On 15th May, 2018 the CFSG financial service providers introduced the first AI-powered financial application in Hong Kong that was targeted at the millennial generation. The app was launched in partnership with HKT, the broadband provider.
The application that was introduced was named Alpha i. It aims to accomplish trades at eye blink pace. And in mere 0.8 milliseconds it was able to connect with Hong Kong stock exchange and other major cloud servers linked to the HKT network.
The app also claimed to use “NASA technology” and AI (artificial intelligence) along with big data analytics and deep learning and therefore predict the trends in the market more accurately. These trends include those related to price rallies and declines. After the trends have been analyzed, users are then notified by the app automatically. This feature allows app users to be connected to real-time data without having to rely on paper-based portals.
The base of Alpha i, as learned by the Fintech Company, is expected to grow to a total of 50,000 users with an estimated turnover of about HK$ 1000 million by the end of 2018. This was confirmed by Jeffery Kwan, the Executive Director of CFSG during a talk with the South China Morning Post.
“We definitely hope that this app will make financial investments more accessible and interesting to Millennials. Additional services such as on the go investing advice for clients will entice them to use this app. Users can turn on an AI price alert which will help them monitor stocks they have added to their watch list.”
Jeffery Kwan, Executive Director, CFSG
Since Millennial investors are familiar to using hands-free robo advice-givers and digital forums that robotically produce algorithm-driven financial investment advice, the MSCI China Index has faced a boost because the robo advisers emphasize on investing in emerging markets exchange-traded funds (EFTs). As confirmed by Ajay Kapur, BofA Merrill Lynch’s Asia Pacific equity and global emerging markets strategist, the majority of these funds are mechanically sent into the Chinese equities.
With over two-thirds of the Hong Kong Millennials aged from 25 to 30 having money in stocks (reports a survey conducted by BlackRock in 2017), their Asian peers are also compelled to invest in stocks.
Nonetheless, it is not only CFSG in Hong Kong that is determined to develop the AI investment offerings. A Fintech venture called ‘8 Securities’ introduced a robo advisory service in 2016. This service was named as Chloe and allows users to invest in Hong Kong EFTs’ diversified portfolios.
In April, the firm gathered US$25 million from Nomura Asset Management in Japan to produce robo advisory products that are exclusively targeted at the Japanese market’s Millennials.
As for the application Alpha i, it is available to CFSG’s registered clients only and is free to download on Google Play and other major platforms like it.
Primary: Stock market, investment
Secondary: Hong Kong, AI
News Sources
https://www.scmp.com/business/article/2148509/new-ai-powered-investment-app-focus-hong-kong-millennials
https://www.blackrock.com/corporate/newsroom/press-releases/article/corporate-one/press-releases/2017-gipssurvey-hk