China Guangfa Bank, one of the earliest-incorporated joint-stock commercial banks on the mainland, has launched a computerized investment advisory service, aiming to better integrate its business of offline professional wealth management and online artificial intelligent service.
The artificial intelligent investment adviser, or the so called robot-adviser, is an online wealth management service that provides automated, algorithm-based portfolio advice without the use of human financial planners.
"Chinese investment individuals are more like retail private investors without professional advisories. We are launching the robot-adviser to help them invest in a more rational and low-risk way," said Zong Lexin, vice-president of CGB.
CGB's robot-adviser was launched on a database of 4,000 private investors and fund market researchers, aiming to better allocate investors' assets, according to Zong.
"The AI investment service will give professional advice for private investors according to their investment approaches and earning expectation," Zong said.
The average yield of three types of funds recommended by the bank's robot-adviser service is 11.5 percent after the AI service was put in a trial operation since March, according to Zong.
"The robot-adviser is not only a tool providing recommendation of funds, but an investment adviser, which will also provide risk alerts, help adjust plans and remind of profit and loss," Zong said.
According to Zong, CGB's robot-adviser will also provide various financial and asset-allocation services covering life insurance, wealth management products, precious metals and trust investment.
Shi Bo, chief investment officer with China Southern Asset Management Co, said, "Individual investors will depend more on the robot-adviser in the future as the smart management tool will develop a healthy and rational approach of asset management."
China's growing middle class and the popularity of the mobile internet will help the country to develop into the world's largest robo-adviser market, according to sources with CreditEase Corp, one of the leading wealth management and peer-to-peer or P2P company.
"With fast-paced economic development, China's new middle class is growing quickly, which is a major factor behind the fast-growing robot-advisor market," said Wang Fuxing, managing director at Credit-Ease Wealth Management Co Ltd.
CreditEase launched ToumiRA, a computerized investment advisory service, in June last year, helping smart investors create global portfolios inexpensively.
The smart investment service targets individuals with small to medium-sized assets, according to Wang.