A brokerage service for retail investors parking their hard earned cash via algorhithms is a rising trend for financial markets. As Tara Joseph reports, Asia is now trying to play catch up to already established U.S. sites.
Meet Chloe - part of the hottest new trend in finance... Robo advisory - an brokerage service for retail investors parking their hard earned cash in stocks, bonds or foreign exchange all via algorhythms... Just tap your financial goals into an app and get automated advice. There's often no minimum investment - and no face time with an actual human broker. Industry watchers expect this segment of the market to capture more than 5 percent of total money invested around the world within in the next five years. And from big names likes like Vanguard to independent tech start-ups, the race is on to build the best new auto-investment platforms. Just a few weeks ago, U.S. firm Betterment blew past the 5-billion dollar mark... making it the robo advisory with the largest cashpile on its books. Firms like these say closely watched political events like Brexit are helping push customers into active investing thanks to the accessibility of technology. But the path to success isn't entirely smooth. There's the obvious concern about cybersecurity - and worries over how many investors would ditch their apps in a recession or bear market. Chloe - built by indepedent firm Eight Securities is set to launch in Hong Kong next month in a region lagging the US and Europe when it comes to financial technology. But if the trend catches on globally like tech firms are hoping... It may not be too long before investors are on the same pace from east to west.