more stable financial management, you can choose treasury bonds, which are just like bank deposits and have a certain return, and there are no restrictions on the amount of large deposits in banks. There is no limit on the purchase amount of treasury bonds, which is a very good savings option for ordinary people.
Everyone can also pay attention.