CMB Wing Lung Bank rolls out robo-advisory platform

Digitalisation in the wealth management space has been accelerating amid the pandemic. Recently, AQUMON has worked with CMB Wing Lung Bank to launch a robo-advisory platform, offering clients advanced investment options. 

The bank's Wealth-Tech Services is a retail bank-based robo-advisory offering that provides investors with an automated yet personalised mutual fund portfolio solution. A leader in quantitative strategies, AQUMON provides the core algorithm for Wealth-Tech Services. Leveraging AQUMON's multi-factor fund selection module, Wealth-Tech systematically selects superior mutual funds as building blocks for clients’ portfolios. This strategy analyses factors such as assets under management change, expense ratios, macroeconomic sensitivities, downside risk metrics, and track records.

The portfolio optimisation process is based on the Nobel Prize-winning mean-variance theorem and combines various extensions, such as the use of the Black-Litterman model to better estimate expected returns. Investment is made easy with a data-driven, rule-based platform that minimises the influence of human judgement.

Embedded in its Wintech mobile app, the platform enables clients to undergo risk and investment preference assessments to ascertain their risk profile. A tailor-made portfolio will then be recommended based on clients’ risk appetite, region, and sector preferences. After their purchase, clients will receive monthly reports detailing their portfolio’s performance. Portfolio rebalancing and redemption options will also be provided to ensure that the clients’ investing preferences or needs are constantly reflected.

"Scientific, automated, and transparent investment methods are offered to clients, thus saving time and increasing efficiency. Throughout the partnership, CMB Wing Lung Bank has demonstrated its outstanding values and its commitment to digital transformation," commented Kelvin Lei, CEO and co-founder of AQUMON.

Speaking of the company's future, AQUMON is planning to work with more financial institutions in providing robo-advisor as a service (RaaS) and
accelerating the implementation process. The company also has plans to expand its services and establish offices in Japan, Singapore, and Shanghai.

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